Grossman Extends Application Deadline for Small Business Banking Partnership

Citing a strong response from the small banking community, Treasurer Steven Grossman today announced that he is extending the deadline by which community banks must apply for membership in the Small Business Banking Partnership from September 1, 2011 to January 1, 2012.

"The response to the Partnership has outpaced even our optimistic expectations - this has really proven to be a win-win-win for government, community banks, and small businesses," said Treasurer Grossman. "It directs additional deposits into Massachusetts banks, encouraging them to lend to Massachusetts small businesses. The Partnership puts the reserve resources of the Treasury to their optimal use, creating jobs, opportunity, and prosperity throughout the Commonwealth."

The Small Business Banking Partnership moves Treasury cash reserve funds typically held by large national and international financial institutions and deposits them in amounts of up to $5 million in Massachusetts banks. In exchange for the infusion of new deposits, the banks sign a Memorandum of Understanding (MOU) signaling their intent to enhance their loan portfolios to small credit-worthy Massachusetts businesses.

The first deposits were made in early May of this year, and the Treasury quickly surpassed the initial $100 million that had been set aside for the program, prompting it to designate another $100 million to the initiative. Presently, the Partnership has over $121 million on deposit with 27 community banks across the Commonwealth, many of which have already extended new loans leveraged through the deposits to small businesses.

In addition to the banks with Treasury money on deposit, 24 banks statewide have made a commitment to participate in the Small Business Banking Partnership and are in varying stages of signing up for the program. Treasurer Grossman said he has been travelling across the state to promote the program with bank officials, with an eye toward ensuring that all community banks are aware of the benefits of the Partnership before the application period closes on the newly extended deadline of January 1, 2012.

"We're confident that the Partnership will continue to generate interest, and we wanted to give as many banks as possible an opportunity to sign up, strengthen their business, and assist us in our job creation goals," said Grossman.

All deposits that the Treasury makes in these community banks are protected through either insurance or collateral, and the interest rate on the money is comparable to what the Commonwealth receives at out-of-state financial institutions.

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A list of community banks participating in the Partnership is attached.

SMALL BUSINESS BANKING PARTNERSHIP
PARTICIPATING BANKS AS OF AUGUST 16, 2011

Arlington	Leader Bank
Ayer	North Middlesex Savings Bank
Belmont	Belmont Savings Bank
Boston	East West Bank
Boston	Mercantile Bank and Trust Company
Chicopee	Chicopee Savings Bank
Everett	Everett Cooperative Bank
Fall River	Bank Five
Fall River	Citizens Union Savings Bank
Gloucester	BankGloucester
Haverhill	Pentucket Bank
Haverhill	Haverhill Bank
Hyannis	Bank of Cape Cod
Leominster	Fidelity Bank
Medford	Century Bank
Newburyport	Newburyport Five Cents Savings
Orleans	Cape Cod Five
Reading	Reading Cooperative Bank
Rockland	South Coastal Bank
South Weymouth	South Shore Savings Bank
Springfield	Nuvo Bank
Taunton	Bristol County Savings Bank
Taunton	Mechanics Cooperative Bank
Wakefield	The Savings Bank
Walpole	Walpole Cooperative Bank
Westfield	Westfield Bank
Worcester	Bay State Savings Bank