ACT Deposit Program Achieves Milestone of $100 Million Funding

ACT Deposit Program Achieves Significant Milestone

The Community Development Bankers Association (CDBA) along with the National Bankers Association (NBA) has proudly announced that the Advancing Communities Together (ACT) Deposit Program has reached a remarkable funding milestone of $100 million. This innovative program, initiated in mid-2024, aims to support banks that serve low-income and minority communities, ensuring that all deposits made are eligible for FDIC insurance at network banks.

Impact on Local Communities

This significant funding milestone showcases the program's positive influence on communities nationwide. The ACT Deposit Program channels essential financial resources to banks dedicated to fostering economic growth, particularly in areas traditionally underserved. Both organizations released their inaugural annual report, highlighting transformative impacts in various states.

Voices from Leadership

According to Todd O. McDonald, NBA's chairman and president of Liberty Bank and Trust, "The ACT Deposit Program empowers us to broaden access to capital for historically underserved individuals and small businesses, sparking essential economic revitalization where it's needed the most. Corporations are encouraged to engage in meaningful, community-focused investments."

Carlos Naudon, CDBA's chairman and CEO of Ponce Bank emphasized, "Deposits are crucial for mission-driven banks like ours. Many communities we seek to uplift lack sufficient funding. The ACT Deposit Program plays a vital role in addressing this gap, supporting affordable housing development and small business lending. This initiative is transformative for our communities."

Overview of Program Benefits

The ACT Deposit Program aims to streamline the deposit processes for large depositors looking to invest in community development financial institutions (CDFIs) and minority depository institutions (MDIs). Through this program, individuals and organizations can effectively place funds with over 80 participating institutions, ensuring that deposits extend their reach into the communities that require financial support the most.

Participants in the program can rename a chosen CDFI or MDI as their primary banking partner. Funds are then allocated, ensuring that benefits are shared across all banks involved in the program, with the added assurance that all deposits qualify for FDIC insurance.

Collaboration with IntraFi

The dependable framework of the ACT Deposit Program is powered by IntraFi and its ICS (Insured Cash Sweep) service, which enables thousands of banks across the nation to offer a unique service. This service provides depositors access to millions in FDIC insurance aggregate across the banks within the IntraFi network.

Learn More about the ACT Deposit Program

For individuals or organizations interested in understanding more about the ACT Deposit Program and exploring the list of participating banks, further information can be found on the official program channels. This initiative represents a crucial effort in fostering economic growth and financial stability in underserved regions.

About the Community Development Bankers Association (CDBA)

With a rich history spanning over two decades, the CDBA has been at the forefront of advocating for financial inclusivity, racial equity, and economic opportunities within economically vulnerable communities. The association is dedicated to making banking a force for good and continues to promote sustainable economic growth through its initiatives.

About the National Bankers Association (NBA)

Founded in 1927, the NBA is dedicated to empowering minority depository institutions. Its mission revolves around advocating for the needs of banks that deliver services to low- to moderate-income communities. Representing a vast network of community banks, the NBA amplifies efforts towards financial empowerment and access to capital.

Frequently Asked Questions

What is the ACT Deposit Program?

The ACT Deposit Program is an initiative aiming to support community banks that serve low-income and minority communities by providing essential funding and resources.

How much funding has the ACT Deposit Program achieved?

The program has reached an impressive funding milestone of $100 million, showcasing its significant impact.

Who supports the ACT Deposit Program?

The ACT Deposit Program receives broad support from various financial institutions and aims to enhance funding access for underserved communities.

What are the benefits of the program?

Participants can deposit funds with a range of CDFIs and MDIs, ensuring their investments reach communities in need while being eligible for FDIC insurance.

How can I learn more about participating banks?

Individuals interested in the program can find detailed information and a list of participating banks via the ACT Deposit Program's official resources.

About The Author

Hi there I'm 38-year-old author and financial consultant Owen Jenkins. Having worked in the financial sector for more than ten years, I am well-versed in the subtleties and complexity that mold our financial environment. Following a degree in finance, I worked in a number of financial institutions honing my abilities in market analysis, financial planning, and investment strategies.

My love is teaching others about investing and personal finance. My goal in writing many books and articles has been to demystify financial ideas and give readers the information they need to make wise financial decisions. I write with a direct, useful style that emphasizes doable suggestions for daily living.

Along with writing, I lead webinars and seminars where I impart knowledge on how to successfully negotiate the financial world. I also write for financial journals and show up as a guest expert on financial news programs a lot. Whether they are new to investing or want to improve their approach, my mission is to enable people to take charge of their financial futures.

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