Today the Multnomah County Board of Commissioners approved a resolution Proclamation (19.4 KB) that would invest $10,000,000 of county funds with qualifying local community banks and local credit unions.
The Community Advantage Banking Program (CAB) would provide deposits for these approved banking institutions to make loans to members of local communities.
Unemployment in Oregon is the eighth highest in the country—currently about 9.9 percent of Oregonians are without employment. By making this investment, Multnomah County hopes to stimulate economic activity in the area and thereby improve quality of life for residents. The loans resultant from the county’s investment dollars will promote new and existing businesses, help save and create jobs for Oregonians, enable home and automobile purchases and improvement, and cover tuition expenses.
In order to participate in this innovative new program, local community banks and credit unions must meet several requirements. Among other conditions, these institutions must be headquartered in Oregon, have assets that do not exceed $1 billion, and their Boards of Directors must approve a resolution affirming participation in Multnomah County’s CAB program. Interest rates must also be equal to those offered by other institutions, which is currently about 0.25 percent.
Read The Portland Tribune’s article about Community Advantage Banking.