Rhode Island Treasurer Seth Magaziner's BankLocal program, which supports loans to Rhode Island small business through deposits in local banks and credit unions, today received national recognition from The NewDEAL - winning the organization's 2017 "Future of Business" challenge.
"Small businesses are the backbone of Rhode Island's economy, but too many entrepreneurs struggle to get the loans they need to create jobs and grow," said Treasurer Magaziner. "That's why I started the BankLocal program, which moves millions in state cash to local banks and credit unions when they lend to Rhode Island small businesses."
"I am pleased that BankLocal is being recognized for its role in economic growth and job creation in Rhode Island," continued Treasurer Magaziner.
Former Delaware Governor Jack Markell, co-chair of The NewDEAL, today announced the winners of the "New Ideas" challenge at the organization's annual conference.
"Treasurer Magaziner's efforts in Rhode Island are especially important as capital has become increasingly difficult to come by for small businesses and startups, which are crucial for job creation," said Governor Markell.
The BankLocal program moves a portion of the State's cash into secure accounts at local banks and credit unions based on loans made to small businesses in Rhode Island.
In its first year, BankLocal has moved more than $19 million into local banks and credit unions, supporting loans to more than 175 small businesses in Rhode Island. Loans to 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.
Any local bank or chartered Rhode Island credit union is eligible to apply to be part of the program. Participating financial institutions must meet minimum requirements for financial soundness, including proof of FDIC or NCUA insurance, and all state cash deposits must be fully collateralized.
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The NewDEAL (Developing Exceptional American Leaders), an organization chaired by U.S. Senator Mark Warner and former Delaware Governor Jack Markell, supports the exchange of pro-growth progressive ideas through engagement with top public, private, and non-profit sector officials to spur economic growth that is broadly-earned and sustainable.
Evan England, Director of Communications (401) 222-2240 | (401) 439-2199 (mobile) email@example.com