Rhode Island moves $15M in deposits to local banks, credit unions

GENERAL TREASURER Seth Magaziner, left, celebrates moving $15 million in state deposits to local banks and credit unions at Budare Grille in Central Falls in August./ COURTESY R.I OFFICE OF THE GENERAL TREASURER
GENERAL TREASURER Seth Magaziner, left, celebrates moving $15 million in state deposits to local banks and credit unions at Budare Grille in Central Falls in August./ COURTESY R.I OFFICE OF THE GENERAL TREASURER

PROVIDENCE –  The state has moved $15 million in deposits to local banks and credit unions as part of an initiative to spur small-business lending.

R.I. General Treasurer Seth Magaziner in February launched the initiative, dubbed BankLocal, saying he would match up to $30 million in deposits for local banks and credit unions that made loans with Rhode Island small businesses.

The treasurer on Wednesday celebrated the halfway mark exactly six months after launch by holding a press conference in Central Falls.

“Our BankLocal program is improving access to capital for Rhode Island small businesses by depositing cash at local banks and credit unions that are supporting Rhode Island entrepreneurs,” Magaziner said in prepared remarks.

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Eight Rhode Island banks and credit unions are participating in the program, and the $15 million has been deposited to match 150 qualifying local small-business loans, according to state figures.

Magaziner held the event at Budare Grille where owner Jairo Echeverry has benefited directly from the initiative, as Navigant Credit Union made a loan with the restaurant and was rewarded with state deposits.

“I am happy that the Treasurer’s Office is working to provide financial support to small businesses through the BankLocal program,” he said in a statement.

The state money does not include pension funds and lenders who make loans with women and minority-owned businesses and startups founded by first-time entrepreneurs are eligible for a two-to-one match up to $250,000 per loan.

The state is authorized to deposit up to $30 million and treasury spokesman Evan England said Magaziner would consider raising that cap once the initiative got closer to that amount. The state typically has between $500 million and $1 billion in cash deposits.

The participating financial institutions include Bank Rhode Island, Bristol County Savings Bank, Centreville Bank, Customer’s Bank, Home Loan Investment Bank, Navigant Credit Union, People’s Credit Union and The Washington Trust Co.

“I am committed to using the Treasurer’s Office to encourage economic growth and job creation in Rhode Island,” Magaziner said.

Eli Sherman is a PBN staff writer. Email him at Sherman@PBN.com, or follow him on Twitter @Eli_Sherman.

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