Treasury awards $8.7 billion for lending in minority communities

Black homeownership’s stall during COVID-19 pandemic is the ‘epidemic after the epidemic’

Black Americans represent 13.4% of the U.S. population, yet Federal Reserve figures show they control just 4.3% of household wealth. More than half of Black household wealth is in the form of pension entitlements, which cannot be passed along to future generations. This inequity makes it harder for people living in predominantly Black communities to qualify for business loans and mortgages in ways that could help build their net worth.

The $8.7 billion will be going to institutions headquartered in 36 states, as well as Guam and Washington, D.C. Roughly 54% of the funds is going to banks and 46% to credit unions. The distributions will range from more than $200 million for the largest institutions to less than $100,000 for smaller ones.

“Here, it’s very easy to connect the policy with the personal,” Yellen said. “What this will do is prevent small business owners of color from closing two of their locations. And better yet, it will help people open two more.” 

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