Last week, the City of Phoenix announced a plan to move a large chunk of money to invest in local banking institutions:
"The city of Phoenix is launching a plan to invest up to $50 million in public money with banks and credit unions in the metro area with the goal of providing them with the capital to make loans to businesses and individuals.
'Not only is the city following a policy that provides for prudent and efficient investment, but provides additional funds for consumer and small-business loans in the local economy,' said Mayor Greg Stanton."
This is a monstrous move that will help support local businesses all over the Valley. According to the Institute for Local Self-Reliance, small and mid-sized banks control less than one-quarter of all bank assets, yet they account for more than half of all small business lending.
Thus, this infusion of investment dollars will give local banks and credit unions the ability to offer more loans to start-up businesses and for business expansion. The flow of these dollars will recirculate throughout the local economy, creating jobs and securing a strong economic future for our community.
The great part about this new arrangement: Phoenix hopes to actually get a higher rate of return on some of its investments with local banking institutions.
If you are a locally-owned and operated bank or credit union: Phoenix's Finance Department will be accepting applications from local banks that have an interest in providing CDs and other FDIC-insured products to the city. Local banks can contact the city's Finance Department at 602-262-7166 for more information or to submit an application.
If you are looking to move your money to a local bank or credit union: check out the list of local banking options in the Local First Arizona directory.