Banks announce financial commitment
NEW BEDFORD – Mayor Scott W. Lang and New Bedford Economic Development Council executive director Matthew A. Morrissey announced a $4,645,000 million recapitalization of the NBEDC loan pool that supports the lending program for city small business development. The announcement was made at a press conference April 3rd in the Charles S. Ashley Room in New Bedford City Hall with representatives of the eight participating banks, members of the City Council, city department heads and members of the NBEDC board of directors and the Council, economic development partners, business owners, and interested citizens attending. The loan recapitalization announced today nearly doubles the existing loan pool.
The eight banks contributing to the loan pool are: Citizens Bank, Bank of America, Sovereign Bank, Webster Bank, Bank Five, Citizen Union Savings Bank, Slade’s Bank and Rockland Trust.
In addition, the community organization-based Pelham Fund added to the loan pool.
“The major commitments of these banks and the community organization to support business development in the City of New Bedford, strengthens our economy one business at a time. The cumulative effect is good news for job growth in New Bedford,” said Mayor Lang. “We are very grateful for their participation and we commend them for their important work in building the future of this city.”
“Citizens Bank is pleased to partner with Mayor Lang and the Economic Development Council on this important program,” said Robert E. Smyth, Chairman, President and CEO of Citizens Bank of Massachusetts. “As the number-one Small Business Administration lender in Massachusetts and throughout New England, Citizens Bank recognizes that small business is the engine that fuels economic growth, and we are proud to make this investment in the future of the New Bedford economy.”
Last year the NBEDC loan pool underwrote a total of 34 loans totaling $2,240,470 leveraging $18,998,000 in private investment. These funds represent loans to start-up and existing companies for capital financing, gap financing and fishing loans for equipment and retrofitting vessels to comply with safety regulations. Lending in the last 6 months is up 230%.
“Investing, and in many cases reinvesting, in the recapitalization of the NBEDC loan pool in this very substantial way, is yet further evidence of the faith this community has in itself and the NBEDC,” said Tony Sapienza, newly elected chairman of the NBEDC board of directors. “I see the combined effort of so many lending institutions as an indication of serious financial commitment to business and workforce opportunity in New Bedford.”
Mr. Morrissey said, “It’s small business that creates two out of every three new jobs. The funds will help existing business, driving job creation and retention. We are grateful to each organization who stepped forward to create greater opportunity for small business growth in New Bedford.”
Peter Selley, Bristol County Savings Bank Senior Vice President and chairman of the NBEDC loan committee said “New Bedford’s small businesses need working capital and equipment financing that these monies provide. For all of my bank colleagues on the loan committee, we say thank you to each of the participating banks for this endorsement of the work of the NBEDC.”
For more information on how to apply for funds through the NBEDC, please contact Nancy Gibeau at 508-991-3122 x 13.
NBEDC 2007 Loan Pool Recapitalization
Citizens Bank $1,500,000
Bank of America $750,000
Sovereign Bank $575,000
Webster Bank $500,000
Bank Five $350,000
Citizen Union Savings Bank $350,000
Slade’s Bank $350,000
Rockland Trust $250,000
Pelham Fund $20,000