PROVIDENCE, R.I. – State officials unveiled an economic stimulus package yesterday that centers on $200 million in loans and loan guarantees to raise capital for small businesses, including a $165 million package offered by eight credit unions and banks.
The funds will be lent through the state’s Economic Development Corporation, which will monitor the loans and the progress of the program.
The participating institutions and the amount of funds they have committed are: Coastway CU, $25 million; Navigant CU, $5 million; BankNewport, $25 million; Bank Rhode Island, $25 million; Citizens Bank, $25 million; Webster Bank, $25 million; The Washington Trust Co., $20 million; and Randolph Savings Bank, $15 million.
The stimulus plan will also include recapitalization of the development corp. to include $2 million in new funding form local credit unions and banks and $5 million the corp. is requesting in a federal grant; expansion of the small business loan fund micro-loan program; and partnering with the U.S. Small Business Administration, which will guarantee $25 million in loans.
