For Immediate Release - February 08, 2011

Treasury Launches "Move Money" to Boost Loans to Small Businesses

Less than three weeks after taking office, Treasurer Steve Grossman has launched one of his key initiatives to stimulate small business lending and grow private sector jobs in the Commonwealth.

Tightened credit markets in the wake of the 2008 financial crisis, which hit large, money center banks particularly hard, resulted in profound difficulties for small businesses seeking loans. But a number of financial institutions, primarily smaller local and regional banks, have continued to maintain or expand their small business loan portfolios.

The Move Money program seeks to shift state cash deposits under the control of the Treasurer to small, regional, local and community banks that are willing to commit to increasing their volume of small business loans once the guidelines have been finalized following a period of public comment.

According to Treasurer Grossman: "Small businesses are the cornerstone of the Massachusetts economy, making up 85% of businesses in our Commonwealth."

A period of public comment has begun that will conclude at 6:00 PM, Wednesday, February 23. Interested parties can learn details of the proposal and submit their comments by visiting the Treasury Web Site.