ATLANTA–(BUSINESS WIRE)– Black economic solutions and regulatory specialists announced on Monday the formation of the Ebony Bank Fund and National Black Bank Foundation, tandem initiatives to nurture Black-owned banking institutions by way of a historic $250 million direct investment of tier 1 money.
The Fund’s investment will enable Ebony banking institutions to help make $2.5 billion in brand new loans. The building blocks, a nonprofit, will simultaneously educate the general public about the role that is essential organizations provide through economic literacy and wealth-building programs for underbanked folks of color.
“we now have a century of information that shows BlackBanksMatter, however their capacity to expand credit to Ebony business owners and households happens to be stunted by undercapitalization,” stated Ashley Bell, Ebony Bank Fund co-founder and partner in the law that is global Dentons. “The Ebony Bank Fund will urgently deal with the challenge that is fundamental Ebony banking institutions from scaling to serve our community: meaningful use of money.”
Banks can simply produce credit approximately comparable to ten times their tier 1 money, which can be produced from interest on deposits, banking costs, while the purchase of stock. With philanthropic and business lovers including LendingTree, Dentons, KPMG and Comer Capital, the Black Bank Fund promises to purchase upwards of $250 million non-cumulative, non-voting, favored stock in Ebony banking institutions by 2025.