Community Development Banking News
CDFI Banking: Industry, Policy, and Beyond.
Southern Bancorp Community Partners (SBCP), lending partner of Southern Bancorp, has announced passing the $2.5 million mark in new capital to expand its lending. SBCP plans to raise a total of $5 million to expand its revolving loan fund to provide small business loans, microloans, mortgages and consumer loans in underserved communities in Arkansas and Mississippi. Because it faces fewer regulations than a depository institution, SBCP has greater flexibility in making loans that traditional lenders are unable to pursue, yet are desperately needed in rural communities. “On behalf of the many hard working people across our markets, I’d like to extend my gratitude to our investors who share our belief that a zip code should not determine one’s economic opportunity in life,” said Dominik Mjartan, CEO of SBCP.
OneUnited Bank has announced the winners of its 5th annual I Got Bank! Youth Essay Contest. Jahneece Cheatham, 8, of Long Beach, California, Jacqueline Hernandez, 12, of South Gate, California and Quentin Thomas, 11, of Philadelphia, Pennsylvania impressed the judges with their mastery of financial literacy skills and each won a $1,000 savings account. “We believe every child who participated in this essay contest is a 'winner' because their eyes have now been opened to the importance of saving and managing money,” said Teri Williams, President & Chief Operating Officer of OneUnited Bank.
Many Americans have a skewed perception of their finances according to a recent study that compared how much debt households thought they had with how much lenders said they actually had. Researchers compared family-reported figures from the Survey of Consumer Finances (SCF) with creditor-reported data from the Consumer Credit Panel (CCP). When it comes to secured debt such as mortgages, households's estimates were roughly on target. But households estimated that they owed about 40 percent less than their lenders said they owed on credit cards—about $440 billion compared to $731 billion. For student debts, families listed that their total student loans amounted to about 25 percent less than what appeared on credit reports.
The CDFI Fund is soliciting comments on its revisions to the Interim Rule for the CDFI Program. Through the CDFI Program, the CDFI Fund uses federal resources to invest in CDFIs and build their capacity to serve low-income people and communities that lack access to affordable financial products and services. The revised Interim Rule includes revisions necessary to implement the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, as well as technical corrections and other updates to the current rule. All comments must be submitted via the Federal e-Rulemaking Portal by October 30th, 2015.
A new proposal to repurpose a former Urban Partnership Bank branch in Chicago's South Side is drawing praise from its community. The new plan, created by developer Alisa Starks, would bring a four-screen movie theater on the main floor, a six-lane bowling alley in the basement and a kid-friendly restaurant and play area on the second floor. The project will be committed to local hiring and to contracting with minority- and women-owned businesses. The revised plan was roundly supported by residents at a recent community meeting, with many saying it was the type of plan they had hoped the developers would bring to the neighborhood. The plan replaces an initial proposal that envisioned bringing a McDonalds drive-thru to the location, drawing criticism from community activists.
Mission Valley Bank is sponsoring a fundraiser for Carousel Ranch, a facility that provides equestrian therapy for children with special needs. Carousel Ranch is just the latest charity to receive support from Mission Valley, which also supports the Boys & Girls Club, Samuel Dickson Family Health Center and the College of the Canyons Foundation. Carousel Ranch provides Equestrian therapy that allows special needs children to stretch their muscles, improve balance, practice hand-eye coordination and develop speech skills. “With the economy that took the turn that it did in the past two years, Mission Valley Bank looked into a way that it could respond to the ongoing needs of charities,” said Senior Vice President of Mission Valley Bank Marianne Cederlind.
Financial tech startups increasingly make social missions part of their raison d'être in addition to their digital goals to improve outdated financial services products. Some of these upstarts' battle cries are aimed at democratizing financial services at a time when banks are taking heat for charging their biggest fees to consumers who are living paycheck to paycheck. More affordabale pricing structures, easier-to-understand language and donations with each transaction are among the strategies the firms use to demonstrate mission. These disruptors with social missions baked into their DNAs have in their sights millennials, who often consider social good when choosing between competing options.
American Banker has named BankPlus and Community Bancshares of Mississippi among the best banks to work for. Community Bancshares offers full-time employees a 60% reimbursement on up to $600 worth of new clothes each spring and fall. It also offers leadership training to its rising banking stars. At BankPlus, employees get a day off each year as an anniversary gift and every five years receive a gift such as jewelry, furniture or a vacation. Top performers each quarter enjoy a lunch with executives, a $500 bonus and a commemorative coin. BankPlus has also introduced health incentives for employees. Its WellnessPlus initiative includes a spa program for stress, a weight-loss program and wellness seminars.
The Federal Reserve had expected to begin withdrawing its support for the nation’s economic recovery this year, but mounting evidence of a global slowdown could extend the era of easy money. Fed officials have signaled for months that they are getting closer to raising the central bank’s target interest rate and many investors had anticipated the milestone would come at the next Fed meeting in mid-September. But that timeline now appears less likely according to a growing list of prominent economists including Larry Summers and New York Fed President William Dudley. The ending of the Fed’s stimulus has the potential to roil financial markets already bruised by the slowdown in China.
A new report from The Food Trust of Virginia documents access to healthy and affordable food in Virginia. Virginia Community Capital has played a key role in the effort to bring healthy foods to communities across the state with its Virginia Fresh Food Loan Fund (VFFLF), a $10 million fund to address the unmet capital needs of healthy food enterprises throughout rural and urban regions in Virginia. The VFFLF seeks to improve access to healthy foods while also bolstering local businesses and creating jobs. The initiative comes at a time when more than 1.7 million Virginia residents, including over 480,000 children, live in low-income communities underserved by supermarkets.