Next City : One Tiny Credit Union Is Powering Brooklyn’s Economy
SHOW NOTES
Take a guess. Which of these banks is making more small-business loans in Brooklyn: Citibank, Wells Fargo, Bank of America or Brooklyn Cooperative Federal Credit Union, a small financial institution that has only about $50 million in assets?
That's a mere rounding error compared to the major players, or even many other community banks. But, as our economic justice correspondent Oscar Perry Abello explored a two-part series late last year, Brooklyn Coop punches above its weight through lending to Brooklyn's Black and Brown small business owners.
“This one tiny credit union has done more SBA loans in Brooklyn than Citi, Wells Fargo and Bank of America combined over the past 10 years, he says. Their strategy? While other highly-ranked Small Business Administration-guaranteed lenders are making loans that average about $120,000 in size. But Brooklyn Coop's average loans sit at around $24,000.
In this episode, we chat with Brooklyn Coop CEO Samira Rajan about its human approach to lending – and why getting megabanks to fund more Black and Brown communities and small businesses isn't the answer to powering our economy.
“I think banks are designed to say no,” Rajan says. But Brooklyn Coop and other community development financial institutions, or CDFIs, have another approach. “Throw open the gates. It's OK if these people get access to bank accounts. It's OK if they get credits. We'll all be better off in the long run.”
To learn more about Brooklyn Coop and its alternative model for small business lending, listen to this episode and subscribe to Next City. And for more stories about financial institutions focused on serving minority communities, check out our ongoing CDFI Futures series where we're exploring the community development finance industry through the lenses of equity, public policy and inclusive community development.
That's a mere rounding error compared to the major players, or even many other community banks. But, as our economic justice correspondent Oscar Perry Abello explored a two-part series late last year, Brooklyn Coop punches above its weight through lending to Brooklyn's Black and Brown small business owners.
“This one tiny credit union has done more SBA loans in Brooklyn than Citi, Wells Fargo and Bank of America combined over the past 10 years, he says. Their strategy? While other highly-ranked Small Business Administration-guaranteed lenders are making loans that average about $120,000 in size. But Brooklyn Coop's average loans sit at around $24,000.
In this episode, we chat with Brooklyn Coop CEO Samira Rajan about its human approach to lending – and why getting megabanks to fund more Black and Brown communities and small businesses isn't the answer to powering our economy.
“I think banks are designed to say no,” Rajan says. But Brooklyn Coop and other community development financial institutions, or CDFIs, have another approach. “Throw open the gates. It's OK if these people get access to bank accounts. It's OK if they get credits. We'll all be better off in the long run.”
To learn more about Brooklyn Coop and its alternative model for small business lending, listen to this episode and subscribe to Next City. And for more stories about financial institutions focused on serving minority communities, check out our ongoing CDFI Futures series where we're exploring the community development finance industry through the lenses of equity, public policy and inclusive community development.
Next City
Join Lucas Grindley, executive director at Next City, where we believe journalists have the power to amplify solutions and spread workable ideas. Each week Lucas will sit down with trailblazers to discuss urban issues that get overlooked. At the end of the day, it's all about focusing the world's attention on the good ideas that we hope will grow. Grab a seat from the bus, subway, light-rail, or whatever your transit-love may be and listen on the go as we spread solutions from one city to the Next City .
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