Rhode Island Treasurer Seth Magaziner joined members of Rhode Island's business and veteran communities to announce a new incentive to support small business loans to veteran-owned businesses through the state's BankLOCAL program.
"Small businesses are the backbone of Rhode Island's economy, but too many entrepreneurs have a hard time getting loans to grow their businesses and hire more people," said Treasurer Magaziner. "That's why I started the BankLocal program, where we are moving millions of dollars to community banks and credit unions when they make loans to Rhode Island small businesses."
"I am pleased to announce that BankLOCAL is now providing extra incentive to lend to veteran-owned small businesses in the Ocean State," Treasurer Magaziner continued.
Treasurer Magaziner's BankLOCAL initiative is moving millions in state cash -which has historically been deposited in big national and international banks- back home to Rhode Island credit unions and local banks. Since the program launched, in 2017, BankLOCAL has moved more than $20 million back to Rhode Island, supporting loans to more than 200 small businesses.
"Operation Stand Down Rhode Island is proud to support this initiative that not only encourages veteran business owners but enables them by giving them access to the capital they need. This initiative creates another important opportunity for our veterans and we congratulate Treasurer Magaziner for spearheading this effort," said Operation Stand Down Rhode Island Executive Director Erik Wallin.
With today's announcement, BankLOCAL will now incentivize lending to veteran-owned small businesses with a 2-to-1 deposit with the bank or credit union making the loan. BankLOCAL currently offers the same incentive structure for first-time business owners, as well as women and minority owned businesses.
"Veterans provide a lot of talent for Rhode Island's economy," said Kasim J. Yarn, Rhode Island's Director of Veterans Affairs. "That's why expanding our state's BankLOCAL program to support Veteran entrepreneurs is good business. I applaud the Treasurer for leading this effort and recognizing that our Veteran-owned businesses are a smart investment for Rhode Island."
"Navigant Credit Union is happy to be partnering with the State of Rhode Island and the Treasurer's office in this effort to provide loans to veteran owned small businesses. With today's announcement of the expansion of BankLOCAL program, we will have additional opportunities to take the funds invested in the Credit Union by the state and reinvest those funds in the form of new loans to local veterans' small businesses," said Gary Furtado, President and CEO of Navigant Credit Union.
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About BankLocal
Through Treasurer Magaziner's BankLOCAL initiative, if a participating bank or credit union makes a $100,000 loan to a small business, Rhode Island will make a $100,000 deposit into that bank or credit union. With the 2-to-1 match for veteran-owned small business loans, Rhode Island will make a deposit of $200,000 into the bank or credit union. The 2-to-1 match is also available for loans made to first-time business owners, women and minority-owned and, now, veteran owned businesses. The State has no role in selecting or approving small business borrowers. Lending decisions are made by the participating banks and credit unions.
Contact: Evan England, Director of Communications (401) 222-2240 | (401) 439-2199 (mobile) evan.england@treasury.ri.gov