Sacramento, CA – November 9, 2017 – Region Finance, a newly formed trade association, is aiming to advance regional economic growth by encouraging Sacramento region municipalities to invest $1 billion of its funds into local community banks in the six-county Sacramento region. The City of Elk Grove was the first partner announced by Region Finance for its Responsible Investments for a Stronger Economy (RISE) program following an initial commitment of up to $15 million. The locally based banks plan to support economic development, job creation, and business expansion in the region by reinvesting these funds, along with others that will be dedicated to RISE, in growing local businesses.
“Region Finance is focused on keeping money, accounts and financial decisions here in the Sacramento region, and we are excited that our customer, the City of Elk Grove, has agreed to become the first of many participants in the RISE program,” said Steve Fleming, President and CEO of River City Bank and Board Member of Region Finance. “This decision represents an important first step in promoting local government investment to generate economic self-sustainability in our Sacramento communities.”
“The City of Elk Grove is excited to be the first municipal partner in this new and innovative program,” said Darrell Doan, Economic Development Director for City of Elk Grove. “The goals of RISE, supporting local economies and the Sacramento region through business lending, are in perfect alignment with Elk Grove’s strategy of supporting our small businesses by providing them enhanced access to capital.”
As the newest trade association under the umbrella of the Sacramento Region Business Association, Region Finance launched just last week. The association will focus on advancing regional economic growth by improving and expanding access to capital for local businesses and residents while providing local jurisdictions and policy leaders in the region with a unified voice through its innovative RISE program. RISE will spur additional investment in local businesses by increasing the amount of funds held on deposit at qualifying banking institutions headquartered in the region, like River City Bank. At the same time, RISE will continue to ensure the safety, security and yields of municipal funds by modifying municipal financial policies.
To qualify for RISE, a bank must be an FDIC insured bank headquartered in the Sacramento region and must maintain a “5-Star Superior” rating with Bauer Financial and a “Superior” rating of 200 or higher with IDC Financial. Each qualifying institution is required to submit a semi-annual report to the City Manager, Treasurer, and Council detailing loans, investments, and charitable giving made to businesses, consumers, and organizations within the City, and the projected number of jobs created. The City will include an update on the status of the RISE strategy in its quarterly financial reports.
To learn more about the City of Elk Grove, visit ElkGroveCity.org.
