February 3, 2005
ROMNEY AND CITIZENS BANK ANNOUNCE JOB CREATION PROGRAM
“Citizens Job Bank” offers $100 million loan fund for New England businesses
BOSTON – Governor Mitt Romney and Citizens Bank of Massachusetts President and CEO Robert Smyth 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 the Bay State, will help create more than 2,500 new jobs in Massachusetts and throughout New England.
The new loan pool requires borrowers to create a minimum of one full-time job for every $40,000 borrowed at the fixed interest rate of 3.5 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.
“The Citizens Job Bank will boost economic activity in Massachusetts and help companies grow and thrive,” said Romney. “Holding the line on taxes and maintaining a business-friendly environment are among our highest priorities to ensure that more people will be working.”
The minimum loan size is $250,000 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 Governor and Citizens Bank share a strong commitment to developing programs that enrich the lives of Massachusetts residents. Partnering with the state to create a loan pool for the specific purpose of creating jobs helps us deliver on this very important mission,” said Smyth. “We are proud to serve as a financial engine in Massachusetts and pledge to help create 2,500 new jobs throughout the New England region.”
Today’s announcement follows Romney’s State of the Commonwealth address in which he cited job growth as a top priority for Massachusetts in 2005. 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.
Citizens Job Bank loans are designed to be an integral part of the Governor’s economic stimulus and jobs bill, which will be filed later this month. The plan will include new proposals to stimulate economic activity, such as expanding job creation incentives and workforce education, updating pro-growth tax policies and putting in place a complete sales team and marketing effort.
Roger Berkowitz, President and CEO of Legal Seafood and a Citizens Bank customer, is among the Massachusetts business leaders interested in taking advantage of the new job bank.
“As a business owner in Massachusetts, I’m very pleased to hear of Citizens’ initiative in response to Governor Romney’s mandate for job growth in 2005,” said Berkowitz. “This proves that business and government can work creatively to benefit the Commonwealth and its residents.”
The Massachusetts Department of Business and Technology will administer the loan program and conduct annual audits to certify that borrowers fulfill job creation commitments. The agency will also market the unique program to companies already in Massachusetts and those businesses considering relocating to the Commonwealth.
Companies interested in obtaining more information about the program can log on to www.mass.gov/citizensjobbank, e-mail bizteam@state.ma.us or contact the Massachusetts Business Development office at 1-877-BIZ-TEAM.
About Citizens Bank of Massachusetts
Citizens Bank of Massachusetts is a $30 billion bank with more than 270 branch offices and 640 ATMs stretching from greater Boston to Cape Cod and the Berkshires. It is headquartered at 28 State Street in Boston and has regional administration centers in Quincy, Hyannis, Woburn and Wakefield. It has more than 3,800 employees.
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