CHICAGO (CBS) — Chicago is investing $20 million in the city’s only remaining black-owned bank.
Calling it the first step in addressing Chicago’s problem with violence and history of segregation, City Treasurer Kurt Summers announced the $20 million deposit on the main branch of Illinois Service Federal and Loan Association (ISF). The African American-owned financial institution been serving the black communities of the South Side of Chicago since 1934.
Summers says investing city money will help African American businesses owners, who only get their full loan request 47 percent of the time, compared to the 76 percent of their white counterparts.
“The community banks are often more capable of evaluating the risks of local borrowers than large remote financial institutions.”
Several other politicians say such an investment will help fight the economic disparity in Chicago and resulting violence. Ald. Roderick Sawyer, for example, says the investment will pay dividends in areas such as Bronzeville, as well as those beyond.
As Chicago’s banker, investor and advocate, Treasurer Summers says he is taking action by supporting institutions focused on economic development in the areas of the city that most need it.