January 15, 2009
3 minute read
ECONOMIC DEVELOPMENT AUTHORITY ADDS CITZENS BANK AS LATEST PREFERRED LENDER
Financial Institution is 14th Granted Special Status by State Agency
Trenton, N.J. (January 15, 2009) – Citizens Bank of Pennsylvania, which operates 15 banking offices in Burlington and Camden counties, has been granted Preferred Lender status by the New Jersey Economic Development Authority (EDA). The EDA’s Preferred Lender Program, which supports Governor Jon S. Corzine’s commitment to enhance New Jersey’s economy, streamlines the EDA’s loan-approval process and speeds the flow of capital to growing businesses in the state.
“We are delighted to add Citizens Bank to our list of Preferred Lenders to support our efforts to serve the business community in southern New Jersey,” said EDA Chief Executive Officer Caren S. Franzini. “Our Preferred Lender Program creates new opportunities for EDA’s lending partners like Citizens Bank because it makes funds available at below-market interest rates with flexible terms for growing New Jersey businesses. Quick turnaround time from approval to closing provides a strong incentive for borrowers, while the EDA’s exposure by participating in or guaranteeing a portion of a loan reduces the lender’s risk.”
Citizens Bank of Pennsylvania, with executive offices in Philadelphia, is one of two wholly owned banking subsidiaries of Citizens Financial Group, headquartered in Providence, R.I., itself a wholly owned subsidiary of The Royal Bank of Scotland Group PLC. Citizens Bank had total assets of more than $38 billion and domestic deposits totaling $24 billion as of June 30, 2008.
Citizens Bank becomes the EDA’s 14th Preferred Lender, joining Bank of America, Capital One Bank, TD Bank, Cornerstone Bank, Columbia Bank, PNC Bank, Sovereign Bank, Sun National Bank, Peapack-Gladstone Bank, The Bank, New Jersey Community Capital, Roma Bank and Susquehanna Bank.
“We are pleased to receive Preferred Lender status from the New Jersey Economic Development Authority,” said Daniel K. Fitzpatrick, Citizens Bank president and chief executive officer for Eastern Pennsylvania, New Jersey and Delaware. “This designation will help us to support business growth in New Jersey by providing viable financing alternatives on a timely basis.”
The Preferred Lender Program features a quick, three-day turnaround time for loan approvals and provides businesses with financing for fixed assets like buildings and equipment, working capital for operating expenses and refinancing higher-cost debt. Under the program, the EDA can provide up to 50 percent of the bank loan amount for fixed asset loans, with a maximum participation of $1.25 million and a maximum guarantee of $1.5 million. For working capital loans, the EDA offers up to 50 percent of the bank loan amount, with a maximum participation of $750,000 and maximum guarantee of $1.5 million. EDA participation and guarantee terms may be up to 10 years for fixed asset loans and up to five years for working capital loans.
Borrowers of EDA funding under the Preferred Lender Program have the option of choosing a fixed rate indexed to the five-year Treasury rate or a variable rate indexed to the Prime Rate. Businesses must be New Jersey-based, in operation for at least two years, and commit to creating at least one new job per $50,000 in EDA exposure. Manufacturers need only to maintain one job per $50,000 of EDA exposure.
The EDA also offers other programs for borrowers that require businesses to be in operation for only one year.
To learn more about the Preferred Lender program or other products and services of the EDA, visit www.njeda.gov or call (866) 534-7789. For more information about doing business in New Jersey, visit www.NewJerseyBusiness.gov.
The EDA is an independent, self-sustaining state financing and development agency that works to strengthen New Jersey’s economy by retaining and growing businesses through financial assistance, by renewing communities, and by promoting the state’s strategic advantages to attract domestic and international businesses.
