M&F Bancorp to Receive $76 Million from U.S. Treasury to Boost Its Lending Efforts

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