Program aids local business
State Treasury program works with local banks, credit unions to support business
Banking program helps fund small business growth
CENTRAL FALLS – Rhode Island Treasurer Seth Magaziner announced Wednesday that a new initiative called BankLocal has moved $15 million in state deposits to local banks and credit unions, matching loans to more than one hundred fifty small businesses in Rhode Island.
“I am committed to using the Treasurer’s Office to encourage economic growth and job creation in Rhode Island,” said Treasurer Magaziner. “Our BankLocal program is improving access to capital for Rhode Island small businesses by depositing cash at local banks and credit unions that are supporting Rhode Island entrepreneurs.”
The BankLocal program moves a portion of the State’s cash into secure accounts at local banks and credit unions. The amount deposited in each lending institution is determined based on loans made to small businesses in Rhode Island.
“For over 100 years, Navigant has been delivering on our commitment to serve the communities where we operate,” said Gary Furtado, CEO of Navigant Credit Union. “The early success of this innovative program highlights the value of collaboration between government and the business community.”
Eight Rhode Island banks and credit unions have joined the BankLocal program. To date, more than $15 million has been deposited to local banks and credit unions, matching over 150 qualifying local small business loans.
Jairo Echeverry, owner of Budare Grille in Central Falls, is a small business owner who received a BankLocal supported loan from Navigant Credit Union. “As a small business owner, working with Navigant has been a great experience. Their loan officer took the time to really understand my business needs,” said Echeverry. “I am happy that the Treasurer’s Office is working to provide financial support to small businesses through the BankLocal program.”
Deposits into participating banks and credit unions will typically match the amount lent to qualified small businesses in Rhode Island, who employ fewer than 100 employees. Loans to women and minorityowned businesses and businesses founded by first-time entrepreneurs are eligible for a 2-to-1 matching deposit into the lending bank or credit union - up to $250,000 per loan.
“Bristol County Savings Bank is pleased to be part of the BankLocal program,” said Patrick Murray, President & CEO of Bristol County Savings Bank. “The Bank’s new collaboration with Treasurer Magaziner’s office supports small businesses, which are the backbone of the local economy.”
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.
No pension money is used for the BankLocal program and the Rhode Island Treasury has no role in selecting or approving small business borrowers. Lending decisions are made solely by participating banks and credit unions. Participating lenders include BankRI, Bristol County Savings Bank, Centreville Bank, Customer’s Bank, Home Loan Investment Bank, Navigant Credit Union, People’s Credit Union, and Washington Trust.