Citizens Job Bank
4/14/2005
In March, Citizens Bank announced the formation of a $100 million loan pool to help public and private companies create new jobs and pursue new business opportunities. The aim of the Citizens Job Bank is to create some 2,500 jobs throughout its New England market area through very low interest rate lending to companies that commit to creating a specific number of new jobs.
The loan pool requires borrowers to create a minimum of one full-time job for each $40,000 borrowed at a fixed interest rate of 3.5 percent – two whole points below prime. The 3.5 percent rate is guaranteed for five years, although an individual loan’s term could exceed that time limit.
Loan terms also require that the agreed-upon jobs be created within 36 months of the company receiving loan proceeds. Minimum loan volume is $240,000, which would guarantee six new full-time jobs. Maximum loan volume is $10 million.
The loan program is administered by the state’s Department of Economic and Community Development, which will certify that borrowers fulfill job creation commitments. If a borrower fails to keep its pledge, the interest rate on the loan will revert to a market rate.
More information about the program is available by calling 888-358-0100.
