Citizens Bank launches second Job Bank program to help revitalize local New Hampshire 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 jobsMANCHESTER, NH (April 4, 2006) - 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 New Hampshire in February 2005, exceeded expectations. In New England, Citizens approved and closed 89 loans at $93 million and has an additional 37 loans in process at $54 million for a combined total of $147 million. The program has the potential of creating an estimated 3,500 jobs throughout the region. In New Hampshire, Citizens approved and closed over $20 million in loans to 24 businesses, which will create over 500 new jobs.
“Building an atmosphere that attracts and creates good-paying jobs for our citizens is one of my top priorities. We know that business, not state government, creates jobs. But we also know that when the state partners wisely with the private sector we can grow our economy and attract good-paying jobs for our citizens,” said Governor John Lynch. “I applaud Citizens Bank for expanding its Job Bank program, which has already helped create many new jobs in New Hampshire.”
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 3,750 new jobs in New England.
“Citizens Bank is proud to again partner with Governor Lynch and the Department of Resources and Economic Development in order to create additional new jobs in the communities we serve,” said Cathleen Schmidt, President and CEO of Citizens Bank New Hampshire. “The Job Bank program has been instrumental in stimulating job growth in New Hampshire and we look forward to its continued success.”
The Citizens Job Bank’ 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 New Hampshire Department of Resources and Economic Development will administer the loan program through its Business Resource Center and conduct annual audits to certify that borrowers fulfill job creation commitments. The agency also will market the program to companies already in New Hampshire and those businesses considering relocating to the Granite State.
Companies interested in obtaining more information about the program can log on to www.nheconomy, or contact the New Hampshire Business Resource Center at 603-271-2591 or call Citizens Bank at 1-888-358-0100.
About Citizens Bank New Hampshire
Citizens Bank New Hampshire, with 78 branches and 168 ATMs, is a $10 billion state-chartered, full service commercial bank headquartered in Manchester. 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 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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