For Immediate Release - July 19, 2011

Small Business Banking Partnership Passes $100M Mark

Grossman Commits Additional $100 Million to Meet Robust Demand from Community Banks

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.


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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