News

Economic Innovation Group | Thursday, December 7, 2017

The Distressed Communities Index (DCI) combines seven complementary metrics into a broad-based assessment of community economic well-being in the United States. The 2017 DCI finds that 52.3 million Americans live in economically distressed communities, with over half residing in the South. Distressed communities exist in red states and blue states: 36.4 million constituents inside distressed zip codes are represented by the Republican party at multiple governments, and 16 million constituents inside distressed zip codes are represented by the Democratic party.

NextCity | Thursday, December 7, 2017

The Community Investment Explorer is a new tool to analyze community development transactions over the past 30 years. The data, sortable by year, investment purpose, and metropolitan area, comes from 3 sources: the work of CDFIs, New Markets Tax Credit (NMTC), and Low-Income Housing Tax Credit (LIHTC). "We know there [are] a lot of groups, be it affordable housing, developers, CDFIs, tax credit investors, in addition to policymakers, interested in this information and to see the stories this data tells," said a community development specialist at the Federal Reserve Bank of St. Louis.

The Financial Brand | Wednesday, December 6, 2017

This article features Sunrise Banks' innovative approach to banking underserved customers. CEO David Reilling is interviewed about how Sunrise Banks was founded, where it is headed, and how he built the brand from the inside out. "The key is to meet customers where they are at, whether it's on Facebook or at the local coffee shop," he said. "In the end, it's all about developing a trusted relationship."

| Monday, November 6, 2017

On November 6, 2017 the US House of Representatives Ways and Means Committee began the markup of the Tax Cuts and Jobs Act of 2017. If passed, this legislation as currently drafted would effectively eliminate the New Markets Tax Credit (NMTC) Program, which has been widely recognized as one of the most effective Federal programs to create jobs and promote small business in distressed rural and urban communities. The NMTC Program works to break the cycle of disinvestment in low-income communities by attracting the private investment necessary to reinvigorate struggling local economies. For every $1 of federal funding, the Program generates $8 of private investment.

Philadelphia Tribune | Wednesday, November 1, 2017

Philadelphia's only black-owned bank, United Bank of Philadelphia, is celebrating 25 years of serving its community. Evelyn Smalls, President and CEO, said, "Our fundamental goal is to see businesses grow and succeed. A lot of businesses do start in this region, but I think there is still a fair number of them that don't survive over three to five years. So we are really focused on the sustainability of these businesses: that they can continue to grow and be strong supporters in the economy."

ArkLaTex | Wednesday, November 1, 2017

Nine organizations in Minden, LA have teamed up on a project known as The Collaboration, which will seek to help entrepreneurs start and grow their small businesses. It will also foster development of existing companies. The Louisiana Economic Development office has changed its small business lending criteria to enable more widespread eligibility for state loans. Through The Collaboration, banks will be more inclined to lend to startup businesses. 

Huffington Post | Wednesday, November 1, 2017

The Huffington Post examines the Beneficial State Bank and Beneficial State Foundation as an alternative banking model with a large societal benefit. CEO Kat Taylor said in an interview, "You have to have a model that cares as much about environmental and social capital as it does about financial capital. Only within a community of practice like this can we create the muscle memory to do that, and to make the combined effort to monitor outcomes that will tell us whether we are doing that or not."

Alamosa News | Wednesday, November 1, 2017

The new First Southwest Bank Center for Economic Opportunity at Adams State University will open its doors in January 2018, and it focused on community-based strategic planning and trainings to promote local business startups and improve job creation and retention. "We're excited about the future opportunities for business growth in the San Luis Valley, a place with unique heritage and incredible people," said Kent Curtis, CEO of First Southwest Bank. "And First Southwest Bank is truly committed to building more small businesses, networks, and opportunities for our rural Colorado community."

Federal Reserve Bank of Philadelphia | Wednesday, November 1, 2017

This report from the Federal Reserve Bank of Philadelphia summarizes innovative activities from banks' Community Reinvestment Act (CRA) performance evaluations in the areas of job creation, education and workforce development, and transportation and affordable housing. It also examines potential mechanisms through which the CRA could help promote economic prosperity and alleviate poverty in the process of channeling capital into low- and moderate-income communities.

American Banker | Wednesday, November 1, 2017

The gridlock in Congress has challenged legislators to pass any meaningful bills on banking regulations, though bankers recently scored a victory when the Senate voted to repeal the Consumer Financial Protection Bureau's arbitration rule. Still, banks are concerned about other proposals, such as the CFPB's plan to collect data on small-business lending and changes to the Home Mortgage Disclosure Act. These worries only seem to compound an increase in nonbank competition and cybersecurity threats.

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