Coastway becomes RI’s newest bank
July 23, 2009
By MoneyAisle
The Warwick Beacon states that as of July 1, Coastway will make the transition into a bank from a credit union.
“As a credit union, the maximum Coastway could write in business loans was 12.25 percent of its assets. That was $36 million. The actual amount Coastway had in business loans as a credit union was almost doubled that at $70 million. It was able to do this because of federal guarantees mostly made by the Small Business Administration that guarantee up to 75 percent of a loan.”
Following its conversion to a bank, Coastway no longer has to follow these regulations. The FDIC will now insure all deposits up to $250,000.