Small Business Banking Partnership Now Numbers 50 Banks
Hampden Bank in Springfield Signs on to Treasury’s Job-Creating Program
Treasurer Steven Grossman today announced that Hampden Bank in Springfield has become the fiftieth bank to join the Small Business Banking Partnership, a program that has deposited more than $272 million in Massachusetts community banks to help leverage small business loans and job creation across the Commonwealth.
“The Partnership is all about creating jobs and opportunity and putting our public resources to their optimal use,” said Grossman. “Hampden Bank joins 49 other banks in every corner of the Commonwealth that are committed to supporting small business and the entrepreneurial spirit that make our communities and our state great places to live.”
The Small Business Banking Partnership uses 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 community banks. In exchange for the infusion of new deposits, the banks sign a Memorandum of Understanding signaling their intent to enhance their loan portfolios to small credit-worthy Massachusetts businesses. According to the most recent reporting data as of June 30, 2012, participating banks have made more than 2,500 loans worth over $365 million, many of them directly attributable to the Partnership.
"Hampden Bank is proud to be a participant in the Treasury's Small Business Banking Partnership program as implemented by Treasurer Grossman," stated Glenn S. Welch, President & COO of Hampden Bank. “As a lender of choice for local businesses, this program allows us to further expand our efforts to positively impact the growth and vitality of small businesses throughout the Valley for the benefit of all,” Welch went on to say.
When it was created last year, the Partnership was envisioned as a $100 million program with a deposit limit of up to $5 million per bank. Because of the overwhelmingly positive feedback that Treasury received from participating banks and the demonstrable increase in loan activity and job creation, the Partnership was expanded to allow more banks to participate and to increase the maximum deposit amount. Participating banks are required to post their loan activity on their website every quarter, information that is also posted on the Treasury website.
The Small Business Banking Partnership kicked off in Haverhill in May, 2011 with a $5 million deposit in Pentucket Bank. 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.
Hampden Bank, headquartered in Springfield with ten branches throughout the region, prides itself on community involvement and investments in local small business enterprises. The bank has been in business since 1852.
A complete list of banks participating in the Partnership is attached.