Federal Home Loan Bank of Boston’s “Jobs for New England” Program Aids Small Businesses
New England Council member the Federal Home Loan Bank of Boston is allocating $15 million over the next three years to promote small business loans through its “Jobs for New England” program.
After the recession, many banks have been hesitant to give out small business loans because of a number of high risk factors. The “Jobs for New England” program off-sets some of that risk by providing interest subsidies, up to $250,000 per institution per year. As a result, banks are able to provide loans with more certainty, while reducing interest rates for the small businesses.
Mario Cruz, the owner of a sandwich shop in Boston’s Dudley Square neighborhood, was approved for a $28,000 loan from Boston Private Bank—also a Council member—with the help of the program. The funds from the Federal Home Loan Bank of Boston allowed Boston Private to offer Mr. Cruz an interest rate of 3.5%, as opposed to the usual 5%.
The loans subsidized by the program will help small businesses throughout the region secure the financing necessary for growth that otherwise might have been out of reach.
The New England Council is proud of the positive impact the Federal Home Loan Bank of Boston is having on small business and looks forward to the growth their program creates.