BARABOO, Wis. -- Money is beginning to trickle into the economy through community banks that took federal bailout money even as some banks bail from the program.

Community banks -- even healthy ones -- were encouraged to participate in the Troubled Asset Relief Program to bolster their capital and make more loans.

In Wisconsin, Baraboo Bancorp earmarked all of its nearly $21 million for loans for homes, cars, businesses and farms.

Chief executive Merlin Zitzner said the loan demand "is crazy." He's had to hire five or six additional loan processors because they're helping hundreds of people refinance their houses.

Other bankers are frustrated over the politics of the program and federal intrusion. So far, at least 12 banks have returned more than $1 billion.