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CDA approves City Trust Bank for small business loan initiative
The Commonwealth Development Authority has added City Trust Bank as a depository of State Small Business Credit Initiative funds.
The money deposited in the account will serve as collateral for City Trust Bank as it participates in a program that CDA hopes will push out some $4 million in loans by June.
CDA acts as a conduit of these SSBCI funds deployed by the U.S. Treasury. The program is bank-driven. Banks can turn to SSBCI for cash collateral or loan purchase support to assure their investment in the local businesses they loan to.
The CDA board of directors voted unanimously to allow SSBCI funds to be deposited at City Trust Bank but with some recommendations.
Board member Tom Glenn Quitugua and other members appeared concerned over “liability” CDA might have in this process. He urged that the resolution contains language that refers to the memorandum of agreement signed by CDA and the federal governing that “would eliminate all doubt as to any conflicts as to any liabilities”
Board chair Diego Songao asked the CDA lawyer present to get the “specific language” for this recommendation. The board voted unanimously.
