Charter One and Governor Granholm announce first recipient of the Job Creation Loan Program in Michigan
US Farathane Corporation will create 150 new jobs with funding from the Charter One Job Creation Loan ProgramDetroit (May 22, 2006) - Gov. Jennifer Granholm and Sandra Pierce, President and CEO, Charter One Bank, Michigan, today announced that US Farathane Corporation is the first recipient of a loan from the Charter One Job Creation Loan Program, an initiative that offers below-market rate loans to companies that commit to creating or expanding jobs in Michigan.
US Farathane will borrow $6 million to expand its workforce to accommodate increased demand and production. The company is a leading supplier in the design and manufacture of highly engineered plastic injection-molded and extruded components in a variety of industries including automotive. Under the terms of the low 4.99 percent loan, US Farathane has pledged to create 150 new, full-time jobs over the next three years.
“US Farathane is a model company, whose success contributes to the economic vitality of our region,” said Sandra Pierce, President and CEO, Charter One Bank, Michigan. “Charter One is proud to support US Farathane’s continued growth in our state and we commend the company for its commitment to job creation.”
US Farathane’s corporate headquarters are located in Sterling Heights, Mich., which houses both a manufacturing plant and technology center. US Farathane has four manufacturing facilities located in Utica, Madison Heights, Plymouth, and Almont, Mich., as well as Jackson, Tenn. For nearly three decades, US Farathane has provided unique engineered solutions and patented products to some of the largest corporations in the world. The 150 new high-tech jobs created by the Charter One Job Creation Loan Program are in a broad range of positions, including operators in the manufacturing facilities to engineers and R&D specialists in the technology center.
“Providing growing companies like US Farathane with access to capital is vital to expanding Michigan’s economy and creating jobs for our work force,” said Granholm. “These loans are an important piece of my comprehensive economic plan to keep the jobs we have today and growing jobs and the economy for the future.”
The Charter One Job Creation Loan Program is a new partnership in which Charter One is offering $200 million in loan funds at a below-market interest rate to companies that commit to creating or expanding jobs in Michigan. Created in conjunction with Governor Granholm, the program is an integral part of the governor’s comprehensive Jobs Today, Jobs Tomorrow economic plan. The goal of the Job Creation Loan Program is to create 5,000 new jobs in the state over the next three years by helping companies expand their operations or relocate to Michigan.
The Charter One Job Creation Loan Program requires borrowers to create a minimum of one full-time job for every $40,000 borrowed at the fixed interest rate of 4.99 percent (currently 3.01 points below prime). The minimum loan size is $1 million and the maximum is $10 million. Companies eligible for the program include any public or privately owned business in a broad array of industry sectors, including manufacturing, distribution centers, emerging sectors, and the 21st Century Jobs Fund competitive-edge technologies: life sciences; alternative energy; advanced automotive, manufacturing and materials; and homeland security and defense.
“We are excited to be the first company in Michigan to take advantage of the Charter One Job Creation Loan Program,” said Andrew Greenlee, CEO, US Farathane. “These funds will enable us to continue our growth and we look forward to expanding our operations here for years to come.”
The Michigan Economic Development Corporation is marketing the unique program to companies already in Michigan and those businesses considering relocating to the state. MEDC administers the loan program and will conduct annual audits to certify that borrowers fulfill job creation commitments.
Companies interested in obtaining more information about the program can log on to www.michigan.org or contact the MEDC at 888-522-0103.
About Charter One Bank, N.A.
Charter One Bank, N.A., is a $41 billion bank operating in Illinois, Indiana, Michigan and Ohio. It has 480 branches and more than 800 ATMs. It has 120 branches and 135 ATMs in Michigan. Charter One 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 3,700 ATMs and more than 26,000 employees in a 13-state retail branch network 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 as of September 30, 2005. Citizens is owned by RBS (The Royal Bank of Scotland Group plc).
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