Opinion: Will SVB honor $9 billion promise to low-income Californians?
— for the financial and economic infrastructure of largely low-income communities of color.
The full $11 billion agreement included $4 billion in small business loans of $1 million or less; $4 billion in community development loans and investments; $1 billion in residential mortgages to low- and moderate-income borrowers; and $60 million in charitable contributions. SVB has now stumbled — and not because it agreed to help local communities but because it mismatched the maturities and yields of its deposits and its assets. Tech titans, who are often libertarian in their political leanings, have insisted that the federal government take extraordinary measures to save wealthy depositors, SVB and the banking system. But they have been silent on whether the obligations to California’s disadvantaged communities will be honored as well.
With public support should come public benefits. Places where new entrepreneurs can start and maintain a business, where neighborhoods are invested, where prospective homebuyers aren’t living paycheck to paycheck in order to make a mortgage — those are the types of communities that can better sustain themselves and anchor a healthy bank.
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