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VENICE --Â Florida Shores Bank says the capital injection it received from the U.S. Treasury's Small Business Lending Fund will allow it to grow assets by $90 million.
In August, Florida Shores was selected to receive $7.35 million in equity capital from the SBLF. In exchange, the Venice-based bank provided the fund with 12.75 million shares of its preferred stock. Florida Shores will pay a 1% dividend on those shares upon entering into the fund's investment with the bank.
Because banks are required to maintain strict ratios between outstanding loans (assets) and equity capital, the $7 million capital injection allows Florida Shores to expand its lending. The bank provided an updated estimate of its short-term lending growth this week.
To date, 17 Florida banks have received $144.6 million in capital from the SBLF. A full list of SBLF transactions is available online.
http://www.treasury.gov/resource-center/sb-programs/Pages/sblf_transactions.aspx
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