MANCHESTER, N.H. — St. Mary's Bank, the nation's oldest creditunion, has dropped its commercial loan rates and raised its lendingthreshold to woo businesses and homeowners to participate in amulti-million dollar neighborhood revitalization project.

The $656 million credit union said it has dropped its commercialloan interest rate by 1% to 4.99%, and raised the maximum loanamount 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 loanprogram as part of the City of Manchester's Rimmon Heights/WestSide Revitalization Plan. Drafted by the city and planningcommission, the plan calls for improvements in parks and greenspaces, housing, business assistance, neighborhood identity anddesign, infrastructure, and security. Of the $12 million St. Mary'sprogram, $5.5 million is targeted toward commercial loans.