U.S. Bank Access Commitment is a series of
initiatives across the business to increase wealth building
opportunities, starting with the Black community
Commitment includes $25 million
microbusiness fund for women of color business owners
U.S. Bank announced today details of its U.S. Bank Access
Commitment, a long-term approach bringing the strengths of U.S.
Bancorp Community Development Corporation (USBCDC), corporate
social responsibility and its business lines, to help build wealth
while redefining how the bank serves diverse communities and
provides more opportunities for diverse employees.
Access Commitment will focus on three primary areas: supporting
businesses owned by people of color, helping individuals and
communities of color advance economically and enhancing career
opportunities for employees and prospective employees. The ongoing
work – which will include projects from across U.S. Bank’s diverse
portfolio of businesses – builds on the $116 million commitment
made by U.S. Bank in 2020 including increased supplier spend,
innovative products, services and transformative customer
experiences and long-term place-based partnerships with the goal of
addressing the persistent racial wealth gap, starting with the
Black community.
This initial launch includes:
- A new $25 million microbusiness fund focused on businesses
owned by women of color
- A mortgage program focused on homeownership education and
hiring
- A focus on building sustained wealth as part of U.S. Bank’s
wealth management business
- Financial inclusion partnerships
- Supply chain financing focused on diverse businesses
- Customized employee leadership development
- A change to how U.S. Bank fills open positions within the
organization
“We believe access to capital for minority small business,
housing and homeownership and workforce advancement creates
opportunities for systemic change,” said Andy Cecere, Chairman,
President and CEO of U.S. Bank. “U.S. Bank Access Commitment is our
approach to building wealth and supporting individuals and small
business owners through a series of business initiatives throughout
2021 and beyond. We are committed to be part of the solution.”
Supporting businesses owned by people of color
$25 million microbusiness fund The U.S. Bank Foundation and
USBCDC will provide $25 million in grants and investments through a
new microbusiness fund for businesses owned by women of color. The
fund is focused on providing access to capital, technical
assistance and networking. USBCDC will provide $20 million in debt
capital to Black-led and women-focused community development
financial institutions (CDFIs). U.S. Bank Foundation will provide
$5 million in grants to support expansion, capacity building,
technical assistance and mentorship/networking. More on the fund,
including selected partners will be shared in the coming weeks.
Expanding finance opportunities for diverse businesses U.S.
Bank’s Global Trade and Supply Chain Finance teams will expand
existing efforts to provide trade financing to more diverse
businesses, with a focus on supply chain finance. The team will
work with U.S. Bank corporate and commercial banking customers to
optimize working capital for diverse-owned businesses. It will do
this by providing bilateral access to U.S. Bank’s receivables
purchase program so they can provide competitive payment terms to
their buyers but be paid earlier than the due date. This will help
free up much needed capital by improving cash flow and enhancing
their sales effort.
Expanding USBCDC’s ongoing commitment to racial equity USBCDC
continues to look across its business for ways to deepen
relationships with partners that are Black-owned, Black-led or are
prioritizing racial equity in their work. For example, it’s
prioritizing patient and lower-cost capital to Black-led CDFIs
through a partnership with the African American Alliance of CDFI
CEOs; removing barriers and providing stronger support to Black-led
affordable housing developers; and using an intermediary community
development entity (CDE) model to create opportunities for
Black-led CDFIs and CDEs to earn revenue, build experience and
receive their own New Markets Tax Credit allocation.
Doing business with diverse businesses In 2020, U.S. Bank
committed to doubling its Black-owned suppliers within the next 12
months. U.S. Bank is making great progress and is on track to
achieving this goal. Examples of areas of progress includes new
engagements in real estate appraisals, digital, technology, and
construction.
In the Fall of 2019, U.S. Bank joined the Department of
Treasury’s Mentor/Protégé program to provide vital support to
Minority Deposit Institutions (MDIs). Since then, U.S. Bank has
been providing developmental assistance and engaged in revenue
generating opportunities with First Independence Bank, a
Black-owned bank headquartered in Detroit, Michigan.
Helping individuals and communities of color advance
financially
Homeownership U.S. Bank is introducing its DREAM (Delivering
Resources that Enable Access to Mortgage) Initiative, focused on
advancing Black homeownership and increasing Black representation
in the mortgage industry for individuals and families across our
national footprint through strategic outreach and engagement with
local community partners. The initiative includes enhanced adult
financial education, youth outreach, and a mortgage loan officer
development program focused on attracting underrepresented
communities to mortgage as a viable career choice. U.S. Bank DREAM
Initiative is set to launch in late summer.
Financial inclusion Through our technology and operations
business, U.S. Bank made an equity investment in Goalsetter, a
Black-owned kids and family finance app that provides a
next-generation, education-first banking experience for U.S. kids
and teens, focused on financial literacy. U.S. Bank was one of the
first corporations to provide investment into the app. U.S. Bank is
working on opportunities to use Goalsetter in its everyday business
offerings including, incorporating the app into its financial
education experiences for customers and in its scholarship
program.
During 2020, U.S. Bank
launched financial wellness coach programs in Aurora, Colorado, and
in the Pullman neighborhood of Chicago in partnership with
Operation HOPE. The goal is to increase credit scores, savings and
confidence, with an emphasis on serving people of color and
underbanked individuals. Additionally, U.S. Bank will soon begin a
new financial wellness pilot in Columbus, Ohio, offering financial
education classes to high school students.
Building Black wealth U.S. Bank recently conducted a survey* of
approximately 4,600 people to better understand the wealth
management needs of various populations (Black, Asian, Hispanic and
Caucasian). Early findings of this survey found that the majority
of Black respondents felt their community was at a disadvantage
compared to the general population when it comes to wealth
accumulation. U.S. Bank will unveil full results of the survey over
the next several weeks, with findings used to help inform a broader
initiative to build wealth in communities of color. Listening and
learning are key drivers in determining U.S. Bank’s Building Black
Wealth next steps.
Enhancing career opportunities for our employees
Advancing Black leaders U.S. Bank is committed to creating an
inclusive culture where all employees are valued, empowered and
given equitable access to opportunities to build and advance their
careers. The company offers leadership development for all
employees and will expand opportunities for both early- and
mid-career employees and Black executives in partnership with the
McKinsey Black Leadership Academy. To date more than 150 executives
are participating in the program. U.S. Bank is also preparing to
launch a second year of its Managing Committee Sponsorship Program,
which pairs executive leaders with women, Black and Hispanic
leaders to increase visibility and accelerate their
advancement.
Ensuring diverse candidate slates U.S. Bank recently expanded
its diversity hiring efforts to include at least one woman or
person of color in the interview process for all employment
opportunities. Previous efforts had applied to manager level roles
and above. The bank has also committed to expanding the use of
diverse interview panels and is revising partnerships for sourcing
diverse candidates.
“Launching U.S. Bank Access Commitment is an important next step
in our focus on addressing the racial wealth gap, which suppresses
opportunity for all Americans, and creating opportunities for all
stakeholders to realize their full economic potential ,” said Greg
Cunningham, chief diversity officer for U.S. Bank. “Our focus on
developing the products, services and experiences that readily
meets the financial needs of our diverse communities will
ultimately help create more equitable outcomes for everyone.”
More information at
usbank.com/diversity.
* The survey was conducted by
C+R Research. Majority of the survey respondents have more than
$100,000 in investable assets while a quarter had $25,000-$99,900
in investable assets. Survey respondents also included emerging
affluent investors. This sample included 21-40 year-old individuals
with a college degree and between $55,000-$90,000 in
income.
About U.S. Bank
U.S. Bancorp, with nearly 70,000 employees and $554 billion in
assets as of December 31, 2020, is the parent company of U.S. Bank
National Association, the fifth-largest commercial bank in the
United States. The Minneapolis-based bank blends its relationship
teams, branches and ATM network with digital tools that allow
customers to bank when, where and how they prefer. U.S. Bank is
committed to serving its millions of retail, business, wealth
management, payment, commercial, corporate, and investment
customers across the country and around the world as a trusted and
responsible financial partner. This commitment continues to earn a
spot on the Ethisphere Institute’s World’s Most Ethical Companies
list and puts U.S. Bank in the top 5% of global companies assessed
on the CDP A List for climate change action. Visit usbank.com for
more.
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Susan Beatty U.S. Bank susan.beatty@usbank.com
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