Massachusetts Treasurer Steven Grossman says that he is going to conduct meeting with Springfield Mayor Domenic J. Sarno and bankers from Springfield to move some of the state deposits to local community banks to encourage them to give loans to small businesses. Similar meetings will also be held in Holyoke and Greenfield. Under the Grossman’s program, Berkshire Bank that has 10 offices in Hampden County intends to apply for the share of deposits.
Thomas R. Creed, vice president of Berkshire Bank says, “The program recognizes the role that local banks play in supporting small businesses. It is very valuable.”
The deposits shall be provided on a first come, first serve basis. The deposit will be made available with a one-year contract and a possible renewal after one year. Creed commented that by offering deposits in local banks, the state is supporting capital suppliers in the cause of small business growth.
Kevin F. Kiley, Vice President of the Massachusetts Bankers Association in Boston said that what Grossman is doing is a positive program for small businesses, tax payers and banks. But, the program is not for all banks. Some banks may not need deposits right away. There is, however, no doubt that the program will provide additional money for small business loans. Kiley comments, “I think the treasurer has clearly capitalized on an opportunity to work with community banks.”
This article was submitted by Rohit Arora, co-founder of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to