Pleased by the impact of its $100 million “Job Bank” loan program, Citizens Bank on Tuesday launched a second “Job Bank” initiative, this time worth $150 million, aiming to help New England companies create as many as 3,750 more jobs.
The first Job Bank, which was launched in Rhode Island in February 2005, has “exceeded expectations,” according to bank officials. So far, Citizens has closed 89 loans for $93 million, and it has another 37 worth $54 million in the process, for a combined total of $147 million.
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Those loans have the potential to create 3,500 jobs, Citizens said.
At an event to celebrate the start of the new Job Bank, Gov. Donald L. Carcieri praised Citizens for “giving companies the tools they need to prosper.” That, in turn, he said, “will fuel our state’s economy.”
“The Job Bank program has been instrumental in stimulating job growth in Rhode Island,” said Joseph J. MarcAurele, president and CEO of Citizens Bank of Rhode Island. “We look forward to its continued success.”
The new loan pool requires that borrowers create a minimum of one full-time job for every $40,000 borrowed at an interest rate of 4.99 percent (the rate is subject to change for new applicants). The terms of the loan will require that the specified jobs be created within three years after the funds are borrowed.
The minimum loan size is $240,000 and the maximum is $10 million. Companies eligible for the program include any publicly or privately owned business in sectors such as manufacturing, information technology and life sciences. The below-market loans can be used to make investments in machinery, equipment and buildings.
The R.I. Economic Development Corporation will administer the program and conduct annual audits to certify that borrowers fulfill job creation commitments. It will also market the program to companies in Rhode Island and to businesses considering relocating here.
Michael McMahon, EDC executive director, said the program “showcases the power of public and private collaboration” to promote economic development.
“This program has already resulted in 346 jobs being created in our state, and has served as a real catalyst for job growth within our small-business community,” McMahon said. “We look forward to this initiative serving as a further catalyst for future job creation within our state’s small-business community.”
