Chicago City Treasurer Kurt Summers announced on Monday that the city will be depositing $20 million into The Illinois Service Federal and Loan Association, the last black-owned bank in the Windy City.
“If we’re going to be serious about supporting those communities and supporting community banks and what they do for small businesses, we have to look for opportunities like this,” Summers said in statement obtained by Business Day.
The bank has been a fixture in Chicago’s Black community since 1934 and is located on Martin Luther King, Drive. The goal of the investment is to combat segregation, economic disparity and ultimately, violence.
Summers also told the outlet that he’s hopeful the bank’s increased longevity will serve as a reliable source for Black small-business owners.
“The community banks are often more capable of evaluating the risks of local borrowers than large remote financial institutions,” he said.