Bronx, New York (PRWEB) January 03, 2014
The U.S. Treasury’s Community Development Financial Institutions Fund (CDFI Fund) has announced that Spring Bank, a Bronx based commercial lender, has been certified as a Community Development Financial Institution, making it one of only three banks in New York State to be so recognized. The CDFI application process began in early 2013 and included a rigorous analysis of Spring Bank’s lending practices, deposit products, and financial health. The bank has been operating in the Bronx since 2007, when it became the first bank in 25 years to both open and headquarter itself in the borough.
“This is a tremendous affirmation of the value Spring Bank has brought to the Bronx, as well as the rest of New York City. We’ve earned a reputation as an innovative community bank for New York neighborhoods in need of a dedicated financial partner,” said Eric Pallas, Spring Bank’s President. “We’re pleased to receive this recognition, to share the honor with our partners and customers, and we’re grateful for the support that the CDFI Fund lends to our mission.”
The CDFI Fund reserves its designation for those organizations which demonstrate a history of working toward the revitalization of economically depressed communities. Spring Bank's certification reflects the dedication of the bank’s board, staff and community partners to its uncommon progressive mission.
“We’re a bank for everybody,” said Pallas. “We opened in the Bronx because the Bronx needed a local bank, and we expanded into Harlem because we saw a clear need there as well. We serve and provide economic development in needy communities, and we do it ethically and responsibly.”
Regarding the role of CDFIs in the economies of low and moderate income communities, CDFI Fund Director Donna Gambrell noted: “CDFIs play a vital role in job creation. Their investments in low-income communities frequently create permanent jobs for local residents, as well as construction jobs for new developments.”
Founded in 2007 to serve New York City’s underbanked, Spring Bank is an FDIC-insured, independently owned community bank headquartered in the Bronx, New York. In December 2012, the Bank’s second branch opened in the Harlem community of Manhattan. Since its founding, a primary mission of the Bank has been to provide the products, services and education that enable low-wealth customers to benefit from mainstream banking. Spring Bank is equally committed to stimulating and supporting small business growth through deposit and loan products. The majority of Spring Bank lending goes to businesses in the five boroughs, with a significant portion designated for low and moderate income census tracts. The Bank provides a wide range of innovative deposit and lending services. Spring Bank’s dedicated SBA loans division is one of the busiest in NYC, with the Bank recently being rated among the 100 most active SBA 7(a) lenders in the country.
Since its creation in 1994, the CDFI Fund has awarded more than $1.7 billion to CDFIs, community development organizations, and financial institutions through the CDFI Program, the Bank Enterprise Awards program, and the Native American CDFI Assistance program. In addition, the CDFI Fund has allocated $33 billion in tax credit authority to community development entities through the New Markets Tax Credit Program.