PROVIDENCE, R.I. — Gov. Donald Carcieri unveiled yesterday a small business stimulus package that will invest $165 million into small and mid-sized businesses over the next two years with the help from several Rhode Island credit unions and banks.

The six point package included an infusion of capital into the state's small business loan fund, a state-backed loan guarantee program. One component is a $165,000 pledge from Coastway CU, Navigant CU, Bank Newport, Citizens Banks, Randolph Savings Bank, Washington Trust and Webster Bank to make new loans. All have agreed to report loan activity to the Rhode Island Economic Development Corp. The pledge will take effect immediately and the RIEDC will begin monitoring lending activity on Jan. 1, 2009.

The stimulus package also includes $7 million into Rhode Island's Small Business Loan Fund to make new loans. Both Coastway and Navigant CUs have each contributed $200,000 to the fund. Other components of the new stimulus plan are 10% of new money directed to Rhode Island's small business loan fund towards a micro loan program, creation of a small business growth capital growth program, a small business tax credit on guarantee loan fees, and $5 million from the Business Development Company of Rhode Island to provide gap financing.