PROVIDENCE, R.I.–The State of Rhode Island has become the latest to back a community deposit program called “Bank Local.”
The objective of the program is to move 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 Rhode Island Treasurer Seth 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.”
According to the state, the amount deposited in each institution is determined based on loans made to small businesses in the community.
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.
"People's Credit Union is pleased to partner with the Treasurer's Office on the 'Bank Local' program. 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,” said Ellen Ford CEO, Peoples Credit Union, in a released statement.
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.