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.
