Esther Schlorholtz, chairwoman of the Massachusetts Community Banking Council and senior vice president at Boston Private Bank & Trust Co. (whose Wellesley office is above), says small-business owners and entrepreneurs often are not aware of the resources available to them.

The Massachusetts Community Banking Council is calling banks to participate in a new program to help small businesses thrive in cities and towns throughout the commonwealth.

So far, more than 20 banks have signed up to participate in the Massachusetts Banking Partners Program. The new program, which was designed to help people seeking small-business loans, was developed by MCBC. It is geared toward businesses with 20 or fewer employees.

Esther Schlorholtz, senior vice president at Boston Private Bank & Trust Co. and chairwoman of MCBC, said small-business owners and entrepreneurs often are not aware of the resources available to them. The idea of the program is to help those smaller operations get the adequate funding they need to run or start a business.

“The primary reason for doing this is to promote economic growth,” she said. “On the banking side, it is a very attractive way to do business.”

Participating banks will refer applicants that meet the criteria to a nonprofit technical assistance provider who will help the potential borrower fully develop a business plan and come back to the bank prepared to enter the loan process. Banks that do sign up to participate in the new small-business loan program pledge that they are willing to consider loans of smaller amounts and offer borrowers at least 50 basis points below their standard rate. Banks also can count their participation toward their Community Reinvestment Act requirements.

“It’s a good way to help small businesses grow and make our economy stronger,” said Schlorholtz.

In October, the Massachusetts Bankers Association will hold a meeting for all of the banks that have registered to take part in the program.

MBA Executive Vice President and Chief Operating Officer Kevin Kiley said banks will have the opportunity to sign up for the program after the initial deadline of Sept. 29. However, he added that banks should sign up sooner rather than later to help kick the program off with a show of strong support from the banking community.

“We think it is an extremely positive program,” he said. “It will be very beneficial for borrowers in start-up mode.”

Banks can e-mail Schlorholtz at eschlorholtz@bostonprivatebank.com if they want to participate in the program or are seeking more information.

New Program Designed to Aid Small-Business Loan Creation

by Banker & Tradesman time to read: 2 min
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