Recent News
On September 19, the Treasury Department’s CDFI Fund announced $24.3 million in CDFI Program Awards to a record-breaking 27 banks, including 22 CDBA member banks! Among recipient states, Mississippi received the highest proportion of funds nationwide, with Arkansas ranking second and Louisiana third.
According to a massive new dataset compiled by researchers at the Urban Institute, there are many financially-neglected areas that CDFIs have yet to reach. The study found that CDFIs lent over $34.3 billion between 2011 and 2015, and 64% of this lending went to census tracts with one or more indicators of being underserved or distressed. However, CDFI activity was not distributed equally across the country, even among economically comparable places. In order to expand, the sector needs additional support mechanisms.
Chicago is entrusting $20 million to the last black-owned bank in the city, Illinois Service Federal Savings and Loan Association, thereby bolstering a lender that began in the Great Depression as officials join a nationwide movement to steer idle funds to underserved communities. “If we’re going to be serious about supporting those communities and community banks and what they do for small... Read more
Bob Jones, president and CEO of United Bank in Atmore, Alabama, has been appointed by President Trump to serve a four-year term as a member of the US Treasury Department’s Community Development Advisory Board as the representative of insured depository institutions. The board advises the director of the CDFI Fund on policies regarding the activities of the fund.
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... Read more
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... Read more
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... Read more
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.
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.
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... Read more
First Independence Bank is one of five funders for the newly-announced Fourth Street Ecohomes Project in midtown Detroit as part of the Selden Corridor Initiative, a mixed-use redevelopment that will create new housing, job opportunities, and businesses in the area. The Ecohomes will boast innovative sustainable technologies such as rooftop solar panels, solar thermal hot water heating systems,... Read more
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... Read more
The First Southwest Community Fund, a nonprofit supported by First Southwest Bank, was recently one of three awardees to receive funds through the Colorado Office of Economic Development and International Trade (OEDIT) to create a revolving loan fund. In 2017, First Southwest Community Fund received $400,000 for this loan fund, and assuming the state legislature allocates funding next year, in... Read more
The CDFI Fund announced $18.6 million in 2016 Bank Enterprise Award grants to mission-focused banks for their service in high poverty communities. This Fund – which yields an enormously high impact with a near-negligible proportion of the federal budget – is under threat in the immediate years to come.
The CDFI Fund has announced $18.6 million in 2016 Bank Enterprise Award grants to mission-focused banks for their service in distressed communities. With limited resources, the BEA program provided grants to a record-breaking 102 banks and thrifts headquartered in 22 states and the District of Columbia. The highest proportions went to rural Mississippi and Louisiana. 92% of the money was awarded to 86 CDFI-certified banks.
This article by Next City analyzes the positive impact made by the 102 banks, including 50 CDBA members, who received BEA Awards in August. As a group, the banks provided $550.8 million in loans to 3,181 businesses and $37 million in loans to 2,193 residents in target communities in 2015.
In just two years, BankPlus has firmly established itself in Tupelo, where it has opened two offices, broken ground on a third location, cleared a lot for a fourth location and bought land for a downtown office. Up until 2015, BankPlus had little exposure in Northeast Mississippi. “Tupelo is well-known throughout the state for having strong community leadership in government and with the... Read more