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Hello, I'm Dr. Deb and will do my best to help with this concern about Butch.
While the presence of blood as you've seen can be concerning, it doesn't necessarily have to be alarming unless there's a profuse amount of it...which it doesn't sound as if there is. In most cases, the presence of blood reflects an irritated colon and nothing more serious than this.
IBD, internal parasites, dietary indiscretion are only a few examples where blood might be seen.
I would continue his bland diet and the anti-diarrhea medication you were given by your vet. If he worsens in any way and/or the stools don't firm up within another day or so, then a vet visit might be wise.
I hope this helps, Deb