Small Business Banking Partnership Passes $100M Mark

Treasurer Steven Grossman today announced that the Small Business Banking Partnership has made $106 million in deposits to 23 Massachusetts community banks and committed another $100 million to this program that leverages small business loans. The Treasurer made the announcement at the Boston Business Journal's 3rd Annual CFO of the Year award, which he keynoted.

"The Small Business Banking Partnership has been a resounding success, and it's a great example of an innovative public-private partnership," said Treasurer Grossman. "At no cost to the taxpayer, the program 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 initiative takes 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-based community 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 creditworthy Massachusetts businesses. Over 50 banks are now participating in the program, many of which have already made loans to small businesses leveraged through the new deposits.

Grossman said that he had initially set aside $100 million for the Small Business Banking Partnership when the program kicked off in May of this year. With a full $106 million now on deposit statewide in community banks, Grossman added another $100 million to the program, bringing the total commitment to $200 dedicated to the Partnership.

All deposits that the Treasury will make in the 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.

A list of banks participating in the Partnership is attached.

###

SMALL BUSINESS BANKING PARTNERSHIP
PARTICIPATING BANKS

Arlington	Leader Bank	MOD
Ayer	North Middlesex Savings Bank	MOD
Belmont	Belmont Savings Bank	MOD
Beverly	Beverly Cooperative Bank	V.A.
Boston	East West Bank	Sent
Boston	Mercantile Bank and Trust Company	MOD
Chicopee	Chicopee Savings Bank	MOD
East Boston	East Boston Savings Bank	V.A.
Easthampton	Easthampton Savings Bank	V.A.
Everett	Eagle Bank	V.A.
Everett	Everett Cooperative Bank	MOD
Fall River	Bank Five	MOD
Fall River	Citizens Union Savings Bank	MOD
Gloucester	Cape Ann Savings Bank	V.A.
Gloucester	Bank of Gloucester	MOD
Greenfield	Greenfield Cooperative Bank	Sent
Greenfield	Greenfield Savings Bank	V.A.
Haverhill	Pentucket Bank	MOD
Haverhill	Haverhill Bank	MOD
Hingham	Hingham Institute for Savings	V.A.
Hyannis	Bank of Cape Cod	MOD
Hyannis	Cape Cod Cooperative Bank	Sent
Leominster	Fidelity Bank	MOD
Lowell	Lowell Cooperative Bank	V.A.
Lynn	Eastern Bank	Sent
Medford	Century Bank	MOD
Milford	Milford National Bank	Sent
Newburyport	Newburyport 5 Cent Savings Bank	MOU
North Adams	Hoosac Bank	Sent
Orleans	Cape Cod Five	Sent
Oxford	Hometown Bank	V.A.
Pittsfield	Berkshire Bank	V.A.
Reading	Reading Cooperative Bank	MOD
Rockland	Rockland Trust Company	Sent
Rockland	South Coastal Bank	MOD
Rockport	Rockport National Bank	Sent
South Weymouth	South Shore Savings Bank	MOD
Southbridge	Southbridge Savings Bank	Sent
Springfield	Nuvo Bank	MOU
Springfield	Hampden Bank	Sent
Taunton	Bristol County Savings Bank	MOD
Taunton	Mechanics Cooperative Bank	MOD
Wakefield	The Savings Bank	MOD
Walpole	Walpole Cooperative Bank	MOD
Ware	Country Bank	V.A.
Westfield	Westfield Bank	Sent
Whitinsville	Unibank	Sent
Woburn	Northern Bank & Trust	Sent
Worcester	Bay State Savings Bank	MOD
Worcester	Commerce Bank	Sent

Key
MOD	- Money on deposit
MOU	- Memorandum of understanding
Sent	- MOU has been sent to bank for signature
V.A.	- Verbal agreement to participate/paperwork being drawn up