Grossman Tours East Boston Market Aided Through Loan Program
Purchase of Property Leveraged Through Small Business Banking Partnership
Treasurer tours East Boston's El Valle De La Sultana Market aided through Small Business Program
Treasurer Steven Grossman today toured El Valle De La Sultana Market in East Boston, a recipient of a $172,500 loan made by East Boston Savings Bank leveraged through the Treasury’s Small Business Banking Partnership.
“All across the Commonwealth we are seeing successful businesses like El Valle De La Sultana Market put their entrepreneurial spirit to work through the Small Business Banking Partnership,” said Treasurer Grossman. “By directing additional deposits into Massachusetts community banks and 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 $10 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 husband and wife team of Victor Gallego and Martha Perdomo now own and operate El Valle De La Sultana Market. They had operated the business since 2006 under a rental agreement, but the loan leveraged by the Partnership allowed them to purchase the property in November of last year. The couple owns two other markets of the same name, with one in Somerville and one in Everett. The East Boston location is a 4,400 square-foot commercial facility that employs five people and sells grocery items and meats.
“East Boston Savings Bank is committed to helping small businesses like El Valle De La Sultana Market succeed” says Richard Gavegnano, EBSB Chairman and CEO. “Our participation in the Treasury’s Small Business Banking Partnership has been a positive experience. By providing funding to smaller businesses we hope to help create jobs which helps stimulate the local economy. The Bank is proud to have been able to assist over 15 small business owners with financing to help their business succeed in our communities.”
East Boston Savings Bank operates 24 full-service branches in the greater Boston metropolitan area and offers a variety of deposit and loan products to individuals and businesses located in its primary market, which consists of Essex, Middlesex and Suffolk counties. The bank, which prides itself on community involvement and investments in local small business enterprises, has been in business since 1848.
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.