The NFL obtained advice from Bank of America and the National Black Bank Foundation concerning their loan. The specifics of the loan were not disclosed, though an executive from the league commented that the terms equate to "market rates" and the NFL intends to fully utilize the loan over the next three years. Ashley Bell, co-founder of the NBBF, expressed, "[This loan] is a much needed boost at the time when the reliability of community banking is being evaluated."
The National Football League is intent on boosting lending in underserved communities by tapping into a syndicate of Black- and minority-owned banks and community development financial institutions to borrow $78 million. This loan deal will provide the lenders with "tier 1 capital" bringing them millions in banking fees and interest. Although the full terms of the loan are not being made public, the NFL's executive vice president of finance and league policy, Joe Siclare, confirmed the terms are at "market rates", with plans to draw on the loan over the next three years.
Siclare explained that the partnership benefits both parties: "These banks play a vital role in our overall economy and many of them are in markets that our teams play, so there is good synergy there. These community banks sometimes have difficulty navigating down economic times. When large corporations like the National Football League can partner and provide reliable revenue streams, it helps those banks continue to do the great work they do in their communities.”
The current loan follows similar agreements made between the National Basketball Association's Atlanta Hawks for a practice facility in 2020 and Major League Soccer in 2022. Both deals were put together by the National Black Bank Foundation (NBBF) and a syndicate of Black-owned banks. NBBF co-founder Ashley Bell is hopeful these agreements prove that Black- and minority-owned banks are a viable option for large corporations. He is especially mindful of the greater threat of an economic downturn or recession that would likely hit communities of color the hardest.
The NBBF claims that these financial institutions are "hyper local," providing 85% or more of the loans to underrepresented groups in their area. Therefore, Bell believes this loan from the NFL helps their brand and earns their trust from potential customers, a sentiment echoed by Dominik Mjartan, CEO of Optus Bank in Columbia, South Carolina, one of 16 partners on the loan: "The NFL giving us this chance to participate, it enhances our ability to deliver on our mission to serve underserved, underestimated high-potential customers and communities."
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