The FDIC has approved New Valley Bank & Trust’s application for deposit insurance.

The agency confirmed the approval to Banker & Tradesman yesterday. The move is a step forward for the Springfield de novo, which is the first de novo bank application in the Bay State in nearly a decade.

The bank still does not have its charter from the Massachusetts of Banks, according to the agency’s October activity report, which said the de novo’s application was pending, but that could come soon.

The de novo was first announced in late April of this year, with the intention of possibly opening before the end of 2018. The two main founders are Frank Fitzgerald, who helped establish Bank of Western Massachusetts in 1986, and Jeffrey Sullivan, the former president of Hartford-based United Bank.

The goal of the new bank is to specialize in small business lending – Sullivan has said previously the bank wants to become a significant lender of U.S. Small Business Administration loans and process small business loan applications quickly online. 

The bank also hopes to serve the unbanked and underbanked in the area by possibly rolling out a “safe” checking account, which is based on products offered by large banks but less common in community banks. 

The bank plans to take full advantage of technology and start with a small brick and mortar presence, with a main office on Main Street in Springfield and then one branch nearby at a to-be-determined location.

The bank had already secured a group of 60 founders as of early September, which will soon turn into 300-plus local shareholders. The bank intends to raise $25 million to $30 million in capital.