FDIC starts banking access initiative for women-, minority-owned firms

Diversity and inclusion have been hot topics in banking circles recently, and now the Federal Deposit Insurance Corp., which can help influence lending practices at more than 5,200 banks across the nation, is offering a new initiative to spur lending to minority businesses.

Last week, the Winthrop Rockefeller Foundation announced that minority-business owners in Arkansas continue to be shut out of access to federal funding that would help them survive the pandemic.

The foundation said that nearly $658 million in Small Business Administration loans went to Arkansas from 2017-2020. However, only 2% of those loans went to small businesses owned by American Indians, Blacks and Hispanics — groups that make up about 13% of small businesses in the state.

Women-owned businesses suffer as well. The Women’s Foundation of Arkansas recently noted that women of color find it difficult to open and sustain small businesses.

“Many of the resources that Arkansas offers to entrepreneurs aren’t reaching women of color business owners,” said Women’s Foundation of Arkansas Executive Director Anna Beth Gorman. “Women of color business owners have basically had to figure it out on their own because of systemic barriers.”

Access to capital and support from traditional lenders has been a historic problem for minority business owners. They don’t have longstanding relationships with banks and other financial institutions.

That creates problems even accessing forgivable loans like those offered under the Paycheck Protection Program. Federal rules mandate that PPP loan applications can only be submitted by approved lenders — individuals are not permitted to apply on their own.

Now, the FDIC says it will accelerate efforts to promote diversity and inclusion through lending practices at its member institutions.

The government-run agency supports more than 5,200 financial institutions by providing deposit insurance for customers of those banks.

FDIC Chairman Jelena McWilliams announced last week that opening greater access to capital will be a major part of the agency’s new strategic plan to advance diversity, equity and inclusion efforts.

The agency will “assess diversity policies and practices at financial institutions

and provide additional support for minority depository institutions.”

A key initiative will “implement a series of technical assistance events to educate and equip minority- and women-owned businesses with the tools they need to complete for contracts,” the agency said.

In addition, the agency will host business pitch events, giving minority businesses more opportunities to get in front of traditional lenders and promote their value and growth opportunity to bankers.

The FDIC says it will review its policies and regulations to determine what changes are necessary to promote equity and highlight loan opportunities in minority communities.

PROMOTING RURAL LIFE

Arkansas Farm Bureau is partnering with Arkansas PBS to produce community programming and local projects to support agricultural and rural community life.

“Good Roots” programming will promote education, health awareness and agricultural initiatives through funding provided by the Farm Bureau.

The monthly series will demonstrate how modern advances are improving rural life and agribusiness in the state. Good Roots will premiere April 16 on Arkansas PBS.

Starting in May, the segment will air on the second Friday of each month. Segments and bonus materials also will be available on digital platforms promoted by PBS, including myarpbs.org.

“Arkansas Farm Bureau is dedicated to sharing the critical role agriculture plays in our lives and economy,” President Rich Hillman said. “Arkansas is built on the foundation of farming, and that story is much more complicated than what is often portrayed.”

PLUGGING IN

Entergy Corp. has formed an alliance with five other electric utilities to provide access to a network of charging stations for electric vehicles.

The network connects major highway systems from the Atlantic Coast through the Midwest and South, and into the Gulf Coast and Central Plains regions.

Electric vehicles are projected to become prevalent on U.S. highways in coming years. Global consulting firm Frost & Sullivan estimates the U.S. electric vehicle market will reach 6.9 million unit sales by 2025, up from 1.4 million forecast for 2020.

Traditional automakers are moving to commit to the market. Last week, Volvo Cars said it would convert its entire lineup to battery power by 2030 and stop making and selling cars with internal combustion engines.

Entergy is joining American Electric Power, Dominion Energy, Duke Energy, Southern Co. and the Tennessee Valley Authority in the coalition. The goal is to provide electric vehicle drivers with a seamless network of charging stations in the utilities’ service areas.

“At Entergy, we are taking an integrated approach toward a carbon-free future that includes working with industry peers and customers to electrify other sectors of the economy like transportation and the maritime industry,” said Leo Denault, chairman and chief executive officer of Entergy Corp., parent company of Entergy Arkansas, the state’s largest electric utility.

STORM AID

Small businesses in seven Central Arkansas counties have until March 17 to apply for federal disaster loans to repair economic damage from a severe storm that blew through the area last April.

Nonfarm businesses, agricultural cooperatives and other small businesses engaged in aquaculture and most private nonprofit organizations of any size may apply for Economic Injury Disaster Loans of up to $2 million to help meet working capital needs caused by the disaster. Loans are provided through the U.S. Small Business Administration.

The severe storms included straight-line winds that were centered in Jefferson County on April 20. Low-interest federal disaster loans are available in Arkansas, Cleveland, Grant, Jefferson, Lincoln, Lonoke and Pulaski counties.

“Economic Injury Disaster Loans may be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disaster’s impact,” said Tanya N. Garfield, director of SBA’s disaster field operations. “Economic injury assistance is available regardless of whether the applicant suffered any property damage.”

Interest rates are 3.75% for businesses and 2.75% for private nonprofit organizations with terms up to 30 years. More information is available at https:// disasterloanassistance.sba.gov/.

NEW OWNERS

Austin Brothers Tire and Service in Little Rock has been purchased by Nathan and Miranda Crawford. Nathan Crawford has served as manager of Austin Brothers since June 2016.

The auto service business, located at 2801 Cantrell Road, has operated as a family-owned company since 1974 and the Crawfords become the third family to run the operation.

The company plans to remain focused on the tire-service business.