Andre Alexander went from one bank to another in 2016 to try to provide funds for the nonprofit of his church. After meeting with four banking institutions in the St. Louis area, Alexander finally provided a loan to fund Corp.
Alexander is the main pastor of Tabernacle, a church in North St. Louis. He said many of his parishioners complained about the lack of affordable housing in the area. Through the non -profit wing of the Tabernacle, Alexander tried to help as many people as possible in North St. Louis become homeowners as possible. Through business loans he received over the yearsPeople could rent home through non -profit in 2016, and in 2023, she began selling home to buyers.
“Like any organization, especially to be a smaller nonprofit … the harder it is to gather the resources to do what you do, whether in the space of philanthropy or whether it’s a banking relationship,” Alexander said. “Also also to protect and make people see where you are worth investing.”
Alexander formed a relationship with St. Community Credit Union. Louis, a financial institution for community development, nearly two years ago. He was able to connect with former bankers from the institutions he previously worked with. The Development Corporation provided a loan by merging the loan for about $ 800,000 to assist in roof materials, construction, payment of contractors, demolition and rehabilitation.
“It has been very critical to help us continue our mission of shelter,” he said.
Union of St. Community Credit Louis is cooperating with James S. McDonnell Foundation, SSM Health AND BJC health care To provide more funding for business loans to minority business owners such as Alexander. Together, all three institutions provided $ 15 million to improve Community Impact Deposit Program.
Business owners from under -representation communities can apply to receive low -interest or no interest loans to assist with equipment, working capital, real estate and salaries.
“Access to affordable loans, especially for black and coffee -owned businesses, can be difficult to come,” said the president of the St. community loan union. Louis and Ceo Kirk D. Mills. “The significant deposits we received from the BJC, the James S. McDonnell and SSM Health Foundation are being used to help businesses hire new staff and grow.”
He said in a statement that the purpose of the program is to borrow money responsibly to help the maximum influence of the community.
The Credit Union Community Impact Deposits Program began in 2022. Private and public regional institutions have carried out over $ 30 million funding, which have been issued to businesses mainly black owned in the area. CDFI as the St. Community Credit Union Louis create a path for low -income color and communities to enter capital.
Many colorful business owners have historically been unable to use banking loans from traditional financial institutions due to systemic barriers such as racial discrimination and unilateral borrowing practices. Entrepreneurs often need to impoverish their savings accounts or borrow from family members to start their own businesses.
Inequalities among the owners of black businesses in the area are large. In St. Louis, white employed residents are 36% more likely to be business owners than black employed residents. According to the Federal Bank of St. Louis’s reserves, for every $ 1 of the white family’s wealth, black families own about 23 cents.
“Due to historical financial inequalities, most of the depositors we serve lacks the same savings capacity as customers from whiter, more concentrated financial institutions in the outskirts,” Mills said. “This means that we need to find alternative resources of deposits to meet the increasing needs of borrowing small businesses and customers.”
SSM Health Foundation, James S. McDonnell and BJC Healthcare are part of a national movement of large institutions investing in low -income and moderate communities through financing programs in credit unions.
“We are part of the largest community as employers, and we have learned over the years that aspects of people’s health, well -being and the ability to flower are much greater than access to extraordinary health care services,” Karen said Bradshaw, Regional Director of Community Health at SSM Health.
Bradshaw said if people are fighting financially to fund their businesses, their health and well -being will be extremely influenced.
“If we are thinking of offering strong economic opportunities and giving people the opportunity to have access to capital or having a hard salary job, you can start stopping the snow of negative things and starting the snow of positive things, To have a savings account or being able to get a loan from a bank or a credit union as the St. Community Credit Union. .
Creating generating wealth is Alexander’s plan continuing to build affordable dwellings in its community. He plans to apply for at least $ 1 million in capital through the loan union this year to help complete 18 new and rehabilitated houses in North St. Louis by the end of the year.
“I hope this is done by the heritage building for families,” he said. “This opportunity will give some of their chances in a first home. For some, this may be their second home, but they are looking to make it a tool for building assets.”
