JOHNSTOWN, Pa., Aug. 12, 2011 /PRNewswire/ -- AmeriServ
Financial, Inc. (NASDAQ: ASRV) today reported that it received
$21 million from the Small Business
Lending Fund (SBLF). The SBLF is a voluntary program
sponsored by the U.S. Department of Treasury that encourages small
business lending by providing capital to qualified community banks
at favorable rates. The initial interest rate on the SBLF funds
will be 5% and may be decreased to as low as 1% if growth
thresholds are met for outstanding small business loans. AmeriServ
Financial Inc. used the SBLF proceeds to repurchase $21 million of outstanding preferred shares
issued under the TARP Capital Purchase Program. AmeriServ
Financial Inc. also plans to proceed with the repurchase of the
stock purchase warrant associated with the TARP Capital Purchase
Program.
"We are pleased and excited to participate in the Small Business
Lending Fund," commented Glenn L.
Wilson, President and Chief Executive Officer. "The
SBLF is designed to bring community banks and small businesses
together to help create jobs and promote economic growth in local
communities. As a leading community bank in the markets that
we serve, the SBLF fits our strategic plan perfectly and will allow
us to further increase our lending activity in small business
commercial loans and owner occupied real-estate loans."
This news release may contain forward-looking statements that
involve risks and uncertainties, as defined in the Private
Securities Litigation Reform Act of 1995, including the risks
detailed in the Company's Annual Report and Form 10-K to the
Securities and Exchange Commission. Actual results, including
the rate on the SBLF funds, may differ materially.
SOURCE AmeriServ Financial, Inc.