Online bank Ally gets OK for nearly $2.7 million state grant for expansion

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A bank spun off from General Motors received an OK for a state Strategic Grant.

The Delaware Council on Development Finance gave the green light for the $2,658,624 Strategic Grant.

Ally earlier moved into the ” near-prime” credit card business with the purchase of Wilmington-based Fair Square Financial for $750 million. Fair Square’s Olio card is aimed at individuals looking to build their credit.

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Ally emerged from GM’s GMAC vehicle financing arm and now operates an online bank and financial services company.

It is one of several virtual banks that operate nationwide and have sites in northern Delaware.

The Strategic Grant program provides state money for projects that preserve or create higher-paying jobs in Delaware. The program has its critics who claim it subsidizes big business. Supporters say the program stops neighboring states and localities from poaching jobs with their incentive programs.

The council also considered a request from Secure Storage, Dover, for a nearly half a million dollar grant from the Delaware Site Readiness Fund.

The fund was established by the General Assembly after employers claimed that state transportation approval processes needlessly delayed projects that create jobs.

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