Lisa Sevron, a professor at the Milano School of International Affairs, Management, and Urban Policy at the New School, describes the experiences of payday borrower Azlinah Tambu, a twenty-two-year-old single mother: Ms. Tambu's car had broken down, and she needed it to drop her daughter off at day care and get to work. Tambu had no savings or credit card; no family or friends who could help. So she took out five payday loans from five different lenders knowing she would not be able to pay them back on time. When the lenders tried to withdraw the money she owed from her checking account, she did not have sufficient funds and was hit with overdraft fees that mounted to $300. Tambu paid off the overdraft charges and closed her account. Still, Ms. Tambu feels the loans were a necessary evil. “I think they should still exist," she said. "You know it’s undoable to take out five loans and be able to pay them back. But sometimes you have no choice. The reason I’m working so hard to pay these loans back is that I want to be in good standing, in case I ever need another one."
Brian Argrett, President and CEO of City First Bank of DC, has been named a recipient of the Washington Business Journal’s 2014 Minority Business Leader Award. The award recognizes the top 25 minority business leaders in the Washington, D.C. area, honoring their entrepreneurial drive, creativity and success. Mr. Argrett, also CDBA Vice-Chair, was recognized for bringing financial services to the underserved and for his expertise growing companies in under-resourced and minority communities. Under his leadership, City First Bank has grown to over $200 million in assets and significantly increased its capabilities and impact in under-resourced communities. He also led City First Bank and its affiliates in organizing a new city-wide finance summit, a forum for discussion among urban planners, government officials, developers, community groups and financial institutions around the topics of economic parity and inclusion within a rapidly changing city.
On March 7, 2014, at 1:00 PM EST Promontory Financial Group will host a conference call to answer frequently asked questions about the Promontory Empowerment Awards. Topics covered in the call will include award eligibility, application requirements, selection criteria and prizes. All interested in attending are advised to RSVP to email@example.com for dial-in information and to submit questions for consideration during the call. Questions should be submitted by 5:00 PM EST on March 5. Promontory established the empowerment awards to recognize and support promising innovations which broaden access to safe, fair financial services. Awards will be offered in two categories: one for registered CDFI banks and another for financial and technology firms with less $10 billion in assets. Prizes will include consultations with Promontory and financial awards. More information and application materials are available at empowerment.promontory.com.
Virginia Community Capital President/CEO and CDBA Chairwoman Jane Henderson has been named one of three new board members by the Center for Rural Entrepreneurship. Based in Lincoln, Nebraska, the Center for Rural Entrepreneurship works in partnership with communities in the United States and Canada to provide customized research-based, asset-focused economic development strategies that emphasize entrepreneurship. Current board chair Thomas S. Lyons said of the transition, “We are excited about the addition of these three members who bring deep experience with entrepreneurship and community development... We look forward to the talents and energy they will bring to our board.”
OneUnited Bank has introduced a new credit card aimed at consumers who are trying to repair bad credit. The credit card, billed as the “comeback card” will initially be marketed in the bank’s three primary locations -- Boston, Los Angeles, and Miami -- said Teri Williams, the bank’s president. As customers establish a history of on-time payments, they can rebuild their credit, allowing them to qualify for traditional cards and other loans. “These are people who have hit a bump in the road,” Williams said. “We can relate, whether personally or as an institution, when you hit a bump in the road. The message that we would like to send is that you can come back from that.” said OneUnited President Teri Williams.
Alongside its announcement of the closure of its South Shore branch, Urban Partnership Bank has announced the launch of a new online and mobile banking platform, "upbAnywhere." The bank will offer free courses in January to train its customers to use the new platform. Urban Partnership also announced plans to refocus on small-business and real estate lending, and to participate next year in a foreclosure-prevention program backed by the Illinois Housing Development Authority. "We believe these are the right strategies... They better align our structure and business focus with the needs of our customers and communities, and in so doing, position us for long-term success," said William Farrow, the bank's chief executive.
A new service from Carver Bancorp that offers check cashing to non-customers from automated kiosks reflects a shift in the banking industry toward check cashing. The shift comes as payday lending comes under increasing fire from regulators and banks seek alternate sources of fee income. Carver's program brings the kiosks, which resemble ATMs, to the sites of employers on paydays, making it easier for the unbanked to access check cashing. Deborah Wright, Carver's chairwoman and chief executive, hopes to expand the kiosk program, which she forsees broadening the bank's outreach to underbanked consumers.
Three years after taking over the assets, deposits and mission of failed low-income neighborhood lender ShoreBank, Urban Partnership Bank is selling the converted movie theater in Chicago's South Shore neighborhood that served for decades as home to ShoreBank. The sale means Urban Partnership Bank will no longer have a physical presence in South Shore. Urban Partnership Bank CEO William Farrow commented that the bank continues to hold property in South Shore which he expects to eventually develop into a renewed presence in the neighborhood.
The CDFI Fund has announced its FY 2013 Bank Enterprise Awards, including twenty six (26) awards to CDBA member banks which received a total of $6,849,561 – or 40% of all awards.
In all, eighty-five (85) banks received $17 million in awards. The CDFI Fund reported that they received 98 applications requesting $91 million. The number of applicants in this year's BEA Program round represents an increase of 38 percent over the prior year. It is the largest number of BEA Program applicants since FY 2002. The average award was $200,574 and the maximum award was $323,000. Among the 85 awardees, 38 were CDFI banks ($11.1 million – or 65% of awards) and 21 were minority depository institutions ($6.2 million – or 36% of awards).
CDFI banks were awarded $11,352,909. Of the 26 CDBA member awardees, nineteen received the maximum award of $323,000.
The CDBA congratulates the following members awardees:
ABC Bank (Chicago, IL): $323,000
Albina Community Bank (Portland, OR): $256,950
BankPlus (Belzoni, MS): $323,000
Broadway Federal Bank, f.s.b. (Los Angeles, CA): $199,951
Carver Federal Savings Bank (New York, NY): $323,000
CBMS: Community Bank (Ellisville, MS): $86,655
CBMS: Community Bank of Mississippi (Forest, MS): $88,777
CBMS: Community Bank, North Mississippi (Amory, MS): $50,287
Central Bank of Kansas City (Kansas City, MO): $254,792
City First Bank of D.C., N.A. (Washington, DC): $323,000
Community Bank of the Bay (Oakland, CA): $323,000
First American International Bank (Brooklyn, NY): $323,000
First Eagle Bank (Hanover Park, IL): $323,000
First Security Bank (Batesville, MS): $39,649
Guaranty Bank and Trust Company (Belzoni, MS): $323,000
Illinois-Service Federal Savings and L.A. (Chicago, IL): $323,000
International Bank of Chicago (Chicago, IL): $323,000
Metro Bank (Louisville, KY): $323,000
Mission Valley Bank (Sun Valley, CA): $323,000
One PacificCoast Bank, FSB (Oakland, CA): $323,000
Pan American Bank (Melrose Park, IL): $323,000
Start Community Bank (New Haven, CT): $58,500
Sunrise Banks, N.A. (St. Paul, MN): $323,000
United Bank (Atmore, AL): $323,000
Urban Partnership Bank (Chicago, IL): $323,000
The Bank of Vernon (Vernon, AL): $323,000
Albina Community Bank's Lime Wind Project, a wind farm in eastern Oregon funded in partnership with Wells Fargo, has been highlighted in an Office of the Comptroller of the Currency (OCC) newsletter. Lime Wind is a local distributed-energy project run by a small operator for the benefit of the local community. It provides reliable, green power at rates at or below that of traditional sources. The Lime Wind transaction utilized $8.4 million in new markets tax credits (NMTC) allocation provided by Albina Equity Fund.