U.S. Transportation Secretary Ray LaHood announced last week that black-owned Carver Federal Savings Bank will become the first New York bank to participate in the U.S. Department of Transportation’s (DOT) Short Term Lending Program. 

Carver Federal Savings Bank, which is based in Harlem, is the largest African-American bank in the United States and the only New York lender in the DOT small business initiative.  

“This is an opportunity to highlight a bank in New York that has had an outstanding reputation for a long period of time and has set a high bar,” LaHood told BlackAmericaWeb.com. “Carver Federal Savings Bank has stepped up in hard economic times to become a leader and help disadvantaged businesses.”

Rep. Ed Towns (D-NY) called the Carver-DOT partnership “historic.” 

The program, administered by the DOT Office of Small and Disadvantaged Business Utilization, is designed to help small and disadvantaged businesses gain access to the financing they need to compete for transportation-related contracts, such as American Recovery and Reinvestment Act 2009 (ARRA) projects. Under STLP, the DOT guarantees up to $750,000 in loans with participating lenders for small and disadvantaged businesses. The loan guaranty provides a revolving line of credit for work on transportation related contracts.

The partnership with DOT continues Carver’s long history of service to the small business community. Carver was founded in 1948 to serve African-American communities whose residents, businesses and institutions had limited access to mainstream financial services. 

“Carver is an experienced lender to small businesses in our neighborhoods,” Deborah C. Wright, chairman and CEO of Carver Bancorp, Inc., said in a statement. “We therefore know firsthand the central importance that financing plays in allowing small businesses to compete for new business, and therefore grow, create jobs and build wealth for individuals and their communities.” 

“The role of small businesses in creating high quality and enduring jobs is central to the American dream,” she said, “and we are grateful to the Obama administration and Secretary LaHood for their recognition of the importance of small businesses in underserved communities.”

LaHood’s announcement comes as the Congressional Black Caucus released a statement reminding President Barack Obama about his 2008 speech in Philadelphia where he vowed not to “ignore” race if elected. 

“With more than 24 percent of African-Americans living below the poverty line and African-Americans 55 percent more likely to be unemployed than other Americans, the existence of racial disparities is undeniable,” said Rep. Barbara Lee, a Democrat from California.

Obama doesn’t speak often about race issues, but LaHood said the Obama administration is determined to help minority-owned businesses succeed.

“Today’s announcement is another example of the Obama administration’s commitment to helping minority-owned small businesses realize the American dream and contribute to making our transportation systems even better,” LaHood said in a statement.  “Working with trusted partners like Carver Bank, we’ll make sure that entrepreneurs who work hard get the help they’ve earned to succeed and grow – and keep America working.”

Named for George Washington Carver, Carver is the largest African- and Caribbean-American operated bank in the United States and channels its capital resources into underserved neighborhoods by reinvesting over 80 percent of its deposits into the black community, according to its Web site.

Carver is headquartered in Harlem, and most of its eight branches and stand-alone 24/7 ATM centers are located in low-to-moderate income neighborhoods.

“This is what responsible community banking is all about,” Rep. Charles Rangel (D-NY) said in a statement. “I encourage more of our banking institutions to follow Carver's lead and find ways to help small and disadvantaged business raise the financial capital necessary to compete for contracts that will not just maintain jobs, but expand employment opportunities in all communities.”

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