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.
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Contact: Evan England, Director of Communications - Office of the General Treasurer (401) 439-2199 evan.england@treasury.ri.gov