Boston, August 29 – Treasurer Steven Grossman today toured the premier electronic manufacturer Adcotron in South Boston, a recipient of a $350,000 loan made by East West Bank leveraged through the Treasury’s Small Business Banking Partnership. The company anticipates adding 10 new jobs because of the loan. A news conference was held in the company’s meeting room.
Treasurer Grossman, Johnny Ip presented the loan check to Agnes Young
“All across Massachusetts, we are seeing successful businesses like Adcotron grow and flourish as a result of the Small Business Banking Partnership,” said Grossman. “I’m delighted to support small businesses that are leading the charge in our innovation economy while creating jobs right here in the Commonwealth.”
The Small Business Banking Partnership moves Treasury cash reserve funds typically held by large national and international financial institutions and deposits them in amounts of up to $10 million in Massachusetts banks. In exchange for the infusion of new deposits, the banks sign a Memorandum of Understanding (MOU) signaling their intent to enhance their loan portfolios to small credit-worthy Massachusetts businesses.
|Adcotron is an advanced contract manufacturer of electronics and mechanical devices that caters primarily to the medical, defense/homeland security, telecommunication, and alternative energy sectors. Led by President Agnes Young, the company is a woman and minority-owned business enterprise. Adcotron places an emphasis on high quality production and fostering its competitiveness by investing in new technologies and a highly trained and skilled workforce. The business, which was able to purchase an automated machine that assembles electronic components with the loan proceeds, has 35,000 square feet of manufacturing space in the Marine Industrial park in South Boston.
“Adcotron is a true beneficiary of East West Bank’s small business lending program and the Massachusetts State Treasurer’s Small Business Banking Partnership, which encourages banks to increase lending activities to small credit-worthy business,” said Agnes Young. “This loan will afford our company the opportunity to grow to the next level and to be more efficient and competitive. More importantly, these new funds will enable us to create 10 new jobs, which in turn, will provide a positive ripple effect in improving the economy in South Boston.”
|East West Bank has three branches in the greater Boston area. The Bank, a public company with $21.5 billion in assets is a full-service commercial bank serving consumers and businesses throughout United States with its 125 branch network, and in Greater China through its subsidiary bank in Shanghai and branch office in Hong Kong.
“One of East West Bank’s main missions is to provide loans to small businesses in New England to support their business expansion,” said Johnny Ip, Easy West Bank’s New England Regional Director. “Providing this loan to Adcotron to grow its business and to create new jobs is a perfect example that demonstrates how East West Bank puts the deposit from Massachusetts Treasurer’s Office to work.”
All deposits that the Treasury makes in these community banks are protected through either insurance or collateral, and the interest rate on the money is comparable to what the Commonwealth receives at out-of-state financial institutions.
Executive Director of the Massachusetts Supplier Diversity Office Reginald Nunnally and Boston city councilor Bill Linehan attended the news conference.