Community Partners Bancorp Receives Preliminary Approval for $12.0 Million of SBLF Capital

Community Partners Bancorp CPBC announced that it has received preliminary approval to receive an investment of $12 million in the Company's preferred stock from the United States Department of the Treasury under the Small Business Lending Fund. The SBLF is a voluntary program intended to encourage small business lending by providing capital to qualified community banks at favorable rates. In connection with the investment, the Company will use $9.0 million of the SBLF funds to redeem all of the outstanding shares of preferred stock issued to the Treasury under the TARP Capital Purchase Program. It is also the intention of the Company to redeem at a to-be-determined price the 311,972 warrants to purchase additional shares of preferred stock issued to the Treasury as part of the original TARP funding. William D. Moss, President and Chief Executive Officer commented, "The types of small business loans intended by the SBLF program represent a significant portion of our Company's loan portfolio. 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."