WINSTON-SALEM, N.C. -- BB&T Corp. says it has received preliminary approval to get $3.1 billion in government bailout funds, but the bank says it already had enough money to lend.

BB&T chairman John Allison said Monday the bailout funds will strengthen the bank's lending ability and open "other strategic options."

The Winston-Salem bank says the government will get preferred shares that will pay a 5 percent annual dividend rate for the first five years. The payout will increase to 9 percent in the subsequent five years, unless the government redeems the stock. The Treasury will also get 10-year warrants to buy BB&T common shares.

The financing will boost the bank's capital ratio, which is a measure of its stability.