By Dr. Sinclair N. Grey III
Let’s face it – there’s a growing need for more Black-owned banks in the United States. With so many minorities trying to obtain loans to start a business or to simply refinance their home, Blacks are being denied by mainstream banks. Because Black-owned banks are vibrant to the Black community, it’s imperative that we support them in every way possible. Unless they receive our support, they will quickly go out of business.
Did you know Chicago’s largest Black-owned bank – Seaway Bank was sold to the State Bank of Texas of Dallas.
According to theGrio, “The bank, which had 10 locations in total, was forced to close after being hit hard by the housing crash. During this time, many homes on the Southside of Chicago plunged in value, making it difficult for some families to afford their mortgage.”
When Seaway was acquired, it had $361.2 million in assets and $307 million in deposits. Even with the #BlankBlackMovement, Seaway struggled to acquire new funders within the Black community.
“Big banks are less likely than black-owned banks to approve mortgage applications for blacks than other racial groups. In fact, a Time article written last year shows that the approved mortgage applications for African Americans are only 5.3 percent, down from 7.8 percent in 2007. Without approval on mortgages, it makes it tough for blacks to own property within their own community. It also makes it much more difficult for our community to rebuild new schools, stores, and other black-owned spaces needed to propel our community forward.”
At the moment, there are roughly 20 Black-owned banks in the United States. This number is definitely too low.