Webinar: Access to Capital for Black & Latino Businesses - Implementation of Section 1071 of Dodd Frank Act by NMCRC

Access to Capital for Black & Latino Businesses - Implementation of Section 1071 of Dodd Frank Act

About

Section 1071 of the Dodd Frank Act of 2010 mandated that all banks must provide actual small business loan data by race and zip code annually to the Consumer Financial Protection Bureau. Section 1071 was an historic legislative act that mandates that banks provide transparency on racial economic equality through actual loans to Black & Latino small business. This racial loan data will provide actual facts on which banks are or not providing actual loans to minority and women owned small businesses. This data will allow Black & Latino communities in each city to determine if banks are providing access to capital that mirrors their respective percentage of those cities’ population. In short, if a bank is redlining Black & Latino small businesses that are critical to job creation for Blacks and Latinos.

But over 10 years later, Section 1071 was still not implemented by the Consumer Financial Protection Bureau (CFPB) due to pressure from banks across the United States. But the California Reinvestment Coalition and NALCAB (National Association for Latino Community Asset Builders) filed a federal lawsuit in California to force CFPB to implement section 1071, and were victorious. So, in 2021, ALL BANKS must now report by race, all small business loans to CFPB and the CFPB must publish this data. In this session, Ms. Paulina Gonzales-Brito, Executive Director of CRC will outline the components of Section 1071, and how Black & Latino communities in ever city in the United States can access this minority small business loan data (by bank) and publish this data locally so our communities can determine which banks are lending and NOT lending to Black & Latino small businesses.

WEBINAR ENDED

Presenters

Paulina Gonzales-Brito

Executive Director - California Reinvestment Coalition

Paulina Gonzalez-Brito is Executive Director of the California Reinvestment Coalition. Paulina identifies as Xicana, Purepecha, Mestiza. As the great granddaughter of Mexican Arizona copper miners who took part in the historic Metcalf-Greenlee strikes in the early 1900s and the daughter of an immigrant union hotel worker, Paulina has dedicated her life’s work to economic and racial justice. She has worked for more than 20 years leading economic justice organizing campaigns to expand worker rights, immigrant rights, and the rights of low income and underrepresented communities of color.
Under her leadership, CRC has expanded its work to directly challenge systemic and structural racism within the U.S. financial system and to focus CRC’s work on building collective political and organizing power amongst and with frontline communities to close the racial wealth gap. During this time, CRC sued the Trump administration for pulling back the Consumer Financial Protection Bureau’s data collection duty to protect women-owned and people of color owned small businesses against discriminatory lending. As a result the CFPB agreed to stop flouting the law and commit to finalizing data collection rules to protect small businesses from discriminatory lending practices. In addition, CRC worked with a coalition of California consumer advocates to establish the country’s strongest state consumer protection agency; the Department of Financial Protection and Innovation is essential in preventing a repeat of the massive wealth transfer that occurred during and after the 2008 financial crisis.
Paulina has testified before the U.S. House, Senate and Sacramento Legislature on the need for greater oversight and accountability in the banking sector to prevent financial actors from extracting wealth from Black and Brown communities. She is frequently called upon to speak as an expert in the fields of Wall Street accountability, discrimination in lending, equitable reinvestment by financial institutions, and democratizing finance through alternative and community-owned financial models, and has been profiled/quoted in The New York Times, The Wall Street Journal, The L.A. Times, NPR, Univision, La Opinion and other national media outlets.
Paulina currently serves on the Board of Directors for the National Association for Latino Community Asset Builders, and has previously served on the Community Advisory Council of the Federal Reserve Bank of San Francisco, the San Francisco Municipal Bank Feasibility Task Force, and the Consumer Financial Protection Bureau’s Consumer Advisory Board.

Jay Rosario

Dina Harris

National Faith - Founder & CEO

Marcos Morales

Hogar Hispano, Inc. - Executive Director

Access to capital is paramount to the success of HHI and other community development corporation and small businesses across the country. The future of affordable housing depends on it.