Senate Bill 157 was unanimously passed by the General Assembly during the 2019 session and was signed into law by Governor Brian Kemp on May 2, 2019.
Community banks can now accept local government funds and secure them by utilizing the FDIC Insurance of multiple banks. Nationally, more than 4,000 banks participate in these programs.
Previously, community banks were required to purchase government bonds when a government deposit was made. This new law allows banks, including those in rural Georgia, to accept local government funds and allows them to reinvest the funds by loaning money back to their own communities. This increased lending will spur business growth, jobs, and boost statewide economic activity.
Senate Bill 157 reflects Governor Kemp’s theme of Georgians First. For more information, contact Vinings Bank @ 770-437-0004 to discuss the benefits of this new program.