Somerville-based Central Bancorp Inc., the parent company of Central Co-operative Bank , has received preliminary approval to receive an investment of up to $10 million in the company’s preferred stock from the Department of the Treasury under the Small Business Lending Fund (SBLF).

The company intends to use up to $10 million in SBLF funds to redeem the shares of preferred stock issued to the Treasury under the TARP Capital Purchase Program, according to a statement. Subject to review of the SBLF documentation by the company and final due diligence by the Treasury, Central Bancorp Inc.expects to seek the full amount of the approved investment.

Closing is expected to occur this month.