Texas bank awarded capital by U.S. Treasury

6/28/2011

A Dripping Springs, Texas, bank recently exchanged preferred stock for private capital provided by the U.S. Department of Treasury.

According to the Austin Business Journal, Pioneer Bank's Small Business Lending Fund program was awarded $3 million as part of the Small Business Jobs Act of 2010.

Last year, the bank ranked No. 1 in ABJ's "Fast 50" list of companies with less than $10 million in revenue. Between 2007 and 2009, the institution increased revenue by 418 percent.

"The types of loans promoted by the SBLF are a significant part of Pioneer Bank's lending strategy," Jeff Wilkinson, president and CEO of Pioneer, told the news source. "The bank has originated more than $4 million in credit from the program since June last year. It was among the first to provide such loans."

Timothy F. Geithner, U.S. Treasury Secretary, recently stated in a prepared statement before the House Small Business Committee that his department has received $11.6 billion from the SBLF, with 869 accompanying applications, according to Bloomberg.

Geithner said the Treasury plans to begin providing capital to banks "very soon."