The $656 million credit union said it has dropped its commercial loan interest rate by one percentage point to 4.99% and raised the maximum loan amount available at the discounted rate from $100,000 to $250,000. For loans over $250,000, interest rates will be blended with market rates, according to St. Mary's Bank.
In 2007, the credit union made changes to its $12 million loan program as part of the City of Manchester's Rimmon Heights/West Side Revitalization Plan. Drafted by the city and planning commission, the plan calls for improvements in parks and green spaces, housing, business assistance, neighborhood identity and design, infrastructure and security. Rimmon Heights is the first neighborhood selected as part of the City of Manchester's goal to create healthy, vibrant neighborhoods.
Of the $12 million St. Mary's Bank loan program, $5.5 million is targeted toward commercial loans. Amoskeag Industries is providing $500,000 of that allocation specifically for capital equipment needs, commercial and investment real estate and repairs and refurbishment, according to the credit union. The remaining $6.5 million is allocated for home improvement loans and homebuyers. St. Mary's Bank is offering homeowners home equity and home improvement loans at discounted interest rates up to 1.25% off stated rates.
"By offering below-market rates to residents and businesses in this area, we're showing our unqualified support for this project," said Donald St. Germain, executive vice president and director of commercial lending and credit administration at St. Mary's Bank. "We hope affordable financing gives more people the opportunity to invest in the community where they live and work."
In support of the neighborhood revitalization effort, St. Mary's Bank has set up a dedicated resource center in the lobby of the McGregor Street branch where area residents and business owners can learn more about the complete project, progress to date, including before and after photographs, and loan package details.
--msamaad@cutimes.com
