Treasurer Magaziner’s «Bank Local» Program Moves Millions to Local Banks and Credit Unions Lending to RI Small Businesses

Providence, RI – Rhode Island General Treasurer Seth Magaziner today hosted
representatives
from Rhode Island’s small business community, local banks, and credit unions to
announce «Bank Local» a community deposit program, moving millions of dollars in
state deposits to local banks and credit unions to encourage loans to Rhode Island
small businesses.
«I am constantly looking for new ways to use the resources of the Treasurer’s Office
to encourage economic growth and job creation,» said Treasurer Magaziner. «Bank
Local increases the amount of capital available to the Rhode Island small businesses,
by supporting the local banks and credit unions who are providing those loans.»
Bank Local moves millions in state cash ?-which has historically been deposited
in big national and international banks- into secure accounts with local banks and
Rhode Island credit unions. The amount deposited in each institution is determined
based on loans made to small businesses in the community.
«People’s Credit Union is pleased to partner with the Treasurer’s Office on the
‘Bank Local’ program», said Ellen Ford CEO, Peoples Credit Union. «This program
demonstrates the cooperation between state government and business to strengthen
Rhode Island’s small business community. The program is a win-win for everyone
involved.»
Currently, six Rhode Island banks and credit unions have joined the program, and
in recent weeks more than $4.5 million has been deposited to in-state accounts
for 47 qualifying local business loans. Stephanie Keenan, owner of Hair on Mane
beauty salon in Wakefield, RI is among those who received a «Bank Local» supported
loan from People’s Credit Union.
«As a first-time small business owner, working with People’s Credit Union has been
wonderful. People’s took the time to listen to me and really understand my business
needs» said Keenan. «I want to thank the Treasurer’s Office for partnering with
my Credit Union by providing financial support through The ‘Bank Local’ program.
Programs like this one have a positive impact on small businesses in our state.»
Not only does Bank Local make sure more Rhode Island resources support Rhode Island
businesses, it doubles support for loans to women and minority owned businesses,
encouraging lending to groups WMBE businesses, which have historically faced
difficulties
accessing loans.
«So many entrepreneurs, despite their determination, creativity, and desire to make
a difference in our economy, are hindered by a lack of access to funding,» said
Brian J. Murphy, Chairman & CEO, Home Loan. «RI Treasury’s ‘Bank Local’ program
will help address that issue, and we look forward to partnering with Treasurer
Magaziner
to support small businesses throughout Rhode Island.»
Qualifying loans are made by banks and credit unions to small businesses of up to
100 employees, with loan amounts not to exceed $250,000. Loans can be secured or
unsecured, term loans or credit lines. Participating financial institutions must
meet minimum requirements for financial soundness, including proof of FDIC or NCUA
insurance, and all state cash deposits must be fully collateralized.