First Bancshares Eligible for Up to $175 Million Investment Under Treasury Program

By Colin Kellaher

First Bancshares Inc. on Thursday said it is eligible for an investment of up to $175 million from a U.S. Treasury Department program aimed at boosting lending to small and minority-owned businesses and people living in poorer communities with limited access to banking.

The Hattiesburg, Miss., bank holding company said it hasn't yet determined whether it will accept the proposed investment, which would be in the form of in non-dilutive Tier 1 perpetual preferred capital, under the Treasury's Emergency Capital Investment Program.

The Treasury on Tuesday announced the release of $8.7 billion under the program, which was created earlier this year to encourage low- and moderate-income community financial institutions to increase their efforts to support small businesses and consumers in their communities.

According to published reports, the $8.7 billion will be going to 186 community-based financial institutions based in 36 states, as well as Guam and Washington, D.C., in distributions ranging from less than $100,000 to more than $200 million.

First Bancshares said that if it accepts the investment, it would be required to fulfill certain conditions established by the Treasury and would be subject to certain restrictions.

Write to Colin Kellaher at [e-mail]

(END) Dow Jones Newswires

December 15, 2021 07:15 ET (12:15 GMT)

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