Business

Minority Banks Shut Out of Federal Tax-Credit Program

Published

9 years ago

July 14, 2015

Oakland Post

Industrial Bank’s Georgia Avenue branch in Northwest D.C. (Courtesy photo)

Special to the NNPA from The Washington Informer

Minority-owned banks are crying foul about the federal government snubbing them for tax credits they say could generate economic development in the nation’s most needy communities.

The Community Development Financial Institutions (CDFI) Fund, an arm of the Treasury Department, issued in June $3.5 billion in New Markets Tax Credit (NMTC) allocation to 76 entities across the country to spur economic development.

However, none were awarded to the nation’s minority banks, despite those institutions claiming the longest track records of deploying capital in the nation’s most underserved areas.

“The NMTC program has great potential to be part of a comprehensive economic solution in America’s inner cities, most of which still have not recovered from the Great Recession,” said Preston Pinkett, CEO of City National Bank and chairman of the bankers association. “But the groups best equipped to make those investments, minority banks — many of which have been in service for over 100 years — have largely been shut out of the NMTC program. We need our CDFI Fund to do more; we need a real change that will allow us to receive allocations so we can use these resources to improve our communities.”

The federal tax-credit program provides a tax credit to investors who invest in projects or small businesses in those communities by funneling their investments through the recipients of tax credit allocation.

According to the CDFI Fund’s Award Book, only six awards — less than 8 percent — went to minority-controlled entities of any kind, and those groups received only $165 million, under 5 percent of the total dollar amount of allocation.

“The absence of a single minority bank raises much concern,” said Michael Grant, president of the National Bankers Association. “In 2009, the General Accounting Office issued a report detailing the disparity in NMTC awards to minority entities. The numbers have actually gotten worse, not better.”

A 2009 study by the Government Accountability Office indicated that only about 9 percent of minority entities were successful when applying for NMTCs, while non-minority entities had three times the success rate, winning 27 percent of the time. According to GAO, although the program is highly competitive, minority entities have less than a one in three chance of any other type of entity to receive an award.1 Minority banks have had even lower success rates than minority entities overall.

“By our estimates, less than 2 percent of the $450 billion in NMTCs issued over the past 12 years has gone to minority banks,” said Doyle Mitchell, CEO of Industrial Bank of Washington, D.C. and former chairman of the bankers association. “Some of our banks have been deploying capital in the poorest neighborhoods in America for over 100 years, and we think the CDFI Fund should review the program to ensure that applications by minority and other small CDFI banks are evaluated on criteria that reflects their position as regulated institutions operating in distressed areas, which is significantly different from non-regulated or larger institution applicants.”

Alden McDonald, CEO of Liberty Bank in New Orleans, said the imbalance would be even more pronounced had it not been for funds his bank received after Hurricane Katrina.

Oakland Post

Posts by Oakland Post

Up Next

Rushing the Corner Office: This MBA Program Is for NFL Stars

Don't Miss

Why Media Shouldn’t Buy Big Coal’s ‘Energy Poverty’ Argument

Oakland Post

Click to comment

Black History

Emeline King: A Trailblazer in the Automotive Industry

Emeline King is recognized as the first African American female transportation designer at the Ford Motor Company. Let’s take a look at her life and career at the Ford Motor Company.

Published

2 days ago

November 26, 2024

Oakland Post

Transportation designer Emeline King. Photo courtesy of Emeline King.

By Tamara Shiloh

Emeline King is recognized as the first African American female transportation designer at the Ford Motor Company.

Let’s take a look at her life and career at the Ford Motor Company.

King’s fascination with cars began during her childhood. Growing up, she was captivated by the sleek designs and mechanical complexities of automobiles. She loved playing with toy cars and considered it an insult if anyone gave her a doll.

King pursued her interest in cars by studying at the ArtCenter College of Design in Pasadena. There, she improved her skills in transportation design, gaining the technical expertise and artistic vision she needed to break into the male-dominated industry.

However, her true inspiration came from her father, Earnest O. King, Sr., who worked for Ford as a Fabrication Specialist. She remembered the father-daughter trips to the auto shows, and the Saturday mornings with the famous Black sculptor, Oscar Graves, who her father assisted in some of his commissioned art works.

She said Graves would mentor her in clay relief sculptures. She was always fascinated by the smell of clay that was a constant in his studio.

However, it was her ﬁrst visit to her father’s job that became the catalyst for King to want a career in transportation design. At the company’s annual employee Christmas parties, she got the chance to meet his co-workers and learned about the roles they played in the auto industry. It was a chance to see some great cars, too.

Her career at Ford began in the 1980s, when women — particularly women of color –were scarcely represented in the automotive industry. King’s role at Ford was groundbreaking, as she became the first African American woman to work as a transportation designer at the company.

At Ford Design, she worked on the Ford Mustang SN-95’s interior. She also made several design contributions on other vehicles, too, including the interior components of the 1989 Thunderbird, the 1989 Corporate Steering Wheel, the 1989 Thunderbird Wheel/Wheel cover design program, the 1990 Thunderbird Super Coupe, the 1993 Mach III, the 1994 Mustang, to name a few.

King also served three foreign assignments: Turin Italy; Koln, Germany; and Brentwood, Essex, England — designing Ford cars for Europe.

Leaving Ford after about 25 years of service and along with her many speaking engagements, she wrote an autobiography about being Ford’s first female African American transportation designer titled, “What Do You Mean A Black Girl Can’t Design Cars? She Did It!”

She’s quoted as saying, “I’m now so proud to have written a book that I hope will inspire young girls and boys to never give up. To influence them so that they can stay focused and alert, and so they never look back. There are mentors who are placed in our lives to serve as our ‘Bridges to Destinations’ and allow us to cross over them to reach our dreams. Hoping they gain inspiration from my book, my motto for them is simple: ‘OPPORTUNITY IS NOW, SO GRAB IT! IF I DID IT, SO CAN YOU!”

Oakland Post

Posts by Oakland Post

Activism

OCCUR Hosts “Faith Forward” Conference in Oakland

The conference featured Congresswoman-elect Lateefah Simon, who will begin her term representing California’s 12th Congressional District in the U.S. House of Representatives in January.
Simon was honored with a special recognition from OCCUR for her civic and nonprofit leadership.

Published

4 days ago

November 24, 2024

Oakland Post

President and CEO of OCCUR addresses the audience at OCCUR Faith Forward 2024 Conference at Resurrection Church. Photo by Carla Thomas.

By Carla Thomas

The Oakland Citizens Committee for Urban Renewal (OCCUR) hosted its Faith Forward 2024 Conference on Nov. 8 at Resurrection Church in Oakland.

The conference featured Congresswoman-elect Lateefah Simon, who will begin her term representing California’s 12^th Congressional District in the U.S. House of Representatives in January.

Simon was honored with a special recognition from OCCUR for her civic and nonprofit leadership. During her remarks, She commended nonprofits making a difference, and shared how she looked forward to representing Oakland and surrounding areas.

Simon also encouraged attendees to continue fighting despite their concerns about the presidential election results. She also cautioned that there may be resources that are discontinued as a result.

“We know the assignment. We have many of the resources right within our own community, and we will be ok,” Simon assured the audience.

The conference led by OCCUR president, Dr. David B. Franklin, also featured panels on funding opportunities, case studies, economic development, sustainable housing solutions, and organizing for action.

“In order for organizations serving the community to thrive, everyone must collaborate, share resources, and not operate in silos,” said Franklin.

Speakers included San Francisco Foundation CEO, Fred Blackwell, San Francisco Foundation FAITHS Program Director Dr. Michelle Chambers, and Kingmakers of Oakland Founder, Chris Chatmon. Guests were briefed on how Kingmakers of Oakland has gone from a budget of zero to several million and is set to acquire 200 acres of property to expand their programs serving young boys. The leadership at the San Francisco Foundation encouraged nonprofits, churches, and community leaders to work together, especially when donations and funding numbers are lower.

Ben Bartlett of Berkeley City Council; Trevor Parham, CEO of Oakstop; and CEO of the Lao Family Community Development, Inc., Kathy Chao Rothberg, inspired attendees with stories about their journeys in the nonprofit sector.

Additional speakers included Deka Dike, CEO of Omatachi; Landis Green, CEO of DGS Strategies; Sasha Werblin, Director of Economic Development, LISC Bay Area; Oakland City Councilmember Treva Reid; Faith and Justice Organizer of East Bay Housing Organizations, Ronnie Boyd; and Todd Bendon, Executive Director of Faith in Action East Bay; among others.

The event allowed community leaders, faith-based leaders, and nonprofits to gain Insight on how to strengthen their profits financially, and communally.

OCCUR has served the community for over 70 years supporting the wellbeing of historically marginalized communities with collaborative strategies. For more information visit occurnow.org

Oakland Post

Posts by Oakland Post

Activism

Bank of America Grants $200,000 to Richmond Housing Nonprofit

RNHS has provided housing services to Richmond residents since 1981. The organization develops, acquires, and/or rehabilitates single-family homes and housing developments in blighted or vacant lots in order to make them available as affordable homes for rent or purchase to low-income families.

Published

4 days ago

November 24, 2024

Oakland Post

Photo by RDNE Stock via Pexels. Courtesy The Richmond Standard.

The Richmond Standard

Richmond Neighborhood Housing Services, Inc. (RNHS) was one of two Bay Area nonprofits awarded a $200,000 grant over two years from Bank of America’s Neighborhood Builders program.

The nonprofit also serves residents through education programs involving financial literacy programs, home loans, foreclosure prevention, and affordable rental counseling.

RNHS plans to use the $200,000 Bank of America grant to hire leadership staff, and to expand its Emerging Developers Program and Restoring Neighborhoods Program.

Through this grant program, RNHS will also benefit from comprehensive leadership training for its executive director and an emerging leader.

Since the Neighborhood Builders program’s inception in 2004, 59 nonprofits have been selected in San Francisco and the East Bay, with the bank investing nearly $12 million in philanthropic capital into these local organizations.

Along with RNHS, San Francisco-based mental health nonprofit RAMS also won a $200,000 grant this year.

“We’re proud to include RAMS and RNHS as the 2024 Neighborhood Builders,” said Gioia McCarthy, president of Bank of America San Francisco-East Bay. “Countless individuals, families and neighborhoods have felt the profound impact that these 59 Neighborhood Builder nonprofits have had in our area over the past two decades.”