What makes a community a great place to live? Is it the amenities surrounding the community? Is it the people living in the community? Is it the fact you feel safe and comfortable in the community? Or is it a combination of all of the above?
My guess is it’s a combination of all factors. Through a program called the Community Reinvestment Act, financial institutions in the United States are constantly striving to make local communities better places to live through investments, involvement and committing to growth and social responsibility.
Enacted by the U.S. Congress in 1977, the Community Reinvestment Act encourages financial institutions to help meet the credit needs of the communities they serve — including low- and moderate-income neighborhoods.
While a vast portion of the public sees the local bank as simply a place to deposit and withdraw money, there is so much more going on behind the scenes. Banks are committed to investing in the community through direct sponsorships and financial donations.
A bigger community investment is a bank’s commitment to extending credit to individuals, local businesses and community organizations that are aimed at making a difference. Through these philanthropic investments, banks are making a positive impact by helping address issues vital to every community’s success, including affordable housing and workforce development.
By extending capital to individuals and small businesses, banks are assisting in stimulating economic development. Helping a local business owner get up and running creates an economic impact in the community and also stimulates job creation.
Affordable housing can also be a critical need. Through a wide range of programs, banks can get involved in lending for budget-friendly housing options.
Partnering with organizations like the United States Department of Agriculture to help fund affordable-housing complexes is one way banks step to the forefront to help the community. Supported by low-income tax credits and tax credits for energy efficient construction, banks are able to supply financing for projects that provide housing and help struggling families get back on their feet.
These types of projects are creating new opportunities and changing the lives of residents in the community and it is the type of business not normally associated when the average person thinks about their bank.
It’s movements like the Community Reinvestment Act that get the ball rolling and make strides to improve communities and invest in the sustainable future of local cities and towns.
Michael Drapeau is Rabobank, N.A. Vice President and Branch Manager in Murrieta. Rabobank, N.A. has nearly 120 retail branches in California, including Murrieta. Rabobank, N.A. is an Equal Housing Lender. www.rabobankamerica.com