Supporting businesses owned by people of color
$25 million microbusiness fund
The U.S. Bank Foundation and USBCDC will provide $25 million in grants and investments through a new microbusiness fund for businesses owned by women of color. The fund is focused on providing access to capital, technical assistance and networking. USBCDC will provide $20 million in debt capital to Black-led and women-focused community development financial institutions (CDFIs). U.S. Bank Foundation will provide $5 million in grants to support expansion, capacity building, technical assistance and mentorship/networking. More on the fund, including selected partners will be shared in the coming weeks.
Expanding finance opportunities for diverse businesses
U.S. Bank’s Global Trade and Supply Chain Finance teams will expand existing efforts to provide trade financing to more diverse businesses, with a focus on supply chain finance. The team will work with U.S. Bank corporate and commercial banking customers to optimize working capital for diverse-owned businesses. It will do this by providing bilateral access to U.S. Bank’s receivables purchase program so they can provide competitive payment terms to their buyers but be paid earlier than the due date. This will help free up much needed capital by improving cash flow and enhancing their sales effort.
Expanding USBCDC’s ongoing commitment to racial equity
USBCDC continues to look across its business for ways to deepen relationships with partners that are Black-owned, Black-led or are prioritizing racial equity in their work. For example, it’s prioritizing patient and lower-cost capital to Black-led CDFIs through a partnership with the African American Alliance of CDFI CEOs; removing barriers and providing stronger support to Black- led affordable housing developers; and using an intermediary community development entity (CDE) model to create opportunities for Black-led CDFIs and CDEs to earn revenue, build experience and receive their own New Markets Tax Credit allocation.
Doing business with diverse businesses
In 2020, U.S. Bank committed to doubling its Black-owned suppliers within the next 12 months. U.S. Bank is making great progress and is on track to achieving this goal. Examples of areas of progress includes new engagements in real estate appraisals, digital, technology, and construction.
In the Fall of 2019, U.S. Bank joined the Department of Treasury’s Mentor/Protégé program to provide vital support to Minority Deposit Institutions (MDIs). Since then, U.S. Bank has been providing developmental assistance and engaged in revenue generating opportunities with First Independence Bank, a Black Owned bank headquartered in Detroit, Michigan.
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