Bank of America Announces Additional $100 Million to Support Minority Small Business Owners, Communities
Bank of America announced an additional $100 million in low-cost deposits to minority depository institutions (MDIs), which will facilitate lending, housing, neighborhood revitalization and other banking services in minority and low- to moderate-income communities.
This program will double Bank of America’s existing $100 million in deposits in MDIs, part of the company’s industry leading $2 billion portfolio of loans, deposits and investments in Community Development Financial Institutions (CDFIs) and MDIs.
These low-cost deposits will help MDIs expand their lending capacity and leverage the investments made by Bank of America and other institutions across the U.S., as well as the U.S. Department of Treasury’s Emergency Capital Investment Program (ECIP).
“It is well recognized that MDIs are a critical resource to minority and underserved communities by providing banking services, creating jobs and helping businesses grow,” said D. Steve Boland, Chief Administrative Officer of Bank of America. “As a founding member of the Economic Opportunity Coalition, we are committed to finding innovative ways to scale and expand the reach of our capital to provide access to economic opportunities and support diverse communities across the country.”
This builds on the company’s longstanding work to advance racial equality and economic opportunity, including $42.5 million in equity investments to 22 MDI and CDFI banks, of which, Bank of America will acquire up to 4.9% of common equity. It also includes our commitment of $350 million to over 100 private equity funds that provide capital to minority and women entrepreneurs and small business owners.
MDIs are federal insured depository institutions for which (1) 51% or more of the voting stock is owned by minority individuals; or (2) a majority of the board of directors is minority and the community that the institution serves is predominantly minority.
Source: Bank of America