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Saturday, February 15, 2020

State program gives banks incentives to loan to RI small businesses

BankLOCAL initiative supports 348 small businesses in Rhode Island in three years

Treasurer Magaziner's small business lending program, BankLOCAL, celebrates its 3-year anniversary this week having supported 348 small business loans and moved $37.5 million of cash deposits to Rhode Island banks and credit unions.

"BankLOCAL is another way that we use the resources of the Treasurer's Office to encourage economic growth and job creation in Rhode Island," said Treasurer Magaziner. 

"By partnering with local banks and credit unions we are helping hundreds of Rhode Island small businesses and keeping more of our money here in the state."

With BankLOCAL, the Treasury moves deposits into local banks and credit unions when they make qualifying loans to Rhode Island small businesses. 

Loans made to first-time business owners, veteran-owned businesses, and women and minority-owned businesses are eligible for a 2-to-1 matching deposit into the lending bank or credit union - up to $250,000 per loan. Thirty-two percent of current BankLOCAL-backed loans have qualified for this match.

Businesses that have received a loan supported by Treasurer Magaziner's BankLOCAL program include Hair on Mane, a salon in Wakefield, Smoke & Squeal BBQ in Pawtucket and Steel Giraffe, a crane and rigging company based on Aquidneck Island.

The Treasurer's Office has no role in selecting or approving small business borrowers. 

Lending decisions are made by the participating banks and credit unions that have lending expertise in our communities. Participating lenders include BankNewport, BankRI, Bristol County Savings Bank, Centreville Bank, Customer's Bank, Freedom National Bank, Home Loan Investment Bank, Navigant Credit Union, People's Credit Union and Washington Trust.

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