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February 13, 2013
By Alex Walsh | awalsh@al.com
Regions Financial Corp. CEO Grayson Hall spoke at today's event, announcing the creation of the bank's $1 billion Economic Development Loan Pool. (Photo by: Alex Walsh | Alabama Media Group)
BIRMINGHAM, Alabama -- In a formal partnership with state government, Regions Bank (NYSE: RF) has earmarked $1 billion in loans for the specific purpose of lending to companies and businesses that are adding jobs in Alabama.
The result of Regions' new commitment is being called the Regions Economic Development Loan Pool. To lend those funds out, a dedicated team of Regions bankers will work with the Alabama Commerce Department to identify development candidates that satisfy several criteria: the business must either establish operations or already be located in Alabama, it must meet Regions Bank's existing credit standards, and it must have explicit plans to either expand or maintain its current number of employees.
One such example of an eligible development candidate would be Integrated Medical Systems International, Inc., a Birmingham-based surgical device management and medical consulting firm. The company plans to grow its workforce from roughly 1,100 to 1,500 by the end of the year, and has a plan in place to double its 2012 revenues, which were $117 million, over the next five years.
Already, Regions has provided IMS with a $7 million loan to expand its operating space – and Wednesday's event, attended by both Mayor William Bell and Gov. Robert Bentley, was held in an as of yet unfinished, 55,000-square-foot part of that expansion.
"This loan pool will help us build on our job creation efforts," Bentley said, specifically mentioning the importance of smaller businesses as they relate to the state's growth mission. "That's where most of our jobs actually come from," he said.
For Regions, the new Economic Development Loan Pool is an opportunity for Alabama's largest bank to provide confidence to the businesses within its home state, at a time rife with uncertainty.
"In many ways, 2013 is an excellent opportunity for businesses both large and small to grow for the long term," said Grayson Hall, CEO of Regions Financial Corp. "What they need is a commitment of confidence and a commitment of capital."
Hall added that he hoped other banks would follow Regions' path, essentially confirming that the partnership announced today is not an exclusive one.
For more information, visit http://commerce.alabama.gov
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