The commonwealth’s Small Business Banking Partnership has made $106 million in deposits to 23 Massachusetts community banks and committed another $100 million to the program that leverages small business loans.

"The Small Business Banking Partnership has been a resounding success, and it’s a great example of an innovative public-private partnership," said state Treasurer Steven Grossman. "At no cost to the taxpayer, the program directs additional deposits into Massachusetts banks, encouraging them to lend to Massachusetts’ small businesses."

The initiative takes Treasury cash reserve funds typically held by large national and international financial institutions and deposits them in amounts of up to $5 million in Massachusetts-based community banks, according to a statement. In exchange for the infusion of new deposits, the banks sign a Memorandum of Understanding (MOU) signaling their intent to enhance their loan portfolios to small creditworthy Massachusetts businesses. More than 50 banks are now participating in the program.