The National Football League (NFL) is implementing a strategic initiative to promote lending in communities that are typically overlooked. To achieve this, the league has secured a loan of $78 million from a consortium of Black- and minority-owned banks and community development financial institutions (CDFIs). This loan agreement will generate “tier 1 capital” for the banks and CDFIs, significantly boosting their lending potential through banking fees and interest. While the specific terms of the loan have not been disclosed, Joe Siclare, the NFL’s executive vice president of finance and league policy, affirms that the terms are set at market rates, and the league intends to fully utilize the loan over the next three years.
Siclare emphasizes the synergy between the NFL and these community banks, as they operate in markets where the league’s teams are located. He acknowledges the challenges smaller banks face during economic downturns and highlights the NFL’s ability to provide reliable revenue streams as a means of supporting these banks’ community work.
This move by the NFL follows similar loan agreements, such as the $35 million loan connected to the Atlanta Hawks, a National Basketball Association team, for their practice facility in 2020, and the $25 million loan established with Major League Soccer in 2022. The National Black Bank Foundation (NBBF) facilitated both of these loan arrangements alongside a consortium of Black-owned banks. Ashley Bell, a co-founder of NBBF, expresses optimism that such deals will demonstrate the viability of partnerships between large corporations and Black- and minority-owned banks, particularly in light of potential economic downturns that tend to disproportionately affect communities of color.
Furthermore, Bell highlights the crucial role played by these banks in providing non-predatory loans to individuals and businesses in need, which grants them financial breathing room. These banks serve as beacons of hope within their communities, offering opportunities for growth and advancement. By supporting these institutions, the NFL actively supports these communities.
Before finalizing the loan, the NFL sought guidance from Bank of America and the NBBF. Bell regards this financial injection as essential amid the ongoing scrutiny surrounding community banking.
The collapse of Silicon Valley Bank in March triggered a regional banking crisis, potentially destabilizing numerous Black and minority financial institutions. The NBBF emphasizes that these banks are often “hyper local,” with 85% or more of their loans targeting underrepresented groups within their respective regions.
Bell suggests that collaborating with the NFL signifies credibility and capability in executing complex deals. This partnership reinforces the idea that these banks can be trusted with home loans, lines of credit for businesses, churches, and faith organizations, ensuring the best service for their customers.
Dominik Mjartan, CEO of Optus Bank in Columbia, South Carolina, one of the 16 financial institutions participating in the loan, affirms that the NFL’s involvement will enable Black- and minority-owned banks to generate income and reinvest it into the community. This opportunity strengthens their ability to fulfill their mission of serving underserved and underestimated customers and communities.
By supporting lending in underrepresented communities, the NFL is taking a significant step towards fostering economic growth and equality. This partnership showcases the league’s commitment to creating positive social impact beyond the realm of sports.
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