The Treasury Department has, so far, approved dozens of banks to participate in the Small Business Lending Fund, but others continue to wait for approval, with many giving up. Banks that are not approved by Sept. 27 could face restricted capital options and increased dividend costs as they seek to exit the Troubled Asset Relief Program. Some TARP "banks may consider a stock offering if they don't get SBLF and that window has closed because of volatility in the markets," said Kip Weissman, a partner at Luse, Gorman, Pomerenk & Schick. "Everyone is very concerned there will be banks that just run out of time."

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