NEXT CITY – Public Bank LA is one step closer to becoming a reality! With the financial system so tilted against local businesses, especially Black-and Brown-owned businesses, the time has come for L.A.’s first city-owned bank. And with a recent city council vote, that solution is one step closer, writes Oscar Perry Abello for Next City.
The LA Public Bank would partner with local financial institutions like Inclusive Action for the City to assist LA’s street vendors and micro-entrepreneurs, enabling loans with favorable terms for borrowers or projects that struggle to secure responsible, non-predatory financing.
Prince Osemwengie of Inclusive Action discusses the desire of small businesses & developers to acquire the commercial properties they’ve rented for years. Existing SBA loan programs exclude them despite being marketed as support for ineligible borrowers. A public bank could help.
Trinity Tran: The Jain Family Institute and Berggruen Institute reports provide a roadmap for the operational elements of an L.A. public bank. These reports help shape the discourse and drive the vision for the policies and the framework. It’s important to frame this as doable.
#PublicBankLA could have a $952M portfolio in its first year. The series projects growth over 10 yrs w/ different scenarios: housing, small business & renewable energy. The bank could finance 1,700 affordable housing units, 140 worker-owners & 2.9M green megawatt hours annually.
Alison Lingane of Project Equity supports worker-ownership transitions like Proof Bakery LA becoming a cooperative. A dedicated capital pool in LA would accelerate transitions. The LA public bank could provide loan guarantees and other products to facilitate co-op conversions.
Continue reading the article in Next City: Public Banking Efforts Are Gaining Momentum And Clarity In California.