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Derek Green
Former City Councilmember | Philadelphia, PA

Establishing a Public Bank in the City of Philadelphia

Idea Category: Equity & Opportunity, Jobs and Entrepreneurship

Problem

As we work to rebound from the devastating effects of the COVID-19 pandemic, we are also seeing with fresh eyes some of the longstanding inequities and disparities exacerbated by this global public health crisis. Equitable economic opportunities and access to capital for many small businesses, particularly minority- and women-owned businesses, are issues that spun out of decades of redlining and systemic racism. Black and Brown neighborhoods in Philadelphia, the poorest of the 10 largest U.S. cities, continue to see increasing levels of poverty and homelessness as a result of lack of equal access to job and entrepreneurial opportunities. Currently, despite Philadelphia having a population that is 43% African American, only 6% of the businesses with employees in the city are Black-owned.

Solution

Creating a municipally owned bank in the City of Philadelphia would enhance the ability of many small businesses and entrepreneurs of color, as well as other grassroots and community organizations to obtain access to capital, establish a lending history, and gain a foothold in generating long-term wealth when existing lenders might otherwise deem them "hard to lend to" or "credit unworthy".