MANCHESTER, N.H. — St. Mary's Bank, the nation's oldest credit union, has dropped its commercial loan rates and raised its lending threshold to woo businesses and homeowners to participate in a multi-million dollar neighborhood revitalization project.

The $656 million credit union said it has dropped its commercial loan interest rate by 1% 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. Of the $12 million St. Mary's program, $5.5 million is targeted toward commercial loans.

“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.

The credit union is also offering homeowners home equity and home improvement loans at discounted interest rates up to 1.25% off stated rates.