The Consumer Financial Protection Bureau (Bureau) released a panel report as part of its rulemaking process under Dodd-Frank Act Section 1071 governing the collection and reporting of small business lending data. A panel was convened pursuant to the Small Business Regulatory Enforcement Fairness Act, comprised of representatives of the Bureau, the Office of Advocacy of the Small Business Administration, and the Office of Management and Budget. The panel consulted with representatives of small entities likely to be affected directly by a Section 1071 regulation, referred to as small entity representatives or SERs. These representatives included Cynthia Newell of City First Bank of DC and Jane Henderson of Virginia Community Capital.
Even as Covid-19 cases surge world-wide, the arrival of viable vaccines holds the promise of a return to something resembling normality by the middle of next year. But the commercial real-estate sector may never get back to normal, and that could spell trouble for banks. Many banks are concentrated in and dependent on commercial property lending. Bankshold half of all commercial real-estate loans. The 5,000 or so U.S. community banks, withabout a third of total assets, are two to three times as concentrated in commercial real-estate lending as the approximately 30 larger banks. Problems in commercial real estate can hurt banks in two ways. Losses on existing loanscan damage earnings directly, and a correction can reduce future lending volumes,impairing an important driver of earnings. Based on what we know now, things don’t look good.
A group of Black-owned banks will refinance a major construction loan for the Atlanta Hawks professional basketball team in a deal that organizers hope will spur more investment in Black-owned banks. Led by Carver State Bank in Savannah, Ga., the group of 11 banks will provide a $35 million syndicated loan to the Hawks for the refinancing of the Emory Sports Medicine Complex, the Hawks' three-year-old, 90,000-square-foot training and practice facility that also houses Emory Healthcare's sports medicine program and sports science and research division.
Darrin Williams, a former lawyer, rose from relative obscurity when he was tapped to be a member of President Trump's Great American Economic Revival initiative, which also included Jamie Dimon, chairman and chief executive officer of JPMorgan Chase & Co., and David Solomon, chairman and CEO of Goldman Sachs Group Inc. Their conversations with Trump and Secretary of the Treasury Steven Mnuchin ultimately led the Small Business Administration, which administered the $350 billion program, to earmark the money for so-called CDFIs. Southern Bancorp is one of the largest of about 1,100 such institutions, which the Clinton administration chartered to invest in the poorest U.S. communities. This summer, Williams’s bank wrote $111 million in PPP loans and gave away $125,000 to small businesses in the most Covid-devastated places in the Mississippi Delta.
On behalf of the Community Development Bankers Association (CDBA), we cordially invite you to the 2020 Virtual Peer Forum. CDBA's 2020 Virtual Peer Forum will take place during the afternoons of the first three weeks of December.
We pleased to announce the following Keynote Speakers: Jelena McWilliams, Chairman, Federal Deposit Insurance Corporation; Brian Brooks, Acting Comptroller of the Currency, Office of the Comptroller of the Currency; Jodie Harris, Director, Community Development Financial Institutions Fund, US Department of Treasury; Dane Smith, Managing Director, FSG
The CDBA Peer Forum is the "must-attend" annual event for the Community Development Banking sector. THE BEST PART: Registration is $500 for CDBA members and $600 for non-member banks. One registration fee allows an UNLIMITED number of attendees from your bank to attend ANY AND ALL sessions. Given the virtual format and savings on travel and accommodation costs, we hope to bring our robust programming to everyone at your bank who wants to participate. This offer extends to your bank’s Board Members, too.
While we cannot meet in person, CDBA is planning over 15 hours of programming, including keynote speakers, panels on current issues, and interactive sessions. Session themes include leading with a purpose-driven culture, the post-election political outlook, managing liquidity, strategies to promote diversity, equity & inclusion at your bank, product innovations, and much more.
A half-century ago, the federal government set out to attack the racial wealth gap by supporting Black-owned banks. Policy makers hoped the banks would lend to Black communities sidelined by the mainstream financial system. But five decades of federal financial and regulatory support have failed to boost America's Black-owned banks. The majority have disappeared under the burden of soured loans, bigger competitors created by mergers and financial downturns that hit small lenders hard. Fifteen years ago America had 36 Black-owned banks, government data show. Now there are 18. Now a new generation of entrepreneurs, companies and regulators is trying a different strategy. They are promising to strengthen Black-owned banks by building up their capital with private investments and giving them new ways to earn money with hundreds of millions in big corporate deposits. Their hope is that this approach will ultimately improve Black communities’ access to capital. CDBA Members Optus Bank, Broadway Federal Bank, and City First Bank of DC are featured in the article.
When COVID-19 hit, Spring Bank responded by supporting their small business and nonprofit partners when they needed it most. Hours after the CARES Act passed in April of this year, their lending team got to work to assist organizations with their applications for a Payment Protection Program (PPP) loan. Spring Bank is proud to report that as of this month, they secured 360 PPP loans–valued at $86.8 million–for small businesses and nonprofits in the New York City area. With these funds, organizations retained over 5,000 jobs.
The Federal Reserve is lowering the minimum loan size for its middle-market business rescue program by more than half to make the program more available to smaller businesses. The central bank said Friday that small businesses seeking credit from the Main Street Lending Program can access loans as small as $100,000, down from the previous cutoff of $250,000, and that fees will be adjusted accordingly. The $600 billion program, which is funded by the Fed and the Treasury Department through the Coronavirus Aid, Relief and Economic Security Act, is available to businesses with fewer than 15,000 employees or less than $5 billion in annual revenue.
Adecade ago, in the last economic crisis, mainstream banks abandoned Dianna Bowser and the Southside Community Development and Housing Corporation, where she's executive director. Founded in 1988, the nonprofit builds homes and provides counseling for first-time homeowners in and around Richmond, Virginia. ut that’s when Bowser first encountered Virginia Community Capital, a relatively new bank at the time. The bank stepped in to finance a major construction project for her organization. It has an unusual nonprofit ownership structure, a mission to serve underserved or disinvested communities, and startup capital that came from the state instead of private investors like most banks. The relationship has grown ever since.
Promontory recently rebranded itself with a pithier name: IntraFi Network. The new name is meant to reflect the company's core mission of partnering with banks and to help it grow and move beyond the service for which it's best known: reciprocal deposits. The company built a system that enables depositors — such as municipal departments, public schools and high-net-worth individuals — to hold large sums with their primary institution without losing Federal Deposit Insurance Corp. coverage. IntraFi parcels out balances that exceed the $250,000 FDIC limit to other banks within the network. This service also helps community development financial institutions and minority depository institutions gather the capital they need to lend to underserved communities. Customers keep their relationship with their own bank and don't know that IntraFi is involved. Bill Dana, vice chairman of the $261.5 million-asset Central Bank of Kansas City in Missouri, notes that it’s difficult for CDFIs to attract high-balance depositors. “You’re serving a low- to moderate-income community, so by definition there are not a lot of deposit dollars available in your marketplace.”