Connect with us

Business

Minority Banks Shut Out of Federal Tax-Credit Program

Published

on

Industrial Bank's Georgia Avenue branch in Northwest D.C. (Courtesy photo)

Industrial Bank’s Georgia Avenue branch in Northwest D.C. (Courtesy photo)

Special to the NNPA from The Washington Informer

Minority-owned banks are crying foul about the federal government snubbing them for tax credits they say could generate economic development in the nation’s most needy communities.

The Community Development Financial Institutions (CDFI) Fund, an arm of the Treasury Department, issued in June $3.5 billion in New Markets Tax Credit (NMTC) allocation to 76 entities across the country to spur economic development.

However, none were awarded to the nation’s minority banks, despite those institutions claiming the longest track records of deploying capital in the nation’s most underserved areas.

“The NMTC program has great potential to be part of a comprehensive economic solution in America’s inner cities, most of which still have not recovered from the Great Recession,” said Preston Pinkett, CEO of City National Bank and chairman of the bankers association. “But the groups best equipped to make those investments, minority banks — many of which have been in service for over 100 years — have largely been shut out of the NMTC program. We need our CDFI Fund to do more; we need a real change that will allow us to receive allocations so we can use these resources to improve our communities.”

The federal tax-credit program provides a tax credit to investors who invest in projects or small businesses in those communities by funneling their investments through the recipients of tax credit allocation.

According to the CDFI Fund’s Award Book, only six awards — less than 8 percent — went to minority-controlled entities of any kind, and those groups received only $165 million, under 5 percent of the total dollar amount of allocation.

“The absence of a single minority bank raises much concern,” said Michael Grant, president of the National Bankers Association. “In 2009, the General Accounting Office issued a report detailing the disparity in NMTC awards to minority entities. The numbers have actually gotten worse, not better.”

A 2009 study by the Government Accountability Office indicated that only about 9 percent of minority entities were successful when applying for NMTCs, while non-minority entities had three times the success rate, winning 27 percent of the time. According to GAO, although the program is highly competitive, minority entities have less than a one in three chance of any other type of entity to receive an award.1 Minority banks have had even lower success rates than minority entities overall.

“By our estimates, less than 2 percent of the $450 billion in NMTCs issued over the past 12 years has gone to minority banks,” said Doyle Mitchell, CEO of Industrial Bank of Washington, D.C. and former chairman of the bankers association. “Some of our banks have been deploying capital in the poorest neighborhoods in America for over 100 years, and we think the CDFI Fund should review the program to ensure that applications by minority and other small CDFI banks are evaluated on criteria that reflects their position as regulated institutions operating in distressed areas, which is significantly different from non-regulated or larger institution applicants.”

Alden McDonald, CEO of Liberty Bank in New Orleans, said the imbalance would be even more pronounced had it not been for funds his bank received after Hurricane Katrina.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Starting This Summer, California Car Buyers Can Get an Instant $3500 Off the Cost of Electric Vehicles

OAKLAND POST — Beginning later this summer, eligible Californians can receive a $3,500 rebate on new zero-emission vehicles with a manufacturer’s suggested retail price of up to $50,000. Buyers purchasing qualifying used electric vehicles priced at up to $25,000 can receive a $1,750 rebate. The rebate will be applied directly at participating dealerships, allowing buyers to receive the discount immediately instead of waiting for reimbursement.

Published

on

iStock.

California residents purchasing their first zero-emission vehicle will soon be eligible for an instant rebate of up to $3,500 under a new state program aimed at making electric vehicles more affordable.

Gov. Gavin Newsom signed Senate Bill (SB) 168 on July 16, creating the MyFirstEV program as part of California’s 2026-27 state budget. The initiative dedicates $135.5 million in state funding for point-of-sale rebates, which participating automakers will match dollar for dollar. State officials said the combined investment will provide $270 million in savings for first-time electric vehicle buyers.

Beginning later this summer, eligible Californians can receive a $3,500 rebate on new zero-emission vehicles with a manufacturer’s suggested retail price of up to $50,000. Buyers purchasing qualifying used electric vehicles priced at up to $25,000 can receive a $1,750 rebate. The rebate will be applied directly at participating dealerships, allowing buyers to receive the discount immediately instead of waiting for reimbursement.

“With our new instant rebate program for electric vehicles, we’re making it easier for families to drive clean, breathe clean, and keep more money in their pockets,” Newsom said in a statement.

The MyFirstEV program is part of a broader $600 million investment in California’s clean transportation economy included in the state budget. The funding package also provides $150 million for the Community Air Protection Program, $19.8 million for the Clean Cars 4 All program for lower-income residents, $35 million for clean off-road equipment through the Air Quality Improvement Program, $135.5 million for the Clean Truck and Bus Voucher Incentive Project, and $130 million for the Carl Moyer Program to replace older heavy-duty engines with cleaner alternatives.

According to the governor’s office, the transportation investments are funded through Cap-and-Invest revenue and smog-abatement fees while maintaining a balanced state budget.

California continues to expand its zero-emission transportation network. The state surpassed 2.5 million cumulative zero-emission vehicle sales earlier this year, exceeding its original goal of 1.5 million sales by 2025. Officials also reported that California has more than 200,000 public and shared electric vehicle charging plugs statewide, in addition to an estimated 800,000 home charging stations.

Continue Reading

Business

Surveillance Pricing Fight: State Senate Debates Bill Banning Retailers from Using AI to Set Prices Based on a Buyer’s Profile

OAKLAND POST — Currently, there is no precise public data quantifying how many Black residents in California are actively affected by surveillance pricing. However, because the practice leans heavily on ZIP codes and localized demographic tracking, algorithmic pricing models frequently result in higher costs for Black and non-white communities compared to others, according to the Electronic Frontier Foundation (EFF), a leading nonprofit organization defending civil liberties in the digital space

Published

on

iStock.

Surveillance pricing—the algorithmic practice of using personal data to determine individualized costs for goods and services—is widespread in California, according to Assemblymember Chris Ward (D-San Diego). He warns that this system is actively impacting consumers across the state, and Black Californians could be specifically targeted.

Ward’s Assembly Bill (AB) 2564, the Surveillance Pricing Act, aims to prohibit businesses from using this practice. 

“Surveillance pricing is a growing phenomenon that a lot of people don’t realize is already happening,” Ward told California Black Media (CBM) at the State Capitol on June 29.

On June 22, the bill passed out of the Senate Privacy, Digital Technologies, and Consumer Protection Committee with a 5-2 vote and was re-referred to the Committee on Judiciary for consideration. On May 27, the Assembly voted to advance AB 2564 with a 42-21 vote. 

Currently, there is no precise public data quantifying how many Black residents in California are actively affected by surveillance pricing. However, because the practice leans heavily on ZIP codes and localized demographic tracking, algorithmic pricing models frequently result in higher costs for Black and non-white communities compared to others, according to the Electronic Frontier Foundation (EFF), a leading nonprofit organization defending civil liberties in the digital space.

Justin Brookman, a public-interest lawyer, supports AB 2564. His organization is an official sponsor of the bill. He advocates on behalf of Consumer Reports.

“We found that people shopping for the exact same item at the exact same time, and the exact same store, were getting different prices. In some cases, up to 23% higher,” Brookman said. “So, one person looking at a jar of Skippy peanut butter, it was $2.99. Another person, same exact time, it was $3.69.”

AB 2564 is primarily opposed by a coalition of corporations and technology industry associations. They argue that the bill’s language is overly broad, outlaws common consumer-friendly discounts, and creates costly litigation risks for small businesses.

Chamber of Progress – a tech industry association that lobbies for public policies that expand digital commerce and technological advances – says that banning data-driven personalization would wipe away targeted digital coupons that families count on to prolong their budgets.

In a March 18 written letter to the Assembly Committee on Privacy and Consumer Protection, Robert Singleton, senior director of Policy and Public Affairs for California and the U.S. West at the Chamber of Progress, urged the body to oppose AB 2564.

“We share the legislature’s concern about affordability,” Singleton wrote. “The cost of living is the top issue facing American families, and we understand the impulse to ensure consumers are getting a fair deal. But this bill risks backfiring on the families it aims to help.

Assemblymember Lori Wilson (D-Suisun City) supported and voted for the bill in the Assembly on May 27, but she still has questions about a “litigation risk” that could be costly.  

“Every business or retailer that is spending their time battling courts is spending resources, which drives the cost up for everyone,” said Wilson, a member of the California Legislative Black Caucus (CLBC). 

Continue Reading

Business

Oakland Children’s Hospital Workers and Patients Rally for Pediatric Medical Care

OAKLAND POST — “Children who go through a bone marrow transplant are immunocompromised, meaning that their immune system has been wiped out,” and having to take public transport to San Francisco exposes patients to the risk of getting a dangerous infection, said Paola Portillo, a social worker.

Published

on

Staff and family members of patients at UCSF Benioff Children's Hospital Oakland in Oakland, Calif., hold signs during a rally on Thursday, July 9, 2026. Rally participants protested the relocation of specialized care clinics to the hospital's San Francisco campus. Photo by Kayla Chan/Bay City News.

Staff, patients’ families, and supporters held a rally recently at UCSF Benioff Children’s Hospital in Oakland to protest the hospital’s decision to relocate specialized treatment clinics to San Francisco.

Protesters said the move is creating barriers for patients to access care and raised concerns over whether the hospital was appropriately using funds partially designated for pediatric services.

In response, hospital officials say they are concentrating resources for highly specialized procedures so patients can receive the highest quality of care.

One of the speakers at the rally, Paola Portillo, a social worker, said the hospital started transferring the clinics a year ago when UCSF Health integrated with the Children’s Hospital Oakland, located at 747 52nd St. in North Oakland.

According to Portillo, patients who need bone marrow treatments and interventional radiology are forced to travel to UCSF Benioff Children’s Hospital in San Francisco, which can be dangerous, she said.

“Children who go through a bone marrow transplant are immunocompromised, meaning that their immune system has been wiped out,” and having to take public transport to San Francisco exposes patients to the risk of getting a dangerous infection, she said.

UCSF spokesperson Kristen Bole says the move improves the hospital’s quality of care, giving bone marrow treatment (BMT) as an example.

“Inpatient BMT is a highly complex service where patient volume, specialized infrastructure, faculty coverage and 24/7 support are essential,” she said in a statement. “Concentrating non-gene therapy inpatient BMT care at Mission Bay allows us to provide the safest and most sustainable model for patients and families.”

Hospital officials also emphasized that moving care was not a one-way street. Beginning this month, patients admitted for rehabilitative treatment have been directed to the children’s hospital in Oakland, Bole said.

Speakers at the rally also claimed UCSF has not been transparent about how it has allocated funding from 2020’s Measure C, a measure that created a half-percent sales tax that partially funded pediatric health care at the children’s hospital.

“The community fought so hard for Measure C because every child deserves access to lifesaving, pediatric, high-quality care right here in Oakland,” said Agnes Cho, a policy advisor speaking on behalf of Alameda County Supervisor Nikki Fortunato Bas. “The funding should go towards strengthening care for children right here in Oakland.”

Protesters also said UCSF’s $3.3 billion endowment has been misused. Last October, the University Professional & Technical Employees union published a report on the University of California’s spending, which highlighted projects such as the $4.3 billion UCSF Helen Diller Medical Center at Parnassus Heights.

“What I have a problem with is saying the kids from the East Bay have to go to San Francisco to get care, so that UC can build a fancy hospital for its richest patients in San Francisco,” said union President Dan Russell.

The UCSF spokesperson said UCSF has been investing in its Oakland campus, explaining that upgrades that are expected to be completed in 2030 at a cost of $1.6 billion.

“Oakland is central to our pediatric health system, and we are making the largest investment in the campus’ history,” the spokeswoman said. “We do not make investments of this scale in a campus, workforce or community we plan to leave behind.”

This article includes coverage from Bay City News Service and media releases.

Continue Reading

Subscribe to receive news and updates from the Oakland Post

* indicates required

CHECK OUT THE LATEST ISSUE OF THE OAKLAND POST

ADVERTISEMENT

WORK FROM HOME

Home-based business with potential monthly income of $10K+ per month. A proven training system and website provided to maximize business effectiveness. Perfect job to earn side and primary income. Contact Lynne for more details: Lynne4npusa@gmail.com 800-334-0540

Facebook

iStock.
Business1 hour ago

Starting This Summer, California Car Buyers Can Get an Instant $3500 Off the Cost of Electric Vehicles

iStock.
Business1 hour ago

Surveillance Pricing Fight: State Senate Debates Bill Banning Retailers from Using AI to Set Prices Based on a Buyer’s Profile

Staff and family members of patients at UCSF Benioff Children's Hospital Oakland in Oakland, Calif., hold signs during a rally on Thursday, July 9, 2026. Rally participants protested the relocation of specialized care clinics to the hospital's San Francisco campus. Photo by Kayla Chan/Bay City News.
Business4 hours ago

Oakland Children’s Hospital Workers and Patients Rally for Pediatric Medical Care

AI-generated illustration created by Open AI.
Black History4 hours ago

Opinion: When Politicians Start Sanitizing One Chapter of History, They’re Coming After The Whole Book

Assemblymember Lori D. Wilson (D-Suisun City). File photo.
Black History5 hours ago

Beyond Politics: California Legislators Across Party Lines Celebrate Lori Wilson at 50

Bernard ‘Bernie’ Black. Courtesy photo.
Commentary5 hours ago

NPRC to Meet with California Attorney General’s Office on to Urge Guardianship Reform

Pastor Michael Wallace of Mt. Zion Missionary Baptist Church (center) and David Kimball, president of the Oakland Stake of the LDS church listen to remarks before volunteers began their work. “We are grateful to partner with these organizations to help care for those in need in our community,” Kimball later told the assembled volunteers. Courtesy photo.
Business5 hours ago

Mount Zion MBC, Church of Jesus Christ of Latter-day Saints Partner to Bring 29,000 Meals to Alameda County

Enoch Shin, left, operator of an auto body shop on International Boulevard in Oakland, with City Councilmember Ken Houston, right, at the Oakland City Council meeting on Tuesday.
Business5 hours ago

Councilmember Houston Helps Deter Trend to Award Contracts to Suburban Companies

Rep. John Garamendi. Courtesy photo.
Community5 hours ago

Rep. Garamendi, House Democrats Demand Trump Administration Abandon Illegal Plans to Dismantle Civil Rights, Special Ed Offices

Left to right: Zac Unger, John Jones III, Charlene Wang, Janani Ramachandran, Noel Gallo, Mateo Ridge, Ken Houston and Jonathan ‘Fitness’ Jones. Photo by Carla Thomas.
Business5 hours ago

Council Gives Approval for $125 Million Oakland Coliseum Sale to AASEG

Vendors and guests at the fair on Wednesday. Photo by Jonathan Joes.
Business6 hours ago

Job Readiness, Housing Resources Among Services Provided at Coliseum Job Fair

iStock.
Commentary6 hours ago

Free Back-to-School Summer Family and Community Event Is Coming to Richmond

Community6 hours ago

New State Law Limits Student’s Cell Phone Use During School Hours

Featured2 days ago

Why Trade Show Success Depends On Standing Out (Not Just Showing Up)

From left to right: Jesse Arreguín, Gov. Gavin Newsom, Sharon Quirk Silva, Oakland Mayor Barbara Lee, and Janelle Chan. Photo courtesy Sarah Henry.
Business2 days ago

Gov. Gavin Newsom Signs Law Streamlining Affordable Housing Rules

Trending

Copyright ©2021 Post News Group, Inc. All Rights Reserved.