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U.S. Treasury to unveil funding boost for minority lending next week -Breaking

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© Reuters. FILEPHOTO: This sign can be seen at the United States Department of the Treasury Headquarters in Washington, D.C., U.S.A, August 29, 2020. REUTERS/Andrew Kelly

By Andrea Shalal

WASHINGTON, (Reuters) – U.S. Treasury secretary Janet Yellen will be joined by Vice President Kamala Harris to announce substantial new financing to increase lending to low-income communities and minority-owned businesses at a racial equality forum that takes place on Tuesday.

A Treasury spokesperson stated that the administration of Joe Biden will announce a major milestone in its efforts to make America more fair for Black, Latino and Asian communities at 2021 Freedman’s Bank Forum.

Under Jack Lew (then Treasury Secretary), the forum started in 2016. He changed the name of the Treasury Annex Building, which is located across the main Treasury into the “Freedman’s Building”.

Abraham Lincoln founded the Freedman’s Savings and Trust Co. It was established in 1865 to help newly freed Black Americans build wealth, financial security and protect their earnings. This bank was instrumental in helping around 100,000 Blacks and their institutions to save and accumulate wealth of $57 millions. It also paved the path for minor depository institutions.

The racial wealth gap continues. U.S. data show that the typical white family owns eight times more wealth than the typical Black household and five times less than the typical Latino home.

Treasury will present its plans to allocate capital to minority depository institutions and depository community financial institutions (CDFIs), Tuesday. This is to provide support for loans, grants and forbearance to minority-owned companies and low-income consumers.

Harris and Yellen announced $1.25B in relief for 863 community-development financial institutions at White House in June. Additional funding is expected to follow Tuesday.

These funds were part of the $12 billion that Congress allocated for minorities in a relief package worth $900 billion. It was led by Senator Harris at the time.

John Hope Bryant founder of Operation Hope (a non-profit organization that works towards ending poverty), welcomed Treasury’s efforts as “a move in the right directions”, but stated that there was still much work to be done to correct decades of inequality.

According to him, doing so will boost America’s overall economy. He cited a Citigroup The study, published by NYSE:, estimates that the U.S. has lost $16 trillion in economic output since 2000 due to discrimination against African Americans.

According to a spokesperson, the Treasury department will also highlight how programs such as an expanded child credit and emergency rental aid have allowed for a more equitable recovery. It will also reveal other measures to combat racial inequality.

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