Recent News
The Senate on Wednesday passed a short-term funding bill just hours before the deadline to prevent a government shutdown. Senators voted 84 to 10 to keep the government funded at current levels through Dec. 11, setting up another funding fight after the November elections and right before the holidays. The funding bill, passed by the House earlier this month, now heads to President Trump's desk, where he is expected to sign it before midnight to keep the government running.
A new House Democratic economic stimulus plan would funnel billions of dollars to Community Development Financial Institutions, reauthorize the Paycheck Protection Program and allow marijuana banking. Those are just some of the provisions contained in the 2,153-page bill, which has formed the basis for renewed negotiations between House Speaker Nancy Pelosi (D-Calif.) and Treasury Secretary Steven Mnuchin. The Democratic bill also calls for $1 billion for CDFIs for financial support and technical assistance, and a $2 billion “emergency appropriation” for the institutions, as well as up to... Read more
While the typical bank may be able to promise your money will do well under its stewardship, few commercial options promise your money will do good, as well. That's where community development financial institutions (CDFIs) come in. A CDFI is a private financial institution whose primary mission is to help communities that are traditionally left out of banking and investing options. Banking customers who want to see their money help increase economic independence in underserved communities and help end the racial wealth gap can turn to a CDFI for their banking needs. Here's what you need... Read more
First Southwest Bank was awarded Community/Rural Lender of the Year by the Colorado Small Business Administration during their virtual conference for National Small Business Week. Sherry Waner, FSWB's Chief Development Officer, accepted the award on behalf of the bank. Examples of rural businesses across the state that FSWB has helped through SBA loans include GEOMAT, Phoenix Recycling, Espinoza Consulting Services, Agile Space Industries, Chinook Medical Gear and Ace Towing. During the ongoing small business impacts of COVID-19, First Southwest Bank has completed 805 Paycheck Protection... Read more
The federal government is cracking down on alleged fraud in the Paycheck Protection Program. The Justice Department recently filed nearly 60 charges involving what it says are attempts to bilk over $175 million out of the program. Meanwhile, legitimate borrowers are working to get their loans forgiven. Now the government’s dilemma is whether to make it easy to get a PPP loan forgiven. One idea is automatically forgiving loans under $150,000, a provision of the Paycheck Protection Small Business Forgiveness Act that’s been introduced to the Senate. Robert James II at Carver State Bank in... Read more
Distressed groups — whether Black urbanites or white, rural shopkeepers — have long striven, unevenly, for economic self-sufficiency as a means of mobility. Typically, Wall Street-centered firms haven't had their backs. But, in many cases, smaller banks have. If you want to help minority-owned businesses, the first best thing is to shop local. But there's a next best thing, which is to move your deposits into Black-owned banks or community banks in general. Featuring Carver Federal Savings Bank.
Darrin Williams thinks it was probably a Fox News interview he did in early April that caught the eye of the White House and got him invited later that month to a videoconference with President Trump, his daughter Ivanka, and other top advisers. Williams is one of only a handful of Black CEOs at financial institutions with more than $1 billion in assets. At $1.6 billion, Southern Bancorp is a minnow next to the trillion-dollar-size whales that more commonly have access to Trump. But in this conversation, just four days after the federal government rolled out the Paycheck Protection Program... Read more
The U.S. Department of the Treasury's Community Development Financial Institutions Fund (CDFI Fund) released the application data for the fiscal year (FY) 2020 round of its Capital Magnet Fund program. A total of 137 organizations submitted applications requesting more than $642.2 million in funding. The applicants propose to serve 50 states, the District of Columbia, Guam, and Puerto Rico. In total, 53% of the applicants are certified Community Development Financial Institutions (CDFIs), and the remaining 47% of the applicants are non-profit affordable housing organizations.
Mastercard has announced it is launching a massive $500 million investment into Black communities amid the coronavirus pandemic, which has hit those groups disproportionately hard. The initiative — announced Thursday — also comes on the heels of a summer that has seen nationwide protests and the resurgence of the Black Lives Matter movement following the killing of George Floyd, a Black man, by a white police officer at the end of May. Split into three main parts, the investment will focus on making financial tools and services more affordable and accessible for Black communities as well... Read more
The U.S. Department of the Treasury's Community Development Financial Institutions (CDFI) Fund has awarded $25.2 million to 138 community banks and thrifts serving America's most economically distressed communities. Of the awardees, 68 are members of the Community Development Bankers Association (CDBA), who received a total of over $13.5 million in awards (nearly 54 percent of the total award dollars). Over 97 percent of CDBA members awarded this year received the maximum grant amount of $202,898.
When two banks merge, it's often bad news for at least one of those bank's communities. They could be merging because one of the two banks has failed, and regulators from the Federal Deposit Insurance Corporation have brought in one bank to take over for the other. Or it could be a big bank buying up a smaller bank that is having trouble surviving because of regulations that currently tip the scales in favor of big banks. But what happens when two otherwise financially healthy community banks from across the country merge, willingly, to form a national bank? The residents of Black... Read more
The Board of Governors of the Federal Reserve will vote on the Advanced Notice of Proposed Rulemaking on the Community Reinvestment Act Regulation on Monday, September 21 at 10am Eastern Time. The meeting is open to the public, but due to the current coronavirus pandemic, the public may observe this Board meeting via a live webcast on the Board's website.
The COVID-19 public health crisis coupled with the protests around the country calling for racial justice have made one thing clear: We must use this opportunity to confront and address long-standing issues of racial equity and access to capital and opportunity in this country. Whether we come out of this moment stronger or not depends on how we take action to change economic and social disparities. This is why Harbor Bank and JPMorgan Chase are partnering to make long-term investments that shift the economic future of underserved communities in Baltimore and across the region.... Read more
Today, the National Community Reinvestment Coalition (NCRC) and Morgan Stanley (NYSE: MS) announced a $15 billion, four-year community benefits plan that will increase the financial services company's lending and investments in lower-income communities. Under the plan, developed as part of the financial services company’s application to acquire E*TRADE Financial Corporation (NASDAQ:ETFC), Morgan Stanley’s lending and investments in low- and moderate-income (LMI) communities and communities of color will increase by 43% annually over previous levels from Morgan Stanley and E*TRADE.
On June 2, Bank of America made a $1 billion, four-year commitment to advance racial equality and economic opportunity. Today, the company is announcing its initial progress by directing one-third, or $300 million, of its $1 billion commitment to four key areas across 91 U.S. markets and globally: $25 million in support of jobs initiatives in Black and Hispanic/Latino communities, $25 million in support of community outreach and initiatives, $50 million in direct equity investments to Minority Depository Institutions (MDIs), and $200 million of proprietary equity investments in minority... Read more
Alabama One Credit Union in Tuscaloosa announced Thursday it has agreed to buy First Bank of Linden, an $82 million-asset, single-branch institution roughly 100 miles west of the state capital, Montgomery. The deal represents the credit union's second takeover of 2020, following a July merger that brought Alabama Rural Electric Credit Union under the Alabama One umbrella. Alabama One CEO Bill Wells said the motivation for the deal was geographical, as it would expand the credit union's footprint in western Alabama, which the executive sees as strategically important.
First Southwest Bank, a community development financial institution, is forging links with its Native American neighbors by offering opportunities for career and economic development. FSWB’s partner nonprofit, the First Southwest Community Fund (FSWCF), is another tool the community bank is using to connect with the Native population. It has created a pilot loan program dubbed the Native American Entrepreneur Loan Fund.
CFBancCorporation ("City First") in Washington, DC and Broadway Financial Corporation ("Broadway," Nasdaq: BYFC) in Los Angeles, CAannounced today that they have entered into a transformational Merger of Equals agreement to create the largest Black-led Minority Depository Institution (MDI) in the nation with more than $1 billion in combined assets under management and approximately $850 million in total depository institution assets (as of June 30, 2020). Combining the two institutions will increase their collective commercial lending capacity for investments in multifamily affordable... Read more
PayPal has just deposited $50 million in an account at Optus Bank, a minority-owned institution in Columbia, S.C., that has $155 million in assets. As unlikely as this pairing may sound, it happened relatively quickly. In June, PayPal announced a $530 million commitment to support minority communities and businesses in the U.S., especially those hardest hit by the pandemic, to help address economic inequality. Dominik Mjartan, Optus Bank's CEO, obtained a contact at PayPal through a friend and set in motion a conversation through which the San Jose, Calif., payment giant made Optus one if... Read more
Black Americans have been hit disproportionately hard by the Covid-19 pandemic, and the White-led financial institutions that could theoretically offer economic support may simply not be enough. The coronavirus pandemic has exacerbated a crisis for Americans already facing poor economic and health outcomes, and highlights the lack of financial services institutions run by Black founders and executives. CDBA members the Harbor Bank of Maryland, OneUnited Bank, and Carver Federal Savings Bank are mentioned.