The traditional narrative about banks and FinTech startups is one of rivalry between old and new. However, the teams at FinTech startup LendUp and Beneficial State Bank in Oakland think very differently about the relationship. LendUp CEO Sasha Orloff and Beneficial State Bank Co-CEO Kat Taylor said that banks and FinTechs need each other, and a very large segment of the population living on the margins of financial services in the US need these two groups to work together as well.
The FDIC and two other federal bank regulators have proposed revising certain definitions in Community Reinvestment Act rules to be consistent with new Home Mortgage Disclosure Act requirements. Under the proposal, terms such as “home mortgage loan” and “consumer loan” would be updated.
This week, the Consumer Financial Profection Bureau conducted an official comment period on Section 1071 of the Dodd-Frank Act, which gives federal regulators the authority to collect and disseminate specific information with regard to small business lending from banks and other financial insitutions. As detailed in this Next City article, CDBA "unequivocally supports" the purpose of Section 1071 for its potential to increase financial accountability, but recommends a series of changes and clarifications to reduce the burden of the law's implementation on community development banks.
A growing number of bankers want to partner with the Small Business Administration on disaster relief as rebuilding estimates tied to Hurricane Harvey continue to mount and as Floridians and Georgians assess damage from Irma. The SBA, however, is giving little indication that it would welcome the help. No funds have been set aside to back an indirect program of bank-made, government-guaranteed loans, even though a 2008 law directed the SBA to do just that.
Hurricane Harvey brought the worst rainstorm ever recorded to Houston, but its fast-growing population and booming economy suggest that the city will rebound. Natural disasters bring terrible tragedy, but also unprecedented opportunities to recast urban infrastructure and economies in more resilient, sustainable, and inclusive ways. Houston can use its rebuilding to address the growing gap between rich and poor and bolster its declining middle class.
Pitch Black, Portland’s annual event for black entrepreneurs looking to launch their small businesses ideas, took place this past week. Albina Community Bank was among the sponsors. The four winners, selected from a pool of ten speakers who had five minutes each to pitch their ideas to a live audience, were all women. The first-place winner pitched a company that makes videos of inexpensive, DIY science projects for parents and kids. Her goal is to encourage children of color to explore the STEM fields.
U.S. Representative Congressman Bradley Byrne (R-AL) recently joined United Bank in support of the American Bankers Association Take Your Lawmaker To Work Day. Bank personnel and members of the Board of Directors hosted the Congressman in their business incubator, where they discussed regulatory reform, CDFI-related initiatives, and the unique role community banks play in building a strong economy. They addressed how community banks are doing their part to stimulate economic development, grow small businesses, and create jobs in his district.
Last week, the Mississippi Bankers Association hosted the well-attended 2017 Southern States CDFI Conference in Jackson. 15 CDBA member banks were among the 24 regional banks in attendance. At the event, CDBA CEO Jeannine Jacokes provided an update on CDFI policy questions. Other speakers discussed how to make the most of a CDFI certification and how to understand New Market Tax Credits in the context of rural southern banks.
Thanks to a $2.25 million loan from Virginia Community Capital, Seven Hills Food Company will be expanding its Lynchburg plant and increasing its staff. Seven Hills is a 2-year-old wholesaler of pastured, Virginia family farm-raised Angus beef. The plant connects local meat producers to local meat consumers. “The meat trade is dying as it’s being consolidated, so we’re creating a place for people who are interested in advancing in the meat-cutting trade and… creating more access for restaurants who have been limited in their ability to purchase because of the lack of availability,” said owner Ryan Ford. “This [loan] will allow us to continue growing our business to achieve our goal.”
Black Wall Street, a nonprofit dedicated to increasing the number of minority and underserved entrepreneurs who successfully grow scalable businesses in Durham, North Carolina, just announced the return of its signature event, Black Wall Street: Homecoming. Mechanics and Farmers Bank is among the sponsors of this event. “This will be a powerful and impactful week for black founders -- and what better place than Durham, where history shows what we can build and where diversity isn’t just talked about, but celebrated,” said Jesica Averhart, BWS co-founder.