California Community Economic Development Association (CCEDA) in collaboration with Rise Economy, formerly known as the Community Reinvestment Coalition, has released the results of a survey aimed at illuminating the funding landscape for Community Development Corporations (CDCs) and Community Development Financial Institutions (CDFIs) across California. Conducted between August 2nd and September 21st, 2023, the survey reached out to over 100 CDCs and CDFIs, receiving 45 responses (40%).
“This survey of CDCs and CDFIs not only sheds light on their financial relationships with banks but also uncovers trends, gaps, and unveils growth prospects within the community development sector,” stated CCEDA’s Board Chair and the CEO of LA based PACE, Kerry Doi.
Noteworthy findings include the diversity of banking relationships, the engagement with both major institutions and community-oriented banks, and opportunities for growth and collaboration with startups. Efforts were directed towards gaining an understanding of the financial support received by these entities from the identified banks. The top two banks cited by CDCs and CDFIs, especially BIPOC led CDFIs, were JP Morgan Chase and Wells Fargo Bank, while a large number of CDCs, more almost 40%, pointed to NO bank support.
“This report stands as an important instrument in encouraging bank backing for the invaluable efforts of CDCs and CDFIs in California,” stated Roberto Barragan, Executive Director at CCEDA. “We see this report as highlighting which banks support the good work CDCs and CDFIs provide in California and which don’t, emphasizing the lack of support by a number of historically California focused commercial banks.
Fifty five banks were listed in the survey including JPMorgan Chase (including First Republic), Bank of America, Citibank, Wells Fargo Bank, US Bank (including Union Bank), PNC Bank, Goldman Sachs, Capital One, BMO (including Bank of the West), First Citizens Bank, Morgan Stanley, Ally Bank, HSBC, City National Bank, Comerica Bank, Western Alliance Bank, EastWest Bank, Umpqua Bank, Pacific Western Bank, First Bank, Cathay Bank, Pacific Premier Bank, Bank of Hope, Mechanics Bank, Banner Bank, First Foundation Bank, and Farmers and Merchants Bank (Long Beach).
Stay Ahead of the Financial Curve with Our Latest Fintech News Updates!