Chicago Deposits $20M In City's Last Black-Owned Bank
The investment is the first step toward reducing disparity in the city.
The Illinois Service Federal and Loan Association (ISF) is the last black-owned bank in Chicago.
Like what you're reading?
Get more in your inbox.
According to CBS Chicago, Kurt Summers, the city's treasurer, has decided to make a momentous investment in the bank.
Summers announced Monday that the city will be depositing $20 million into the black-owned institution.
At the announcement, the treasurer called this investment his department's first step towards addressing the city's history of segregation, something that he claims is one of the root causes of the city's current violence.
So, what will this investment mean for the city?
According to Summers, the contribution will increase the number of successful black-owned businesses in Chicago.
"If we’re going to be serious about supporting those communities and supporting community banks and what they do for small businesses, we have to look for opportunities like this," he said, Business Day reports.
When going to large, national banks, Chicago's black business owners only receive the full amount of their loan requests 47 percent of the time. White business owners receive all the money they ask for 76 percent of the time.
Summers hopes that this investment will give black small business owners some place to go to find funding for their endeavors.
“The community banks are often more capable of evaluating the risks of local borrowers than large remote financial institutions," said Summers.
This is only one of the changes Chicago politicians are anticipating following the deposit.
Alderman Roderick Sawyer told CBS that he believes that this investment will help resolve the issue of economic disparity in Chicago, and, ultimately, even violence.
Papa Kwesi Nduom, the chairperson of the Illinois Service Federal and Loan Association, agrees with him. Nduom said the deposit will give his bank a "much-needed boost to our financial foundation, ensuring that we can strengthen the economic base of our communities and help people fulfill their dreams."
The black-owned bank has been providing services to the black communities of the South Side of Chicago for more than 80 years.
With Summers and the city backing it up, it is bound to continue serving Chicago for more years to come.