Our Bank Deposit Financial Assistance Program was developed for the purpose of strengthening and expanding the Nation's minority and women-owned small business enterprises. In order to classify as “minority” the institution’s majority ownership must include African Americans, Hispanic Americans, Asian Americans, American Indians, Eskimos, Aleuts, and women. The minority institution must certify minority ownership with the Department of the Treasury and appear on Treasury’s Roster of Financial Institutions Participating in the Federal Government’s Minority Bank Deposit Program.
In keeping with the intent of the Program, we purchase certificates of deposit from those minority financial institutions which desire to participate in the Program. The institutions in turn use the principal obtained from purchase of the certificates of deposit by the Department to provide development loans to minority and women-owned small business enterprises. We believe that the opportunity for full participation in our Nation's free market enterprise system by minority and women-owned small business enterprises is essential for a strong national economy.
How does the program operate?
Administrative financial institutions serve as “trustees” for our Bank Deposit Financial Assistance Program. In order to become administrative financial institutions, banks must first pass a financial evaluation to determine their suitability to act as a “trustee.” Once approved to participate in the program, we sign a Declaration of Trust agreement with the administrative financial institution describing each party’s responsibilities for the program. As trustee, the administrative financial institution administers the investment of the Petroleum Pricing Violation Escrow Funds in the minority financial institutions participating in the program.
