Ten local banks and credit unions pitched in recently to help boost a Lawrence loan fund that aims to give local businesses a leg up.
The Lawrence Venture Loan Fund announced at an event last week that it was expanding from $1 million to $2.5 million with the help of those area financial institutions. The fund was founded less than a year ago with the intent of making loans to small businesses in the city of Lawrence.
“These banks are making real investments. It’s a sign of faith in the business community here in Lawrence. And it’s also a real sign of vision and collaboration that they’ve been able to find unique ways to work together for the betterment of all,” Derek Mitchell, executive director of the Lawrence Partnership, said at last week’s press conference, hosted by Eastern Bank at its branch on the Northern Essex Community College campus.
Eastern Bank was one of the founding financial institutions of the Lawrence Venture Loan Fund, along with Enterprise Bank, Merrimack Valley Federal Credit Union and TD Bank. The fund, which also won the city’s backing, has so far loaned almost $500,000 to local businesses, resulting in the creation of 100 new jobs for the city of Lawrence.
With the addition of six new banks and credit unions, the fund has now more than doubled in size. Those institutions include Align Credit Union, Digital Federal Credit Union, Jeanne D’Arc Credit Union, Pentucket Bank, Reading Cooperative Bank and The Savings Bank.
“This is very meaningful for us, to see so many financial institutions ready and willing to participate in the local economy. Eastern back in 2011 thought that the community was underserved,” Pedro Arce, vice president of Eastern Bank’s business banking group, said at the presser. “We found all of these great businesses, organizations, startups, all working together and we wanted to be part of it.”
“This Lawrence partnership is not only a bridge over water, but it’s also hands across the water. This is historic,” said Ray Wrobel, vice president at Align Credit Union. “We’re going to be helping people, we’re going to be helping small businesses in the Lawrence area, meeting their educational and financial needs and also creating jobs.”
The city of Lawrence will provide a 10 percent loan loss reserve to the expanded fund while Mill Cities Community Investments, the fund’s administrator, will continue to be its primary lender.
Wrobel added, “Banks and credit unions… This has brought banks and credit unions together and for one common purpose to basically help a city, help a gateway city.”
