by John D. Hawke, Jr., Comptroller of the Currency
Small businesses are the bedrock of our economy. They employ more than half of all private-sector workers and generate up to 80 percent of all new net jobs each year - and they do it by overcoming countless challenges. In this issue of Community Developments we look at what banks and other financial institutions, in partnership with federal and state programs and with community development organizations, are doing to support small businesses - particularly minority-owned enterprises - by providing them innovative loans, investments, and technical assistance. Our contributors have good stories to tell. They also make a strong case for doing even more - because investing in small businesses and community development is a profitable strategy for banks. Full story.
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by Stanley M. Weeks , Senior Vice President and Chief Credit Officer, City National Bank of New Jersey
The only commercial bank in New Jersey owned by African-Americans, City National Bank (CNB) exists to serve the underserved. Since 1994 CNB has made nearly $175 million in loans, most of which are helping to revitalize Newark. The bank has been able to make its greatest impact by making loans to churches, small businesses, and area nonprofit organizations engaged in community economic development. Such loans, often made in conjunction with a variety of Small Business Administration and state programs, account for more than 50 percent of the bank's total loan portfolio. Typical borrowers include an optometry practice, a carwash-and-auto-accessories store, and a daycare center - the kinds of enterprises that can stabilize long-stagnant neighborhoods. CNB also provides homebuyer training and loans to first-time homebuyers. Full story. |
