August 31, 2017
PROVIDENCE, RHODE ISLAND, August 7, 2017: The Capital Good Fund, a Providence-based nonprofit lender received capital from the recently launched Small Business Capital Access Program (CAP).
According to Andy Posner, founder and CEO of The Capital Good Fund, this loan from the Capital Access Program will go directly into the hands of those who need it, in the form of small dollar personal loans. “The money we lend to impoverished families goes toward a variety of things- vehicle purchases or repair, security purchases, or general emergencies,” Andy continues, “We had a lot of luck with the Capital Access Program, it is a wonderful idea for small businesses to utilize, and helps us to continue our mission of providing equitable services that create pathways out of poverty.”
The Capital Access Program is a loan program, initiated by Governor Raimondo, that simplifies borrowing for local, community businesses and provides access to capital where none currently exists. Funds have been committed by the State of Rhode Island to enhance collateral coverage for banks and credit unions willing to make loans up to $750,000 to Rhode Island businesses with fewer than 200 employees. Participating financial institutions negotiate the loan terms with the borrower and BDC Capital provides collateral enhancement to the financial institution which helps mitigate their risk.
According to David Harrington of Rhode Island Capital, the company hopes to continue to replicate the success the CAP program has had in Massachusetts. “We’ve seen the long-term success of the Capital Access Program in other states, including Massachusetts. In the 20 years that the CAP program has been lending money there, more than 5,800 businesses have received funds, helping to create or retain over 42,000 jobs, and generating payroll tax revenues for the state in excess of $100 million. The program is an unquestionable success by every measure, and I applaud the Governor and the General Assembly for creating an environment in which Rhode Island small business, especially those with as important a mission as The Capital Good Fund, can truly thrive.”
“We’re very excited to participate in the CAP program, especially when the company receiving the loan as important to the greater Providence area as The Capital Good Fund. We place great value in our local community, and we know that this loan will help the Capital Good Fund continue to do the same,” said Scott Sheppard, vice President of Centreville Bank.
Centreville Bank has been a trusted local financial resource since 1828. Founded on a tradition of fair and conservative banking, yet dedicated to evolving with the needs of their customers, Centreville Bank continues to be a fixture in the Warwick community. Their commitment is unwavering: to help their customers meet their goals and build a strong financial platform for generations to come.