banking
TD Bank debuts $12 million loan program for R.I. small businesses
The Toronto-Dominion Bank logo is displayed on a newly-opened branch in Toronto, Ontario, Canada. The bank now has four branches in Rhode Island.
BLOOMBERG NEWS FILE PHOTO / NORM BETTS
By Kimberley Donoghue
PBN Web Editor
Twitter: @kydonoghue
2/11/11
PROVIDENCE – Toronto-Dominion Bank on Friday announced a new $12 million loan program geared toward Rhode Island small businesses.
The program will target businesses, with $10 million or less in annual revenue, in need of financing between $5,000 and $1.5 million for purchasing or upgrading equipment; permanent working capital to finance growth with term loans with amortization schedules of three, five or seven years; or financing short-term, working-capital requirements with lines of credit.
Applicants to the loan program must pledge to add at least one full-time job or maintain existing staff levels after financing is approved, the bank said in a news release. The program will expire when the $12 million threshold is reached, or on Jan. 31, 2012.
The bank said its “most competitive” rates will be offered to small businesses; variables will include the market pricing and the business’ financials.
“For businesses that qualify for this program, we will determine their rate when they apply – what they would normally receive for a rate – then shave off 50 basis points for lines or credit of 25 bps for term debt,” said spokeswoman Jennifer Morneau to Providence Business News.
TD Bank, which has branches in Barrington, East Providence and Johnston, made the announcement at its new Providence “store” – the bank’s name for its branches - at 180 Westminster St.
Amos House, the Gloria Gemma Breast Cancer Resource Foundation and Crossroads Rhode Island were presented with $2,500 grants at the event.
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This is another PR gimmick by a bank that truly should not give rise to any print in your publication. The operative phrase is " For businesses that qualify for this program".This means that if applicants do not meet the underwriting standards of TD Bank, they will be denied access to capital. What would TD Bank do if an approved borrower did not add a full-time job or maintain the current level of employment?
Call the loan! The notion that any borrower must demonstrate or pledge to increase and maintain employment in order to secure a loan from bank is preposterous. How many RI small businesses do you think would qualify for a line of credit from TD or any bank. Not many. I wish PBN would seize publishing this muck. Monday, February 14, 2011|Report this
While these funds are great, they are more relevant to the larger "small business" with lots of collateral and great credit and not the mom and pops who are struggling. A underutilized source of Rhode Island small business loan programs is through revolving or micro loan funds that are funded by SBA, USDA, EDA, etc. This money is given to local economic development agencies to help spur economic development and create jobs, unlike the banks who are looking strictly at credit scores. www.businessloanfunds.com has a directory separated by county for these local, state and federal funds. Friday, December 23, 2011|Report this