HOPE Credit Union receives $ 88 million to support minority-owned businesses


Jackson-based HOPE Credit Union received $ 88 million as part of a nationwide effort to increase lending to minority-owned businesses and people with limited access to banking services.

The Treasury released a total of $ 8.7 billion to be distributed among 186 financial institutions under its emergency capital investment program, which was included in a 2021 stimulus package passed by Congress. The program is the largest community finance development program ever.

The funding is the largest investment ever made to HOPE Credit Union since its inception in 1994.

Vice President Kamala Harris announced the landmark investment at the Freedman’s Bank Forum, hosted by the Treasury Department on Tuesday in Washington, DC

“The wealth gap persists today, the homeownership gap persists,” Harris said. “Black entrepreneurs are three times more likely to report that a lack of access to capital negatively affects their profit margins. “

The program was created this year in response to the economic distress caused by COVID-19, which has disproportionately affected small businesses and minority-owned businesses. Despite making up 13.4% of the nation’s population, black Americans control only 4.3% of household wealth, according to the Federal Reserve.

The credit union had to apply for the financing, which comes in the form of a 30-year low-interest loan. Access to funds makes it easier for HOPE and other grantees to provide small business loans, grants and forbearance to people living in underserved, low-income areas.

The Freedman’s Savings and Trust Company, commonly known as the Freedman’s Bank, was established by the US government over 150 years ago to help newly emancipated African Americans become financially stable. Now, the forum that bears his name aims to discuss systemic wealth gaps in the United States.

“It is only fitting that (Tuesday’s) historic announcement of the largest ever investment in community development finance comes at a commemoration of Freedman’s Bank – an institution created to provide former slaves with access fair to the banking system, ”HOPE CEO Bill Bill Bynum said in a statement.

“As a first financial responder and a long-time advocate for policies, practices and investments that level the playing field in the financial game, HOPE looks forward to building on Freedman’s Bank’s proud heritage by ensuring that the resources of the emergency capital investment program are reaching those hardest hit by COVID. -19, fill the gaps in the banking system and promote equitable economic prosperity, especially in communities of color in the Deep South. “

Since its inception, HOPE has generated more than $ 3.1 billion in funding in Mississippi, Alabama, Arkansas and Louisiana.

HOPE Credit Union was among the recipients of $ 10 million from Netflix after the streaming company pledged to invest 2% of its cash in banks and organizations supporting black communities across the country. HOPE is also working with Netflix on a streaming tv series which will highlight banking discrimination.

TRACK THE MONEY: How does Mississippi spend billions of federal funds that flow through the state?

Editor’s Note: Bill Bynum sits on the Mississippi Today board of directors.

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HOPE Credit Union receives $ 88 million to support minority-owned businesses

Jackson-HOPE Credit Union, based at HOPE, received $ 88 million as part of a nationwide effort to increase lending to minority-owned businesses and people with limited access to banking services.

The Treasury released a total of $ 8.7 billion to be distributed among 186 financial institutions through its emergency capital investment program, which was included in a 2021 stimulus package passed by Congress. The program is the largest community finance development program ever.

The funding is the largest investment ever made to HOPE Credit Union since its inception in 1994.

Vice President Kamala Harris announced this landmark investment at the Freedman’s Bank Forum, hosted by the Treasury Department on Tuesday in Washington, DC

“The wealth gap persists today, the homeownership gap persists,” Harris said. “Black entrepreneurs are three times more likely to report that a lack of access to capital negatively affects their profit margins.”

The program was created this year in response to the economic distress caused by COVID-19, which disproportionately small businesses and minority-owned businesses. Despite making up 13.4% of the nation’s population, black Americans control only 4.3% of household wealth, according to the Federal Reserve.

The credit union had to apply to receive the financing, which is in the form of a 30-year low-interest loan. Access to funds makes it easier for HOPE and other grantees to provide small business loans, grants and forbearance to people living in underserved, low-income areas.

Freedman’s Savings and Trust Company, commonly known as the Freedman’s Bank, was established by the US government over 150 years ago to help newly emancipated African Americans become financially stable. Now, the forum that bears his name aims to discuss systemic wealth gaps in the United States.

“It is only fitting that (Tuesday’s) historic announcement of the largest ever investment in community development finance comes at a commemoration of Freedman’s Bank – an institution created to provide former slaves with access fair to the banking system, ”HOPE CEO Bill Bynum said in a statement.

“As a leading financial responder and long-time advocate for policies, practices and investments that level the playing field in the financial game, HOPE looks forward to building on Freedman’s Bank’s proud heritage by ensuring that Emergency Capital Investment Program resources reach those hardest hit by COVID-19, fill banking system loopholes and advance equitable economic prosperity, especially in communities of color in the Deep South. “

Since its founding, HOPE has generated more than $ 3.1 billion in funding throughout Mississippi, Alabama, Arkansas and Louisiana.

HOPE Credit Union was one of the beneficiaries of $ 10 million from Netflix after the streaming company pledged to invest 2% of its cash in banks and organizations supporting black communities across the country. HOPE is also working with Netflix on a streaming tv series which will highlight banking discrimination.

TRACK THE MONEY:How does Mississippi spend billions of federal dollars crossing the state?

Editor’s Note: Bill Bynum sits on the Mississippi Today Board of Directors.

This item appeared for the first time on Mississippi Today and is republished here under a Creative Commons license.

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