Union Bank Agreement
Over twenty CRC member organizations participated in or helped guide the negotiations that resulted in the increased commitment. As a result of CRC advocacy, Union Bank will, through 2015:
- Increase originations of small loans (under $150,000) to small businesses (under $1 million in annual revenue), businesses located in low and moderate income census areas, and minority and women owned businesses.
- Invest in Community Development Financial Institutions and Community Development Corporations that strengthen small business creation and growth;
- Increase grant support by $750,000 annually for technical assistance and credit assistance providers serving small businesses; increase referrals of denied small business loan applicants to organizations that can provide financing or other assistance to enhance loan worthiness; and meet with California’s state loan guarantee programs to investigate new partnerships.
- Extending its diversity supplier program into the SBBT service area.
- Improve its Economic Opportunity Mortgage loan product; provide $2.5 million to help nonprofit agencies acquire and rehabilitate housing; and increase support for homebuyer education;
- Provide $10 million to support predevelopment activities necessary to increase the affordable housing stock.
- Increase lending and investment in non-metropolitan areas where bank resources are critically needed.
- Create a low cost banking account product that will be transparent and affordable for the low and moderate income market, the unbanked customer, customers that are currently unable to have a bank account due to their ChexSystems history, or customers simply seeking a lower cost product with simplified features, functionality and capabilities to reduce the opportunity for overdraft activity.
- Honor commitments made by SBBT to its local partners, such as through the Federal Home Loan Bank WISH program.
- Provide grants to support community development, at least at $10 million, increasing to $11 million in 2013 and $12 million in 2014.CRC members successfully negotiated with Union Bank to increase the bank’s commitments in concert with their acquisition of a small regional bank, Santa Barbara Bank and Trust.
Click here to read the complete agreement.