Carver Federal Savings Bank
Carver Federal Savings Bank has served African-American communities traditionally denied access to debt capital for more than 60 years. From its headquarters in Harlem, the bank lends to consumers, businesses, non-profits, and faith-based institutions throughout New York City. Receiving accolades from the community, and regulatory agencies, Carver is a national leader among community development banks and minority owned institutions.
"Buy Black! Bank Black!" The chant was heard frequently over the course of 2020 during protests and conversations surrounding racial justice in America. It turns out it was more than just a chant. Over the past year, Black banks have a notable uptick in interest on the heels of this social movement. "We've seen more than 30 million dollars of new deposit relationships come to us through large corporate partners, non-profit organizations and customers over the past few months," said Michael Pugh, CEO and President of Carver Bank. "I can tell you that it's at least a forty percent increase above where we've seen our historical trends."
Carver Bancorp, Inc., the holding company for Carver Federal Savings Bank, a certified Minority Depository Institution (MDI) and Community Development Financial Institution (CDFI), announced that JPMorgan Chase has made a long-term equity investment of approximately $6 million in common and preferred shares of the Company. JPMorgan Chase's equity investment represents approximately 3.4 percent of the Company's issued and outstanding common stock at purchase. In addition, the investment includes 5,000 shares of the Company's Series F preferred stock. Carver expects to utilize the majority of the proceeds from JPMorgan Chase's investment to ramp up its lending activities to Minority and Women Business Entrepreneurs and expand its financial education programs in the diverse low-to-moderate income communities it serves.
NCIF invited 10 partner CDFI and Minority Banks to identify small business customers that are integral to their local communities and needed support to sustain their respective businesses through the pandemic. NCIF used over $100,000 of its own funds to pilot an unrestricted microgrant program as gap funding to these customers. Our first batch of microgrants was given to social entrepreneurs, retail businesses, community facilities, affordable housing organizations, arts nonprofits, and other small businesses across the country. These CDBA members are First Southwest Bank, Carver Federal Savings Bank, City First Bank of DC, Community Bank of the Bay, First Eagle Bank, Industrial Bank, Native American Bank, Providence Bank & Trust, Southern Bancorp, and United Bank.