NFL looks to give a boost to Black- and minority-owned banks
The National Football League is making a big play to increase lending in underrepresented communities.
The league is borrowing $78 million from a syndicate of Black- and minority-owned banks and community development financial institutions.
The loan deal will generate «tier 1 capital» for the banks and CDFIs. According to the National Black Bank Foundation, it will boosttheir lending power by millions through banking fees and interest. The full terms of the loan are not being released.
However, Joe Siclare, the NFL's executive vice president of finance and league policy, said the terms are at «market rates,» and the league plans to fully draw on the loan over the next three years.
«These banks play a vital role in our overall economy and many of them are in markets that our teams play, so there is good synergy there,» Siclare told CNBC.
«These community banks sometimes have difficulty navigating down economic times. When large corporations like the National Football League can partner and provide reliable revenue streams, it helps those banks continue to do the great work they do in their communities,» he added.
The NFL deal follows a similar $35 million loan linked to the National Basketball Association's Atlanta Hawks for a practice facility in 2020 and a $25 million loan with Major League Soccer in 2022, both of which were arranged by the NBBF and a syndicate of Black-owned banks.
NBBF co-founder Ashley Bell is hopeful these deals will prove Black- and minority-owned banks are viable partners for large corporations long term, especially with the threat of an economic downturn or recession that would likely have a bigger effect on communities of color.
«These banks loan money to people and businesses that need it
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