U.S. Bank expands lending opportunities for women-, minority-, and veteran-owned businesses
April 28 2023 - 11:00AM
Business Wire
U.S. Bank is introducing a new Business Diversity Lending
Program that will expand the ability of diverse business owners to
obtain capital, building upon the bank’s broader efforts to support
under-represented businesses and help address the wealth gap.
Through the Business Diversity Lending Program, U.S. Bank will
provide credit and financing to help women-, minority-, and
veteran-owned businesses grow and thrive. The program is based on
traditional loans and lines of credit at U.S. Bank, allowing for
modified credit guidelines that enable more business owners to
access the funding they need to run their business.
The U.S. Bank Business Diversity Lending Program is a type of
special purpose credit program, or SPCP, permitted by the Equal
Credit Opportunity Act (ECOA). These programs are specifically
designed to improve access to capital for members of economically
disadvantaged classes.
U.S. Bank is launching the Business Diversity Lending Program
following last year’s acquisition of MUFG Union Bank. Union Bank
was a pioneer in implementing an SPCP for small business, launching
their Business Diversity Lending Program around 30 years ago. U.S.
Bank is continuing this legacy, with expanded impact across the
U.S. Bank footprint.
“The Business Diversity Lending Program is the latest commitment
by U.S. Bank to power the potential of all of our customers and
help close the wealth gap,” said Sekou Kaalund, Head of Branch and
Small Business Banking at U.S. Bank. “Small businesses are the
bedrock of the U.S. Economy, and by broadening access to capital we
are helping to fuel more business owners’ dreams and drive economic
growth. By building stronger women-, minority-, and veteran-owned
businesses we are creating more vibrant communities for
everyone.”
The Business Diversity Lending Program aligns with U.S. Bank
Access Commitment™, a long-term approach focused on helping
communities of color build wealth. The commitment is comprised of
multiple initiatives, including a $25 million microbusiness fund
focused on businesses owned by women of color, a mortgage program
focused on homeownership education and the creation of a Business
Access Advisor role that works with minority-owned businesses with
a focus on addressing the three most prominent gaps that limit
business growth and employment opportunities: information,
connections, and capital.
With the Business Diversity Lending Program, U.S. Bank is
expanding opportunity for a vital portion of the business
community. About 1.24 million or 21.4% of businesses with paid
employees in 2020 were women-owned, according to the latest U.S.
Census data. In addition, 1.15 million or 19.9% were
minority-owned, and 320,864 or 5.6% were veteran-owned.
Under the U.S. Bank program, eligible businesses may qualify for
reduced credit score and decreased cash flow coverage requirements
on most conventional lending products up to $2.5 million.
Businesses are eligible if they are at least 51% owned and operated
by one or more individuals who self-identify as a woman, minority,
and/or veteran.
To learn more about the program, visit the U.S. Bank Business
Diversity Lending program webpage.
About U.S. Bancorp
U.S. Bancorp, with approximately 77,000 employees and $682
billion in assets as of March 31, 2023, is the parent company of
U.S. Bank National Association. The Minneapolis-based company
serves millions of customers locally, nationally and globally
through a diversified mix of businesses: Consumer and Business
Banking; Payment Services; Corporate & Commercial Banking; and
Wealth Management and Investment Services. Union Bank, consisting
primarily of retail banking branches on the West Coast, joined U.S.
Bancorp in 2022. U.S. Bancorp has been recognized for its approach
to digital innovation, social responsibility, and customer service,
including being named one of the 2023 World’s Most Ethical
Companies. Learn more at usbank.com/about.
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version on businesswire.com: https://www.businesswire.com/news/home/20230426005699/en/
Rick Rothacker, U.S. Bank Public Affairs & Communications
richard.rothacker@usbank.com
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