For Immediate Release - July 17, 2012

SMALL BUSINESS BANKING PARTNERSHIP PASSES QUARTER BILLION DOLLARS

With Additional Deposit in Belmont Savings Bank, $252,750,000 Now On Tap for New Jobs

Treasurer Steven Grossman announced today that, due to an additional $5 million deposit added to Belmont Savings Bank’s existing deposit of $5 million, the Treasury’s Small Business Banking Partnership now has over a quarter billion dollars on deposit in 47 community banks across the Commonwealth.  The precise amount on deposit is $252,750,000.

            “The Small Business Banking Partnership has been a resounding success, and it’s a great example of an innovative public-private collaborative,” said Treasurer Grossman.  “By making deposits into community banks, we’re promoting loan activity to small creditworthy businesses and creating jobs, opportunity, and economic 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.  According to the most recent reporting data, participating banks have made a total of 1,678 loans worth over $268 million, many of them directly attributable to the Partnership.         

            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.

            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.

 

Small Business Banking Partnership – Participating Banks
   
LocationBankOn Deposit 
ArlingtonLeader Bank NA$10,000,000.00
AyerNorth Middlesex Savings Bank$5,000,000.00
BelmontBelmont Savings Bank$10,000,000.00
BeverlyBeverly Cooperative Bank$1,000,000.00
BostonEast West Bank$5,000,000.00
BostonMercantile Bank and Trust Company$5,000,000.00
BrocktonMutual Bank$5,000,000.00
CambridgeCambridge Savings Bank$5,000,000.00
ChicopeeChicopee Savings Bank$5,000,000.00
DorchesterMeetinghouse Bank$1,000,000.00
East BostonEast Boston Savings Bank$5,000,000.00
EverettEverett Co-operative Bank$5,000,000.00
Fall RiverBankFive$5,000,000.00
Fall RiverBayCoast Bank (formerly Citizens-Union Savings Bank)$5,000,000.00
FitchburgRollstone Bank and Trust$2,500,000.00
GloucesterBankGloucester$5,000,000.00
GreenfieldGreenfield Co-operative Bank$2,000,000.00
HaverhillHaverhill Bank$5,000,000.00
HaverhillPentucket Bank$10,000,000.00
HudsonAvidia Bank$2,000,000.00
HyannisBank of Cape Cod$10,000,000.00
HyannisCape Cod Cooperative Bank$5,000,000.00
LeominsterFidelity Bank$5,000,000.00
LowellLowell Co-operative$5,000,000.00
LowellLowell Five Cent Savings Bank$5,000,000.00
LynnEastern Bank$5,000,000.00
MarlboroughMarlborough Savings$5,000,000.00
MedfordCentury Bank and Trust Company$10,000,000.00
NewburyportNewburyport Five Cents Savings Bank, The$5,000,000.00
NewtonVillage Bank, The$2,000,000.00
North AdamsHoosac Bank$5,000,000.00
OrleansCape Cod Five Cents Savings Bank$10,000,000.00
OxfordHometown Bank, A Co-operative Bank$5,000,000.00
PittsfieldBerkshire Bank$5,000,000.00
ReadingReading Co-operative Bank$5,000,000.00
RocklandRockland Trust Company$5,000,000.00
RocklandSouth Coastal Bank$5,000,000.00
South WeymouthSouth Shore Savings Bank$10,000,000.00
SouthbridgeSavers Co-operative Bank$5,000,000.00
SouthbridgeSouthbridge Savings Bank$5,000,000.00
SpringfieldNuvo Bank and Trust Company$250,000.00
TauntonBristol County Savings Bank$10,000,000.00
TauntonMechanics' Co-operative Bank$5,000,000.00
WakefieldSavings Bank, The$2,000,000.00
WalpoleWalpole Co-operative Bank$10,000,000.00
WestfieldWestfield Bank$5,000,000.00
WorcesterBay State Savings Bank$5,000,000.00
  $252,750,000.00

 

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