At the April 8, 2014 meeting of the Tucson Mayor and City Council, the President of Alliance Bank of Arizona, Duane Froeschle described how his bank used $5M deposited by the City of Tucson in his bank to lend $9M to local businesses.
Councilman Kozachik stated in all, 16 loans were made under the program. Mr. Froeschle describes some of those loans in the video link below. Among them was $2.9M to a medical services startup company. He states that he feels “strongly” that these deposits are important to his bank for lending to local businesses and hopes the program can be expanded. The Mayor and Council voted unanimously to expand the program and asked City Finance officer Sylvia Amparano to report back about how much additional capital can be deposited for this purpose.
(NOTE: This video is of part 2 of the Tucson City Council Study Session, April 8, 2014. The video portion on this topic can be found between minute 38.5 to minute 53)