U.S. Bank introduced a new business diversity lending program that will expand the ability of women-, minority- and veteran-owned businesses to obtain capital, building upon the bank’s broader efforts to support underrepresented businesses and help address the wealth gap.
Through its business diversity lending program, U.S. Bank will provide credit and financing to help women-, minority- and veteran-owned businesses grow and thrive. The program will be based on traditional loans and lines of credit at U.S. Bank, allowing for modified credit guidelines that enable more business owners to access the funding they need to run their businesses. More specifically, under the program, eligible businesses may qualify for reduced credit score and decreased cash flow coverage requirements on most conventional lending products up to $2.5 million. Businesses are eligible if they are at least 51% owned and operated by one or more individuals who self-identify as a woman, minority and/or veteran.
The U.S. Bank business diversity lending program is a type of special purpose credit program, or SPCP, permitted by the Equal Credit Opportunity Act (ECOA). These programs are specifically designed to improve access to capital for members of economically disadvantaged groups.
U.S. Bank is launching the business diversity lending program following last year’s acquisition of MUFG Union Bank, which was a pioneer in implementing an SPCP for small businesses, launching its own business diversity lending program around 30 years ago.
“The business diversity lending program is the latest commitment by U.S. Bank to power the potential of all of our customers and help close the wealth gap,” Sekou Kaalund, head of branch and small business banking at U.S. Bank, said. “Small businesses are the bedrock of the U.S. economy, and by broadening access to capital, we are helping to fuel more business owners’ dreams and drive economic growth. By building stronger women-, minority- and veteran-owned businesses, we are creating more vibrant communities for everyone.”
