The company is depositing cash reserves into
Broadway Federal Bank, Carver Federal Savings Bank and Citizens
Trust Bank
Yelp Inc. (NYSE:YELP), the company that connects people with
great local businesses, today announced it has deposited $10
million of its cash reserves with minority-owned financial
institutions that support Black and underserved communities,
including Broadway Federal Bank (Broadway), Carver Federal Savings
Bank1 (Carver) and Citizens Savings Bank and Trust Company
(Citizens Savings Bank).
According to The Wall Street Journal, fifteen years ago America
had 36 Black-owned banks,2 and today the FDIC reports only 20.3
Yelp selected Broadway, Carver and Citizens Savings Bank because of
their immense impact on their respective communities – from New
York City to Los Angeles to Nashville and Memphis. Each of the
banks are certified Community Development Financial Institutions
(CDFI). The CDFI Certification is a designation given by the CDFI
Fund to specialized organizations that provide financial services
in low-income communities and to people who lack access to
financing.4
"We recognize that the distribution of financial capital is not
equitable in the United States, particularly in Black communities,
and know we have a role to play to support a more equitable
financial system," said David Schwarzbach, chief financial officer
at Yelp. "We're committed to making financial capital available to
low- and moderate-income communities and to Black business owners
who have been hit particularly hard by the pandemic. This is why
we're depositing $10 million of Yelp’s cash reserves into these
three Black-owned financial institutions to support home ownership
and local businesses across the communities they serve."
Providing banking and financial resources to minority-owned
businesses in low- to moderate-income communities in New York City
and beyond
For over 72 years, Carver’s mission has been to provide
customers with access to a full range of competitively priced
banking solutions regardless of their income level. Carver
continues to deliver on this mission today by providing access to
reasonably priced loan capital and financial education to aspiring
Minority- and Women-Owned Business Enterprises (MWBEs) and retail
customers across the New York Metropolitan region. The bank
demonstrated this commitment by making 74% of its loans to low- to
moderate-income communities. Today, Yelp is proud to make a
long-term deposit of $2.5 million into Carver, intending to advance
the bank’s mission of supporting MWBEs and empowering low- to
moderate-income communities.
Institutions like Carver are needed now more than ever.
According to the Stanford Institute for Economic Policy Research,
only one percent of Black business owners obtain business loans in
their founding year, compared with seven percent for white-owned
firms.5 Black-owned businesses are struggling disproportionately
because of the economic challenges created by the pandemic.
According to the National Community Reinvestment Coalition, Black
borrowers faced significant discrimination when applying for the
COVID-19 relief Paycheck Protection Program (PPP).6
Throughout the pandemic, Carver has preserved more than 3,500
jobs and provided approximately $35 million in access to capital
for small businesses through the PPP. For example, Carver helped
BK9, a Park Slope, Brooklyn NY, Caribbean restaurant, with critical
funding. The funding provided vital financial resources that
enabled the restaurant to continue to operate and pivot during the
pandemic with takeout, delivery, and outdoor dining. BK9 was able
to retain its 33 employees and add an employee during the health
crisis with this capital. Carver was also able to approve a PPP
loan to Getting Out and Staying Out, an East Harlem based
non-profit focused on reducing reincarceration with young men
through educational achievement, meaningful employment, financial
independence, and emotional well-being. The loan allowed the
organization to remain open during the pandemic, saving 36 jobs,
and to carry on its essential work, which connected more than 40 of
their participants to jobs during the height of the pandemic.
“As a certified minority depository institution, Carver
maximizes our impact in the diverse communities we operate in by
growing our deposit base,” said Jim Montes, president of Carver
Community Development Corporation. “Today’s announcement by Yelp to
establish a partnership with Carver by making a long-term deposit
of $2.5 million will help us to accelerate our mission of serving
low- to moderate-income communities. Here at Carver, we are
extremely proud that approximately $0.80 of each deposit dollar we
receive is reinvested back into the diverse communities we operate
in through competitively priced loans. On behalf of Carver and
other community banks across the country making a difference, we
applaud Yelp for putting its banking dollars to work!”
Supporting affordable housing to low- and moderate-income
communities in Southern California
Through a $5 million cash deposit at Broadway, Yelp is helping
the bank address the critical need of affordable housing for low-
to moderate-income communities, with a particular focus on
multi-family housing lending within Los Angeles communities.
The bank supports and partners with many organizations in the
public and private sector that serve the most vulnerable
individuals and families within the Los Angeles area. They partner
with the city of Los Angeles to decrease the number of unbanked
residents in the city by encouraging the addition of more banking
locations in underserved communities, as well as working with banks
to offer “second chance” or “no fee” checking accounts. Through the
VITA program, Broadway Bank offers free tax help to low- and
moderate-income individuals, persons with disabilities, the elderly
and limited English speaking taxpayers who need assistance in
preparing their own tax returns. Broadway Bank also partners with
the Inner City Law Center, Community Build, Para Los Ninos and the
South Central Los Angeles Regional Center, among other
organizations.
“This deposit by Yelp is an independent affirmation of Broadway
Federal Bank’s strong financial condition during a difficult
economic environment,” said Wayne Bradshaw, CEO of Broadway.
“Furthermore, it demonstrates Yelp’s confidence in Broadway’s
ability to effectively originate loans that support Broadway’s
mission of serving low- to moderate-income communities in Southern
California, many of which have been disproportionately impacted by
the COVID-19 Pandemic.”
Promoting economic growth and stability in Nashville and
Memphis underserved communities
Founded in 1904, Citizens Savings Bank provides financial
opportunities for low- to moderate-income and minority groups,
promoting economic growth and stability in Nashville and Memphis,
TN. In 2020, the bank funded over $1 million in loans to small
businesses in their community. For example, the bank recently
provided small business financing to one of its long-standing
clients, Alpha Pest Control, during the pandemic. Established in
1952, Alpha Pest Control, previously known as William's Pest
Control, is a fourth generation Black-owned small business and
Citizens Bank’s support led this remarkable entity to remain a
family-owned and operated small business.
One of Citizens Trust’s core pillars is financial literacy.
Prior to the pandemic, in partnership with Hull Jackson Montessori
School, the bank would meet with students to emphasize the
importance of savings, good credit, financial planning, and
maintaining a sound banking relationship. Yelp is depositing $2.5
million into Citizens Savings Bank to further their mission of
supporting small businesses and providing critical financial
literacy in Nashville and Memphis, TN.
“Citizens Savings Bank greatly appreciates its highly valuable
and beneficial partnership with Yelp,” said Sergio Ora, president
and CEO of Citizens Savings Bank & Trust Company. “As the
oldest continuously owned and operated African-American Bank in the
United States, and as a CDFI, Citizens Savings Bank is very focused
on establishing collaborative partnerships with organizations that
are aligned with our long-standing commitment to provide superior
financial services and financial education to the African-American
community, as well as other underserved minority groups. Our Yelp
partnership supports and enhances Citizens Savings Bank & Trust
Company’s consumer, small businesses, residential mortgages, and
faith-based lending initiatives.”
Yelp’s Commitment to Support the Black Community
This initiative is part of Yelp's overall commitment (announced
June 2020) to support the Black community and Black-owned
businesses, and to bring about changes within the company in
support of its Black employees. Since the tragic murder of George
Floyd and the social unrest that followed, Yelp has continued make
progress on it’s commitment. Today, the company released its
Diversity Report, highlighting a 13.6% increase in underrepresented
minority employees at Yelp and a 12.9% increase among managers. The
company also introduced mandatory company-wide training on systemic
racism and institutional bias and added Juneteenth as an annual
paid holiday for 2021. Earlier this summer, Yelp Foundation and
company employees rallied together to donate $1.5 million to
Black-led and Black-serving organizations. To support Black-owned
businesses, Yelp introduced a Black-owned attribute in partnership
with MyBlackReceipt, and joined the 15% pledge.
The company plans to continue to make progress on its commitment
to support Black and minority communities, both inside and outside
of Yelp.
About Yelp Inc.
Yelp Inc. (www.yelp.com) connects people with great local
businesses. With unmatched local business information, photos and
review content, Yelp provides a one-stop local platform for
consumers to discover, connect and transact with local businesses
of all sizes by making it easy to request a quote, join a waitlist,
and make a reservation, appointment or purchase. Yelp was founded
in San Francisco in July 2004. Since then, Yelp has taken root in
major metros in more than 30 countries.
1 Carver Federal Savings Bank is a wholly-owned subsidiary of
Carver Bancorp, Inc. (Nasdaq: CARV). 2
https://www.wsj.com/articles/the-battle-to-keep-americas-black-banks-alive-11604725200
3 https://www.fdic.gov/regulations/resources/minority/mdi.html 4
https://www.cdfifund.gov/programs-training/certification/cdfi/Pages/default.aspx
5
https://siepr.stanford.edu/sites/default/files/publications/17-003.pdf
6
https://ncrc.org/despite-gaping-holes-in-government-data-tests-show-ppp-borrowers-faced-discrimination/
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version on businesswire.com: https://www.businesswire.com/news/home/20201215005131/en/
Yelp Inc. Julianne Rowe press@yelp.com
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