PROVIDENCE, R.I.—The state of Rhode Island has said it is moving $15 million into eight banks and credit unions to encourage lending to small businesses.
The deposit is part of the BankLocal program launched in December. The program matches small business loans with deposits from state agencies. Loans can go up to $250,000 for businesses with 100 employees or fewer.
Loans to women and minority-owned businesses and businesses founded by first-time entrepreneurs are eligible for a 2-to-1 matching deposit into the lending bank or credit union.
The state’s treasury has announced that more than 150 loans from the eight lenders have qualified for matching deposits so far.
Among the credit unions involved are Navigant Credit Union and People’s Credit Union.
The state of Rhode Island has authorized up to $30 million in deposits in the program.