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Banking
on Center Cities
People's, Citizens seek to spur development in Silver and Elm cities
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Business New Haven
2/22/1999
By: Sheila A. LaSella
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Two area banks have initiated programs to assist local communities on the economic-development front.
Citizens Bank launched its “New Haven 2000” program to provide up to $5 million in business loans for small firms and commercial property-owners in the Whalley Avenue, Chapel West and Town Green Special Services Districts of the Elm City.
James R. Claffee, Citizens' chairman, president and CEO, says the goal of the program “is to provide a wide variety of business loans to support job creation and economic development, with a special focus on selected neighborhoods.”
The loans offer liberal lending terms, including low initial interest rates, no-point loans, longer repayment terms, flexible pricing and more liberal underwriting guidelines than otherwise available. Citizens designed the program to encourage new businesses, which typically struggle financially in their first two years, and to help existing businesses in the districts remain open.
The loans are offered for retail and service businesses, owner-occupancy of commercial space, facade improvements or interior renovations and fixed asset acquisition.
Citizens has offered similar loan programs in Middletown and New London, and has over increased the amounts of money made available. The initial commitment in both towns was $1 million and was increased to $2.5 million in Middletown and $2 million in New London.
Says Claffee: “Citizens is prepared to further expand its commitment. We believe it's important to continue a leadership role in the efforts to improve the city of New Haven.”
Another loan program, the “Center of Opportunity” mortgage program, is being offered by People's Bank, the city of Meriden and area employers to city employees and employees of the Meriden Housing Authority, the Meriden Board of Education, SNET, ABS Pumps, Radio Frequency, Fosdick Fulfillment Corp., Walbro Corp., Times Fiber Communications Inc. and Hunter's Ambulance Service.
Meriden Mayor Joseph J. Marinan Jr. says: “It has long been the goal of this administration and the city council to promote Meriden as a great place to work and live. The program provides an additional incentive to make home ownership in Meriden even more attractive.”
The program is part of People's “Building Foundations” affordable-lending initiative. Building Foundations' objective is home-buyer education, affordable lending programs and community partnerships.
With a $200 million mortgage commitment as the cornerstone, participants in the People's program are eligible to receive a half-point off the commitment fee, a waiver of application and documentation fees, reduced interest rates on no-point adjustable-rate mortgages and flexible underwriting standards.
The financing will consist of programs made available through CHFA, Fannie Mae, Freddie Mac and a People's Bank affordable mortgage pool.
Meriden is one of nine cities partnering with People's to offer low-cost home-loan programs for its employees. Other cities include Bridgeport, Danbury, Hartford, Middletown, New Haven, Norwalk, Stamford and Waterbury.
People's introduced the “Building Foundations” program in 1994. The bank says it has helped nearly 500 Connecticut families to purchase or refinance homes through nearly $49 million in mortgage dollars.
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