The Phoenix Industrial Development Authority said today that it will pull IDA deposits totaling $1 million out of a national bank and place the money instead into four Arizona community banks that are lending money to businesses within the state.
The organization wants to help jump-start the state’s economy and make sure its money is working for Arizona, said Don Keuth, an IDA board director.
“We thought depositing our funds into community banks that are lending locally would be the best thing we could do to help,” he said.
The Phoenix IDA’s mission is to provide financial assistance for affordable housing, and community and economic development within the city of Phoenix. The organization has issued more than $2.78 billion in bonds for housing, education, community and economic development projects in the past 10 years.
Kimber Lanning, executive director of Local First Arizona, called the move “groundbreaking,” and said it will allow the local business community to access needed capital.
Local First Arizona is a nonprofit organization that works to support the local economy and businesses based in the state.
Lanning said she hopes the move will help get more money into the hands of small and midsize Arizona businesses.
Biltmore Bank of Arizona, Sunrise Bank of Arizona, Alliance Bank of Arizona and Sonoran Bank NA each received $250,000 in IDA deposits.
“This is a great way for us to be fully invested in Arizona,” said Juan Salgado, executive director of the Phoenix IDA. “Our money needs to work for us, and now we can be sure of that.”