Washington, D.C.-based Industrial Bank has released its 2014 annual report, marking the bank's 80th year in operation. In 2014, Industrial Bank's commercial and commercial real estate loans increased by 8.5% to an all-time record of $256 million. The bank expanded its support for local businesses as an SBA Preferred Lender status and held a conference for businesses pursuing government contracts. The bank also became involved in insurance by initiating a new partnership with New York Life Insurance Company to provide estate planning services to customers. Industrial Bank... Read more

City First Bank of D.C.'s 2014 Annual Report details the bank's continued growth and success in taking advantage of the New Markets Tax Credit (NMTC) Program. The bank received its sixth NMTC Program allocation in the amount of $48 million. Among the projects City First has financed using the program is the DC Prep Public Charter School, which was able to renovate and expand one of its campuses in a low-income section of Washington, D.C. The project created 211 additional seats, boosting the total student population to 711, 90% of whom are low income students who qualify... Read more

The Small Business Administration's flagship 7(a) lending program is likely to resume operating this week after briefly putting new guarantees on hold. Record demand had pushed the program to its $18.75 billion funding limit before both chambers of Congress voted to add nearly $5 billion in additional funding authority. The weeklong shutdown could underscore the program's bipartisan support — or give its critics more ammunition to argue that it is too vulnerable to politics. Under 7(a), the SBA provides guarantees of up to 85% on small-business commercial loans. This year is looking to be... Read more

The FY2016 Financial Services and General Government Appropriations Bill has been approved by the Senate Appropriations Committee. The bill cuts funding for the CDFI Fund by $9.5 million from FY 2015 levels to $221 million. Following dedicated outreach from CDBA members, the bill includes $21 million for the Bank Enterprise Award (BEA) Program – an increase from $18 million in 2015. The bill also increases funding for the FA Program to $161.9 million, up $9.5 million from FY2015. Native Initiatives remain stable at $15... Read more

Carver Federal Savings Bank will join Morgan Stanley and other investors to provide a line of credit to Community Housing Capital, Inc., a certified CDFI formed under the auspices of NeighborWorks America. Carver has provided $3 million in debt as part a $100 million syndicated financing lead by Morgan Stanley. Community Housing Capital provides early stage, interim development and permanent multifamily loans and construction loans to NeighborWorks Organizations nationwide. Its mission is “to promote affordable housing by providing access to flexible capital that is... Read more

Beneficial State Bank's 2014 Annual Beneficial Banking Report caps a year of major change for the bank. In July, Beneficial launched a major rebranding which included dropping its former name, One PacificCoast Bank. Beneficial State Bank lent $347 million in 2014, 81 percent of which went to mission-oriented causes. In 2014, Beneficial provided $156,900 in sponsorships to community organizations – ten percent of its total profits. Also in 2014, Beneficial launched the Personal Builder Loan, a consumer loan targeted at the underserved offered in partnership with LendUp... Read more

A growing number of CDFI banks, including Virginia Community Capital, Sunrise Banks and Beneficial State Bank, are becoming certified B Corps -- corporations that use business to achieve social impact. For these banks, the B Corp label is an affirmation of their positive work bringing capital to underserved communities. For customers, it acts as a signal that the banks maintain high ethical standards to social and environmental goals. “Being a part of the B Corp community gives us the opportunity to stay focused on our mission to provide... Read more

Minority-owned banks are crying foul after being shut out of this year's round of the New Markets Tax Credit (NMTC) program. The NMTC program provides a tax credit to investors who invest in low income communities by funneling their investments through NMTC allocatees. None of the 76 NMTC allocations made this year were awarded to a minority bank. A 2009 study by the Government Accountability Office found that only about 9 percent of minority entities were successful when applying for NMTC allocations, compared to 27 percent of non-minority applicants. "We need our CDFI Fund to do more; we... Read more

A report by the Pew Charitable Trusts finds that reloadable prepaid cards are rising in popularity among consumers, particularly the unbanked. Unbanked consumers increasingly treat their cards as checking accounts, using them to receive direct deposits and pay bills. Prepaid card usage increased 50 percent between 2012 and 2014 and 23 million adults in America now use prepaid cards regularly. Much of this growth occurred among consumers with bank accounts who purchased a card at their bank or credit... Read more