Bargain loans target pockets of need
Citizens Bank of Massachusetts has unveiled a new plan to help small businesses in lower income areas survive and expand.
In collaboration with the Department of the State Treasury, the program will offer $25 million in below-market loans to businesses across the state. The funds target areas in the state suffering from a lack of employment opportunities, says Robert Smyth, president and CEO of Citizens Bank of Massachusetts."It’s a first-come, first-serve basis, and 20 companies already have expressed interest," says Smyth.
Together with Treasurer Tim Cahill, Smyth announced the new funding at the Martin Luther King, Jr. Business Empowerment Center in Worcester. The Center assists new businesses in the early stages of development.
"With the city moving towards the biotech industry, we need small business to drive development," says Jay Mattier, vice president of business development at the Center.
The creation of the new loan pool follows new research by Cahill’s Job Growth Task Force and The Massachusetts Community & Banking Council. Its conclusion: More and more small firms are having trouble accessing the capital they need. "We’re hoping it means expansion in job growth," says Cahill.
Of the loans available, the minimum amount is $10,000, and the maximum $500,000. Businesses are required to be located in a low to moderate-income area, and anticipation is high that the monies will filter into Worcester. Assistant City Manager Julie Jacobson agrees the loan pool is central to Worcester’s growth.
"We’re trying hard to keep our young population here," says Jacobson.
Jeffrey T. Lavery can be reached at jlavery@wbjournal.com
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