Security Business Bancorp received a Preferred Stock investment through the new
U.S. Treasury program aimed at stimulating small business loans
SAN DIEGO (August 2, 2011) –Luce, Forward, Hamilton & Scripps LLP announced today that it was instrumental in Security Business Bancorp closing a Preferred Stock investment of $8.9 million from the Small Business Lending Fund (SBLF), one of the first three such investments in California. SBLF is a $30 billion fund developed by the U.S. Treasury to stimulate lending to small businesses by providing capital to qualified community banks.
Luce Forward’s managing partner Kurt Kicklighter and his team negotiated the final documentation, counseled Security Business Bancorp on potential hurdles, and obtained the necessary approvals that brought the investment to completion. Attorney Chad Ensz worked closely with the U.S. Treasury’s counsel to resolve a number of issues of first impression in California to put together a precedential structure that will enable other California financial institutions to follow suit.
“In order to help our region grow economically, Luce Forward must work proactively with its local, state and federal institutions so that adequate funding is made available for small and mid-sized businesses,” says Kicklighter. “Security Business Bancorp is a prime example of how community banks play a significant role in helping our business communities prosper.”
According to the U.S. Department of the Treasury, banks participating in the SBLF will benefit from incentives the Fund provides for increased lending. The more a bank increases its small business lending, for example, the lower the dividend rate it will pay on the Preferred Stock sold to the Treasury.
About Security Business Bancorp
Since its founding in 2002, Security Business Bank (www.securitybusinessbank.com) has built a reputation for providing its small and mid-sized business customers with financial innovation, access to management and superior client service. The bank has redefined the business banking experience through its “Executive at Every Level” program, which fosters local decision-making, employee empowerment and community specialization. Security Business Bank is an operating subsidiary of Security Business Bancorp, a bank holding company established in 2008 to support the bank’s continued growth. Security Business Bank operates three San Diego County locations including Downtown, Carmel Valley and Carlsbad offices with an Escondido location opening in August.
About Luce Forward
Founded in 1873, Luce, Forward, Hamilton & Scripps LLP (www.luce.com) is a full-service California law firm with offices in San Diego, San Francisco, Los Angeles, Carmel Valley/Del Mar, Orange County and Rancho Santa Fe. For more information, visit www.luce.com.