Five-Year Plan Will Support Underserved Communities Through New Funding, Lending Products, Investments and Programs
FOR IMMEDIATE RELEASE
Rise Economy Contact: Brian M. Maxey
bmaxey@rise-economy.org
510.813.7552
CBC Contact: Nicole Inal Hutchinson
nicole@parcon.com
949.521.3212
IRVINE, CALIF. – (October 8, 2024) – Commercial Bank of California (CBC), a privately held community business bank, announces today an expansion in its community support programs across the state of California. The bank has partnered with Rise Economy, a nonprofit that drives economic justice for underserved communities, to develop a five-year Community Benefit Agreement (CBA). This plan will deploy additional funding, open up lending opportunities, expand financial support programs to communities and businesses in need, and grow upon the goals of the Community Reinvestment Act (CRA).
“For the last 20 years, we have been dedicated to meeting the banking and financial needs of our communities,” said Ash Patel, chairman, president and CEO of Commercial Bank of California. “This is an exciting opportunity for us to do more for the people who need it most – to help their businesses and their families thrive.”
CBC is a Minority Depository Institution (MDI), that is both minority-owned and managed. This designation indicates that the bank has a unique skill set and perspective to serve minority communities with specialized services, such as this CBA. The program will launch in the first quarter of 2025. Key commitments in CBC’s plan include:
- Growing community development investments and multiplying contributions by 1.25 through 2026, and by 1.5 times from 2027 through 2029.
- Expanding CRA-related lending efforts, including mortgage and SBA lending
- Increasing SBA lending to ensure that 50 percent of small-business loans will be directed to businesses with less than $250,000 in annual revenue, and that 50 percent of those loans will be under $100,000.
- Launching a Special Purpose Credit Program to support small businesses owned by Black, Indigenous and people of Color (BIPOC).
- Increasing community development investment efforts by prioritizing investments in Community Development Financial Institutions (CDFIs), Community Land Trusts and Native Land Areas.
- Depositing up to $750,000 in the emerging Public Bank East Bay, a new community bank focused in local and green energy investments.
- Refraining from all loans and investments in fossil fuel companies or extraction projects.
- Expanding the Bay Area Green Fund in partnership with Community Bank of the Bay.
- Opening a new bank branch in a low-to-moderate- income community of color.
- Lowering bank fees across all branches in California.
- Committing to protect existing bank jobs.
- Agreeing to sign Rise Economy’s Anti-Displacement Code of Conduct.
“Creating strong and resilient communities is central to our mission at Rise Economy, and the Commercial Bank of California Community Benefit Agreement not only maintains but actively enhances the economic well-being of BIPOC, low-income and historically neglected neighborhoods,” said Rise Economy CEO Paulina Gonzalez-Brito. “By committing to increased investments in small businesses, affordable housing and by pledging support of public banking initiatives, CBC is taking significant steps to ensure these communities have the financial resources to thrive.”
Commercial Bank of California has long supported the diverse communities across California. Most recently, during the COVID Pandemic, the bank saved more than 500,000 jobs nationwide with guaranteed loans from the Paycheck Protection Program. CBC has also partnered with 12 community organizations, schools and nonprofits to launch Financial Literacy Programs to teach young adults and families the fundamentals of business and personal financial management.
“Our purposeful approach to banking is rooted in aligning our goals with the goals of our clients, and this new partnership with Rise Economy will help us expand that commitment,” said Patel. “As a privately held bank, we have built profitability through stability – and the result is to reinvest that profit to empower more people.”
Earlier this year, Commercial Bank of California agreed to merge with Oakland-based Community Bank of the Bay (CBB), and is nearing completion of the transaction. This Community Benefit Agreement will extend to the Northern California communities that CBB serves as well, benefiting thousands of people across the state.
“We commend CBC for promoting collaboration between public and community banks to fund our communities for the greater good,” said Gonzalez-Brito. “We look forward to seeing the tangible benefits this agreement will bring to communities across California.”
Rise Economy is focused on creating a more equitable society where BIPOC have access to resources and opportunities to build generational wealth. The organization achieves this by driving empowerment of underserved communities, advocating for policies and practices that promote equity, and collaborating with groups and companies to create lasting change.
Read the full CBA
About Rise Economy
Rise Economy, formerly the California Reinvestment Coalition (CRC), is a member-led alliance focused on creating a more equitable society where Black, Indigenous, and People of Color have access to resources and opportunities to build generational wealth. As the largest statewide community reinvestment alliance in the country, Rise Economy advocates for policies and practices that promote racial and economic justice and that address the root causes of inequality, redlining, and systemic racism. For more information, please visit http://www.rise-economy.org/.
About Commercial Bank of California
Commercial Bank of California is a full-service bank and diversified financial services company serving the business and professional communities of Los Angeles and Orange counties. Recognized as a BauerFinancial, Inc. “Four-Star Excellent Bank” for its financial strength and stability, CBC provides the financial expertise of a major bank while maintaining a commitment to personalized service for every CBC client. CBC is heavily focused on community reinvestment and has been named one of So Cal’s Best Places to Work in 2022 and 2023. For more information, please visit www.cbcal.com.
This report includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein may constitute forward-looking statements. Although Commercial Bank of California believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Important factors that could cause actual results to differ materially from Commercial Bank of California’s expectations include fluctuations in interest rates, inflation, government regulations, and economic conditions and competition in the geographic and business areas in which Commercial Bank of California conducts its operations.
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