For Immediate Release - March 01, 2012

Grossman Announces Loan to Haverhill Manufacturer Leveraged Through Small Business Banking Partnership

New England Die Cutting to Upgrade Equipment Through Loan from Pentucket Bank

 

Treasurer Grossman at New England Die Company

Treasurer Grossman joins Vice President David Abare, of New England Die Cutting on a tour of the manufacturing facility.

Treasurer Steven Grossman today announced that Pentucket Bank of Haverhill has extended a $150,000 loan to New England Die Cutting to purchase a new automated die cutting machine that will enhance the company’s competiveness, profitability, and job-creating potential.  The loan was leveraged through the Treasury’s Small Business Banking Partnership initiative.

“The Small Business Banking Partnership is a victory for the Commonwealth, the small businesses that support our economy, and Massachusetts community lenders,” said Treasurer Grossman.  “The Partnership puts the reserve resources of the Treasury to their optimal use, creating jobs, opportunity, and prosperity throughout the Commonwealth.”

The Partnership directs deposits traditionally held by large national and international banks into Massachusetts community banks with the understanding that these banks will expand their loan portfolios to credit-worthy Massachusetts small businesses.  In May of 2011, Pentucket Bank accepted a $5 million deposit from the program.  Since that time, the bank has extended 34 loans totaling over $4.5 million, many of them leveraged through the Small Business Banking Partnership.

New England Die Cutting, Inc. and its division, American EMI Solutions, are advanced manufacturers supplying gaskets, seals, and insulators.  They also manufacture electromagnetic interference (EMI) shielding for the military/aerospace, electronics, medical, automotive, and commercial sectors.  The Haverhill-based businesses service many Fortune 500 companies with a need to protect their highly sensitive electronic components from leakage against water, salt spray, or electronic interference from other electronics, all of which can compromise the performance of equipment.  The companies employ 32 individuals, most of them highly trained and skilled, and they have a reputation as highly-regarded competitors in their specialized markets.

“Access to capital is essential to a small business like ours to update our equipment and keep up with technology.  It allows us to facilitate growth by offering competitive pricing to our customers,” said Kimberly Abare, President of New England Die Cutting and American EMI Solutions.  “Over the last five years, we have reinvested in new equipment and driven Lean Manufacturing Initiatives and Efficiencies here, which has helped to cut cost and lead time, improve work flow and production while decreasing defects and waste.  This new piece of equipment financed by Pentucket Bank allows us to manufacture parts faster and more efficiently, maintain our reputation as a high-quality competitor, and offer our customers more affordable high-end products.”

Grossman credited a 2010 conversation with Scott Cote, the president of Pentucket Bank, with first giving him the idea for the Small Business Banking Partnership.  At the time, Cote pointed to the high-volume of small business lending that community banks were making in the depths of the recession, prompting Grossman to propose an initiative that would reward this loan activity through strategic and targeted deposits of Treasury funds.

“The Small Business Banking Partnership has been a “win across the board” for the Massachusetts community banking industry and for small businesses across the state that are benefitting from increased liquidity and capital which is being reinvested locally to creditworthy companies,” said Cote.  “Treasurer Grossman followed through on his commitment of getting more liquidity into the banking system locally where it can really benefit local businesses who want to expand and create new jobs to meet their customer’s demand.  A great example of this is the growth and expansion that Kimberly and David Abare are experiencing at their companies.  They are a great example of local small business owners who are controlling their own destiny through hard work and creativity in a difficult economy.”

Presently, 40 banks from across the state are participating in the Small Business Banking Partnership, with over $178 million of funds on deposit.  All deposits that the Treasury makes in community banks are protected through either insurance or collateral, and the interest rate on the money is comparable to what the Commonwealth receives from out-of-state financial institutions.

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A list of banks committed to participating in the Partnership is attached.

Bank of Cape Cod

 $        5,000,000.00

BankFive

 $        5,000,000.00

BankGloucester

 $        5,000,000.00

Bay State Savings Bank

 $        5,000,000.00

Belmont Savings Bank

 $        5,000,000.00

Beverly Cooperative

 $        1,000,000.00

Bristol County Savings Bank

 $        5,000,000.00

Cambridge Savings Bank

 $        5,000,000.00

Cape Cod Cooperative

 $        5,000,000.00

Cape Cod Five Cents Savings Bank

 $        5,000,000.00

Century Bank and Trust Company

 $        5,000,000.00

Chicopee Savings Bank

 $        5,000,000.00

(Citizen's Union ) Bay Coast Bank

 $        5,000,000.00

East Boston Savings

 $        3,000,000.00

East West Bank

 $        5,000,000.00

Eastern Bank

 $        5,000,000.00

Everett Co-operative Bank

 $        5,000,000.00

Fidelity Bank

 $        5,000,000.00

Greenfield Co-operative Bank

 $        2,000,000.00

Haverhill Bank

 $        5,000,000.00

Hometown Bank

 $        5,000,000.00

Hoosac

 $        2,000,000.00

Leader Bank, N.A.

 $      10,000,000.00

Lowell Five

 $        5,000,000.00

Mechanics' Co-operative Bank

 $        5,000,000.00

Meetinghouse Bank

 $        1,000,000.00

Mercantile Bank and Trust Company

 $        5,000,000.00

 Newburyport Five Cents Savings Bank, The

 $        5,000,000.00

North Middlesex Savings Bank

 $        5,000,000.00

Nuvo Bank and Trust Company

 $           250,000.00

Pentucket Bank

 $        5,000,000.00

Reading Co-operative Bank

 $        5,000,000.00

Rockland Trust

 $        5,000,000.00

Rollstone

 $        2,500,000.00

Savers Bank

 $        5,000,000.00

Savings Bank, The (Wakefield)

 $        2,000,000.00

South Coastal Bank

 $        5,000,000.00

South Shore Savings Bank

 $        5,000,000.00

Walpole Co-operative Bank

 $        5,000,000.00

Westfield Bank

 $        5,000,000.00

 

 $    178,750,000.00