State treasurer’s small business loan program expands

PROVIDENCE, R.I. (AP) - Rhode Island Treasurer Seth Magaziner’s small business loan program is expanding.

Magaziner says his “BankLOCAL” initiative now includes two new banks, BankNewport and Freedom National Bank, bringing the total number of participating banks and credit unions to 10.

The program moves the state’s money, which has historically been deposited in big national and international banks, to local credit unions and banks to incentivize them to make loans to small businesses in Rhode Island.

When a participating bank or credit union makes a $100,000 loan to a small business in Rhode Island, the state makes a $100,000 deposit at that bank or credit union.

Magaziner says since the program launched in 2017, BankLOCAL has moved more than $26 million back to Rhode Island, supporting loans to more than 235 small businesses.