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MARCH 12 - 18, 2026
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Backing community bank lending bills New York state officials joined forces conference in support of legislation that would expand lending in underserved communities and help stimulate economic development. Comptroller Tom DiNapoli, State Sen. James Sanders Jr. and Assemblyman Khaleel Anderson addressed the two bills developed by DiNapoli, with the assistance of Sanders, chairman of the Senate Committee on Banks, that aims to make it easier for community and minority-owned banks to access state deposits that help provide essential banking services and increase financing for small businesses and homeowners. “Supporting community and minority-owned banks and credit unions puts state funds to work in neighborhoods that have historically been overlooked, DiNapoli said in a news release on the March 4 news conference. “These funds will help expand financial services, increase access to capital and build wealth through homeownership, entrepreneurship and job growth. It is a winwin for the state and our local communities.” The first bill (S.8357/A.9574), authored by DiNapoli and sponsored by Sanders and Anderson, would reduce a barrier to participation in the Banking Development District Program, which places public deposits in financial institutions serving underserved communities. The proposed bill would allow participating banks to use reciprocal deposits to meet collateral requirements, allowing state deposits to be insured through FDIC-backed deposit placement networks, instead of requiring traditional collateral, freeing up more capital for lending. “After we discovered how the state was not maximizing the participation of all communities in economic development, we knew we had to act,” Sanders said in the release. “These refor ms ensure that public dollars are not just sitting on the sidelines, but actively working in the neighborhoods that need them most. By modernizing our deposit programs and removing outdated barriers, we are empowering community banks and minorityowned financial institutions to expand lending, support
Courtesy Office New York State Comptroller
Comptroller Tom DiNapoli, at lectern, State Sen. James Sanders Jr., second from left, and Assemblyman Khaleel Anderson unveiled two proposed bills to stimulate lending in underserved communities. small businesses, and help families build wealth. This is how we create real, lasting opportunity – by making sure every community has access to the financial tools that drive growth.” The second bill (S.8406/A.9573), also written authored by DiNapoli and sponsored by Sanders and Assemblyman Clyde Vanel, would raise the Community Bank Deposit Program cap from $20 million to $30 million, expanding participating banks’ ability to support mortgages, small businesses, farms and local development. “The modernization and flexibility that these bills provide will allow community banks and minority deposit institutions to serve the public more efficiently, and to ultimately support the underserved communities that the BDD program and CBDP were designed to help, Anderson said in the release.” The BDD program is administered by the Department of Financial Services to encourage participation. DiNapoli’s
office makes public deposits available up to $35 million to banks and credit unions to open or maintain a bank branch. DiNapoli has awarded deposits totaling nearly $505 million to 13 banking institutions that have opened or maintained branches in DFS-designated BDDs across New York State. “At the end of the day, this is about access,” Assemblywoman Chantel Jackson, chair of the New York State Black Legislative Task Force, said in the release. “For too long, our neighborhoods have been locked out of real investment while capital sat on the sidelines. These bills change that by cutting red tape and raising the cap so community banks can do what they’re meant to do, invest in us. That means more mortgages for firsttime homebuyers, more small business loans, and more support for local entrepreneurs. This is economic justice, not just talking about closing g aps, but redirecting
resources to strengthen Black and Brown communities and keep opportunity where it belongs.” “We support this legislation, which will allow for critical investment in the communities that need it most,” Sherri Eckles, president of the NY Mortgage Bankers Association said in the release. “By capitalizing community banks and minority depository institutions with state funds, we can unlock additional access to mortgage lending, small business and farm loans, and economic opportunity in underserved areas across the state.” –Jeffrey Bessen