Marking a major capital infusion, M&F Bancorp Inc. will get $76 million from the U.S. Treasury that will help boost the bank’s lending efforts.
Calling itself the nation’s second-oldest African American-owned bank, the parent of M&F Bank stated the investment is expected to increase its capital to over $117 million.
The investment is vital as Black banks need to raise more capital but don’t have access to public markets like mainstream banks.
The money for the Durham, N.C.-based bank comes from the Treasury Department’s Emergency Capital Investment Program (ECIP). The U.S. Department of the Treasury will invest up to $9 billion in depository community development financial institutions (CDFIs) and minority depository institutions (MDIs).
Its goal is to offer small and minority-owned firms and consumers in low-income and underserved communities financial products.
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SOURCE: Black Enterprise, Jeffrey McKinney