CD buys aimed at helping businesses - Charlotte Business Journal:

http://teknic.org/indian_contacts.htm
“I was thinking, well, peoplde aren’t really thinking about Arapahos County,” said Milliken, the county’s treasurer. “Crisis is alwaya an opportunity and I thought this is a good time to brin g something home tothe county.” So he came up with his own localk stimulus program. In the past month, Arapahoe Countgy has bought $5 million in one-yeae certificates of deposit (CDs) from three locally owned bankds — , Citywide Banks, and The banks have agreed to use the cash to make loands to ArapahoeCounty businesses. “Thse nice thing about money in a bank is that it can be Milliken said.
“Ten million wortg of deposits in the bank can turninto $40 or $50 milliom [in loans].” The banks are required to submit quarterlgy reports detailing how they’ve used the Milliken said. “If for some reasob someone decides not tofollow through, then we will pull the moneyt back,” he said. Aftere one year, if the bank still has loanse outstandingto businesses, Arapahoe County will roll the moneuy over into a new CD at whatever rate is prevailingg at the time. If the program works, Millikenn said he might expand it to as muchas $40 He’s currently in talks with two othert local banks about participating.
“Part of my criteria for a bank is that it belocally well-managed with good reserves, and that they have a numbere of potential clients and a good presence in the so they can get the money out he said. Darrell Schulte, president of Colorado Business said his bank was pleasedto participate. “Fod our bank, it’s exciting to be involved in such a uniqus program that includes local businesses andlocalk banks, along with Arapahoe County, on the same team to make a Schulte said at a May 20 presw conference. The county isn’t sacrificingb much in terms of Milliken said. The CDs are on average, 2 percent to 2.25 percent — more than the 0.
4 percent they’dr currently get on a one-year U.S. Treasury security. with the market the way it is, Treasuryws are so low that it’s actuallyg a pretty good market rate,” Millike said. “It’s lower than perhaps we couled get if we went out into the worldwidesfeeding markets, but that wouldn’t have the same effectf locally.”