February 2005: Governor Romney unveiled his “jobs program” jointly with “Citizens Financial Group”… a Massachusetts bank… to provide small business loans to people who promise to create “one job for every $25,000 borrowed.” CFG approached Romney with the idea to offer super low-interest business loans, agreeing to assume all risk on loans of just 2.5% APR (well below the then national average of 5.5%). I found no reports of the contract being put up for a bid. Low-rate business loans with no risk to the state? Naturally, the Romney Administration jumped at the proposal. This all strikes me as very odd. Why would any bank lobby for the chance to assume all risk on low-return loans? Yes, they were given a monopoly, but at just 2.5% APR, they could of cornered the market on their own. So I’m a bit stumped. Was this a Sweetheart Deal? CFG was run by Romney friend, “Staples” founder Tom Stemberg. Note: a month later, CFG was charged with fraud in an unrelated matter (“unethical or dishonest conduct” for “systematically targeting senior citizens” for sales of uninsured high risk/penalty variable-annuities.) Was this a case of Quid Pro Quo? Aiding Romney in exchange for leniency in their fraud case? After searching news archives from February of 2005 to January of 2009, I could find NO information regarding the outcome of the case nor if the case itself was even brought before a judge at all. This could suggest someone got the case dismissed, OR simply, the info is beyond the resources available to me online.

This “jobs program” was introduced by Romney following a corporate merger he was roundly criticized for not preventing (ibid “jobs program” link above) between “Proctor & Gamble” and “Gillette” that cost the state some 4,000 jobs. Interesting. A corporate buyout that led to the shedding of jobs for the profit of just one organization… does THAT sound like a skill Romney picked up from his years at Bain that he was able to apply to the role of Governor? It certainly appears as though Stemberg threw his friend Romney a lifeline (the cheap business loan program) when he needed it most.