In February 2017, Treasurer Magaziner announced the launch of ‘BankLOCAL’, Rhode Island Treasury’s new community deposit program which will move up to $30 million in state deposits to local banks and credit unions. BankLOCAL supports local financial institutions as they lend to small businesses in Rhode Island, supporting economic growth and opportunity in the Ocean State. In November 2019 Treasurer Magaziner announced that an additional $10 million would be available for BankLOCAL-matched deposits.
Rhode Island Treasury has no role in selecting or approving small business borrowers. Lending decisions are made by the participating banks and credit unions that have lending expertise in our communities, and are making loans to small businesses.
Any local bank or chartered Rhode Island credit union is eligible to apply to be part of the program. Participating financial institutions must meet minimum requirements for financial soundness, including proof of FDIC or NCUA insurance, and all state cash deposits must be fully collateralized.
You can learn more about the program, and how to become an eligible lending institution, by reading the Community Deposit Program Guide or by contacting Rhode Island Treasury’s Cash Manager, Jeffrey Thurston, at (401) 462-7642.
Additional financing opportunities for Rhode Island businesses are available within the Rhode Island Commerce Corporation, through their Rhode Island Capital Access Program in partnership with BDC Capital. The Capital Access Program is available for borrowing needs up to $750,000, available with few exceptions for almost all types of commercial loans that are legal in Rhode Island. Loans can be secured by either new or existing businesses for a variety of uses, such as equipment purchases, startup costs, and even working capital lines of credit. Click here for more information.