Phoenix invests in local financial institutions
Phoenix, a city majorly impacted by the housing crisis a few years ago, is regaining its local economy and attracting new homebuyers to the area. Now is an ideal time to buy real estate in Phoenix, AZ, as city officials are boosting the economy by investing in local banks.
Phoenix is investing $50 million in its local financial institutions through federally issued grants, and will only be issued to Arizona-chartered banks or ones that are physically located in Maricopa County. By giving small banks the opportunity to give out loans to businesses or residents, the city hopes to have a greater return on investments.
"Not only is the city following a policy that provides for prudent and efficient investment, but provides additional funds for consumer and small-business loans in the local economy,” Mayor Greg Stanton said.
All loans are required to be insured by the Federal Deposit Insurance Corporation by state law. Also, banks are able to use the loans as collateral to back up investments.