Hartford, CT (March 22, 2005) - Citizens Bank of Connecticut President and CEO Richard Barry today announced a $100 million fund that will offer very low-interest loans to companies that commit to creating or expanding jobs in New England.
The Citizens Job Bank, the first of its kind in Connecticut, will help create more than 2,500 new jobs in Connecticut and throughout New England.
The new, region-wide loan pool requires borrowers to create a minimum of one full-time job for every $40,000 borrowed at the fixed interest rate of 3.50 percent (2.00 percent below prime). The terms of the loan will require that the specified jobs be created within three years after the funds are borrowed.
"Citizens Bank has taken an innovative and positive step by creating a loan program that offers incentives to companies that are creating or expanding jobs in Connecticut. Providing companies that are looking to grow with access to low-interest financing will help stimulate business expansion and job creation in our state. Creating jobs for the people of Connecticut is the top priority of my administration and the Citizens Job Bank loan program will help us accomplish this goal and provide a real boost to our economic development efforts," said Governor M. Jodi Rell.
According to a Department of Labor report issued last week, the State of Connecticut reportedly gained more than 22,000 jobs in 2004, but still needs to add 39,000 more new jobs to reclaim the 61,400 jobs that were lost during the recession.
"Connecticut and New England as a whole was hit hard by the most recent recession. We are proud to serve as a financial engine in Connecticut to encourage much-needed job growth. Citizens is confident this program will help create 2,500 new jobs throughout the New England region," said Barry.
"Connecticut has only recovered 36 percent of the jobs lost in the last recession versus 90 percent recovery nationwide, so efforts like this unique private-public partnership aimed at creating job growth in our state is welcome news," said Peter Gioia, Connecticut Business & Industry Association economist.
The minimum loan size is $240,000 and the maximum is $10 million. The loans will be available to qualified borrowers starting this month. Companies eligible for the program include any public or privately owned business in a broad array of industry sectors, including manufacturing, information technology and life sciences.
The Connecticut Department of Economic Development will administer the loan program and will certify that borrowers fulfill job creation commitments. The agency will also market the unique program to companies already in Connecticut and those businesses considering relocating to the State.
The initiative being announced today also complements the Citizens Housing Bank, a loan pool launched last spring to stimulate 1,200 new housing units throughout New England by offering a very low interest rate to nonprofit developers.
Companies interested in obtaining more information about the program can log on to www.decd.org or call 1-888-358-0100 (Citizens Bank) or The Department of Economic Development office at 860-270-8207
Citizens Bank of Connecticut is a $4 billion bank with 48 branches and 56 ATMs in Connecticut. Headquartered in New London, it is a strong retail bank and a lending resource for the region's business community, with commercial lending offices in Hartford, Middletown, New Haven and New London. It has more than 400 employees.
Citizens Bank of Connecticut is a subsidiary of Citizens Financial Group, Inc., a $137 billion commercial bank holding company headquartered in Providence, R.I. Citizens has more than 1,600 offices, approximately 2,800 ATMs and approximately 26,000 employees in 13 states. It operates in Connecticut, Delaware, Illinois, Indiana, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island and Vermont. Citizens is the 12th largest commercial banking company in the United States in asset size and ninth when ranked by deposits. Citizens is owned by RBS (The Royal Bank of Scotland Group plc).