CHARLOTTE, N.C. (1/5/12)--The Democratic National Convention Committee (DNCC) announced it has deposited convention funds totaling $2 million each in two North Carolina minority-owned financial institutions--Latino Community CU (LCCU) and Mechanics and Farmers Bank.
The $2 million deposits are in non-interest bearing accounts.
DNCC made the announcement Wednesday afternoon at a press conference at the historic North Carolina Mutual Insurance Building in Durham, N.C. The building is the oldest and first African American-owned insurance company in the nation.
The funds "will help these institutions expand lending and economic development efforts to communities across the state," said Steve Kerrigan, DNCC CEO, noting that the committee "is working to bring Americans together to strengthen the economy ion a way that creates more opportunity for all communities."
DNCC typically deposits a portion of its federal grant in minority-owned banks in the city where the Democratic National Convention is held. The tradition aims to provide local businesses and their customers with financial and public support in advance of a convention.
Durham Mayor Bill Bell said at the press conference that "Mechanics and Farmers Bank and the Latino Community CU are strong community partners, and the convention's investment in these banks will make a difference where it matters in the city of Durham and across the state of North Carolina. We value the DNCC's commitment to diversity in choosing these two institutions."
The deposit "will continue to help us put deposits from institutions and individuals to work to help improve our local communities, through loans for working families to own their own homes, to build a credit history, or to improve their microbusiness," said Alison Beck Yonas, vice president of finance for the credit union. "LCCU's presence has been shown to reduce crime and improve property values, for the benefit of all North Carolinians."
Kim Saunders, president/CEO of Mechanics and Farmers Bank, noted that "as one of North Carolina's select few community development financial institutions," the bank "plays a critical role in expanding access to capital and providing lending services to North Carolina markets that traditionally have been underserved."