Community Partners Bancorp, the holding company for Two River Community Bank in New Jersey, announced it has been approved on a preliminary basis for a $12 million investment.
The investment will be received under the company's preferred stock from the U.S. Department of Treasury's Small Business Lending Fund.
"The types of small business loans intended by the SBLF program represent a significant portion of our Company's loan portfolio," said William Moss, president and chief executive officer of Community Partners Bancorp. "We are proud of our successful lending practices to the small business community and continue to look forward in supporting our local business customer through these difficult economic times."
The company plans to use $9 million of the funds to redeem outstanding shares of preferred stock listed under the Troubled Asset Relief Program Capital Purchase Program.
According to the Department of the Treasury's website, the SBLF is a $30 billion fund that provides capital to qualified community banks with assets of less than $10 billion in an effort to encourage lending to small businesses across the country.