Governor Carcieri and Citizens Bank launch second Job Bank program to help revitalize local economy
Having successfully created thousands of jobs through its first Job Bank, Citizens will offer New England businesses an additional $150 million in low-interest loans to create 3,750 more jobsPROVIDENCE, R.I. (April 4, 2006) - Governor Donald L. Carcieri and Citizens Bank today announced the launch of a second Citizens ‘Job Bank’, a nationally recognized program designed to spur the creation of new jobs. The new Citizens Job Bank program will establish a $150 million below-market fund that will create up to 3,750 additional full-time jobs in New England.
Created in response to concerns raised by government leaders and Citizens’ customers that they needed help in creating jobs, the Citizens Job Bank program is designed to provide creative, effective solutions to spur local business expansion. It offers companies financing at below-prime rates in return for the creation of new, full-time jobs.
The first $100 million loan program, which was launched in Rhode Island in February 2005, exceeded expectations. Across New England, Citizens approved and closed 89 loans for $93 million and has an additional 37 loans in process for $54 million for a combined total of $147 million. The program has the potential of creating an estimated 3,500 jobs throughout the region.
Two years ago, I was proud to join Joe MarcAurele and Citizens Bank in launching the Citizens Job Bank in Rhode Island which has seen a great deal of success,” said Governor Carcieri.
“By starting the second phase of the Job Bank which provides loans to local businesses, Citizens Bank is continuing its commitment to giving companies the tools they need to prosper. That, in turn, will fuel our state’s economy and create good-paying jobs for deserving Rhode Islanders. I set the goal to create 20,000 jobs during over four years and through this innovative program Citizens Bank is helping me achieve this goal.”
The new loan pool of $150 million requires that borrowers create a minimum of one full-time job for every $40,000 borrowed at an interest rate of 4.99% (rate is subject to change for new applicants). The terms of the loan will require that the specified jobs be created within three years after the funds are borrowed. The program could generate an additional 3,750 new jobs in New England.
“Citizens Bank is proud to again partner with Governor Carcieri and the Rhode Island Department of Economic Development in order to create additional new jobs in the communities we serve,” said Joseph J. MarcAurele, President and CEO of Citizens Bank of Rhode Island. “The Job Bank program has been instrumental in stimulating job growth in Rhode Island and we look forward to its continued success.”
The Citizens Job Bank’s minimum loan size is $240,000 and the maximum is $10 million. Companies eligible for the program include any publicly- or privately-owned business in a broad array of industry sectors including manufacturing, information technology and life sciences. The below-market loans can be used to make investments in machinery, equipment and buildings.
The Rhode Island Economic Development Corporation will administer the loan program and conduct annual audits to certify that borrowers fulfill job creation commitments. The agency also will market the program to companies already in Rhode Island and those businesses considering relocating to the state.
“This program showcases the power of public and private collaboration occurring within our state on many different levels,” said Michael McMahon, executive director, Rhode Island Economic Development Corporation. “I believe that the Citizens Job Bank also represents a creative and proactive approach taken by the private sector to help spur economic development within our state as well as the New England region as a whole. This program has already resulted in 346 jobs being created in our state, and has served as a real catalyst for job growth within our small business community. We look forward to this initiative serving as a further catalyst for future job creation within our state's small business community.”
Companies interested in obtaining more information about the program can log on to www.blueskyri.com or call 1-888-358-0100 (Citizens Bank) or 1-401-222-2601 (RI EDC).
About Citizens Bank of Rhode Island
Citizens Bank of Rhode Island, with $13billion in assets, 78 branches and 147 ATMs, has the largest branch banking network in Rhode Island. It is a subsidiary of Citizens Financial Group, Inc., a $155 billion commercial bank holding company headquartered in Providence, R.I. Citizens has more than 1,600 branches, approximately 3,800 ATMs and more than 26,000 employees in a 13-state retail branch network and and has non-branch retail and commercial offices in about 40 states. Citizens is the eighth-largest commercial banking company in the United States ranked by deposits. Citizens is owned by RBS (The Royal Bank of Scotland Group plc).
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