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. The goal of the program is to support local financial institutions as they lend to small businesses in Rhode Island, supporting economic growth and opportunity in the Ocean State.
Deposits into participating banks and credit unions will typically match the amount lent to qualified small businesses in Rhode Island, who employ fewer than 100 employees. Loans to first time business owners, veteran-owned businesses, and women and minority-owned businesses are eligible for a 2-to-1 matching deposit into the lending bank or credit union - up to $250,000 per loan.
In its first year, Treasurer Magaziner's BankLocal program matched loans for nearly 200 small business loans across the state, depositing more than $22 million into local banks and credit unions. 24% of the loans matched with BankLocal deposits have been to women and minority borrowers.
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.
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. If you are a small business owner in Rhode Island and would like to apply for a loan, please contact one of these participating financial institutions:
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, Kerri Baker, at (401) 462-7642.
If you represent a qualified lending institution and need to submit a deposit request, please fill out the Community Deposit Form. You can email the form directly to our Cash Management team at firstname.lastname@example.org.