Banc of California joins Rise Economy for $4.1bn community benefits plan
Banc of California has come together with Rise Economy to action a new $4.1 billion benefits plan for underserved communities and businesses across the Sunshine State.
Banc of California partners Rise Economy for benefits plan
The plan, which is expected to run over the course of three years, is comprised of a series of investment goals and targets, which if achieved, are intended to “make a meaningful and positive impact in communities” served by the two institutions.
Notable highlights of the plan’s agenda include a dedicated fund of $1.45 billion for small business lending, $2.3 billion for community development lending and an additional $300 million for community development investments.
It will specifically seek to benefit low-income communities and initiatives that spark social change across homelessness, equality and climate resiliency, among other areas.
Founded in 1986 and formerly known as the California Reinvestment Coalition (CRC), Rise Economy is an economic, housing and racial justice non-profit that works to improve access to services, credit and investment throughout underserved communities in California. Its partnership with the bank is therefore expected to enable the plan’s investment to land in the right hands.
For Banc of California, the partnership follows its July merger with PacWest Bancorp, combining assets valued at $36.1 billion.
John Sotoodeh, Banc of California’s chief operating officer, describes its partnership with Rise Economy as “a model of collaboration, with us working together to incorporate many of their critical recommendations”.
He also alleges that, at a wider level, the plan “showcases the positive benefits” its merger with PacWest will have on communities in California “in the years to come”.
“We are excited to see Banc of California step up on priority issues for our members, including special purpose credit programmes, affordable housing, climate resiliency, broadband access, and support for community land trusts as well as community development financial institutions and affordable housing non-profits led by people of colour,” adds Paulina Gonzalez-Brito, CEO of Rise Economy.
