248
Sankofa Capita
2401 Lake St # 130, Omaha, NE 68111
Victor Beanum
Partner
sankofacapitalomaha@gmail.com
+1 (402) 707-1165
Yes
Malinda Starr Williams and Victor Beanum
Sankofa Capital
10000000.0
10000000.0
Combination of capital project and service/program
Achieving the American dream—the opportunity to succeed, to provide food and shelter for family members, education for children, hope for a better life, and freedom of opportunity— requires capital. And to grow capital, you need capital. It’s a basic tenet of our economy. Most houses are bought with a mortgage and most businesses rely on credit to fund their expansion. But for generations of North Omaha Black Americans, equitable access to the banking system is a promise that has never been fulfilled. From Jim Crow laws to the New Deal, Black Americans have faced systemic financial discrimination and exclusion, casting a long shadow of economic disparity that continues today. This proposal will do the following: 1. Capital to acquire and scale. LB 1024 funds will be used to acquire a community bank and transition the bank to North Omaha. Funds will be used to upgrade IT costs and any compliance expenses. 2. Increase Revenue opportunities. LB 1024 funds will be us to market our services to more corporations, governments, and state and federal agencies. 3. Increase deposits. While two years ago, his community bank would have greatly benefited from a boost in deposits, liquidity is currently plentiful in this market. Many businesses, including Netflix and PayPal, have moved millions in deposits to minority institutions to support the social justice movement. We will capitalize on being the twentieth (20) black own banked in America. Sankofa Capital’s mission has been to provide Omahans with access to capital and competitively priced banking solutions. Projected Four Year Outcomes: ● $120m – in assets ● $23 million in loans through public and private partnerships ● $85 million in new community lending ● $.80 – approximately 80 cents of every dollars is reinvested back into our community fueling business growth, job creation, and development ● 500 – Support more than 500 loans to small business nationwide, through partnerships. Sankofa Capital must be central to any economic recovery action plan for North Omaha.
▪ November 2022 – • Meet with Dept of Banking and start the process of moving the charter to North Omaha ▪ January 2022 • MOUs signed with local partners ▪ Feb - July 2023 • Purchase and Regulatory • Charter Issued/Changed ▪ Aug 2023 to May 2024 • Operate out of Temporary location ▪ May 2024 • Opening headquarters
1.0
Fundamental Change (i.e., a proposal that will continue to elevate North or South Omaha's presence and perception within the region, significantly improving the lives of area residents through physical development) Long-Lasting Economic Growth (i.e., a proposal that will foster gainful employment opportunities and financial investment in the area, leading to the creation of generational wealth and widespread economic vitality in North and South Omaha) Transformational (i.e., a proposal that will help energize, recharge, or spur significant and favorable advancements in North or South Omaha's function or appearance)
Sustainable Community (i.e., create or enhance housing, services, education, civic uses, recreation, etc.)
□ Transformational – This proposal closes the gap for the unbanked. Checking and savings accounts are two common entry points for building a relationship with a bank, but about 7 million Americans lack them, and there’s a trend across racial and ethnic lines. About 16% of Native American households, 14% of Black households and 12% of non-white Hispanic households don’t have bank accounts, compared to 2.5% of white households, according to a 2019 Federal Deposit Insurance Corp. survey on the unbanked. Sankofa will bridge this gap by serving more low- and moderate-income areas in Omaha. □ Fundamental Change - $86 million in new lending with a focus on North Omaha will fundamentally change the financial landscape for North Omaha. □ Long-Lasting Economic Growth – Sankofa Capital will boost wealth with home loans and business loans. Homeownership is one of the biggest contributors to wealth for many, but it primarily benefits West Omaha. o Sankofa Capital will be a community bank located in North Omaha. Sankofa Capital makes sure the investment and the dollars stay within the community. A common service that banks provide is access to a checking account, allowing for the safe storage of an individual’s funds, typically in exchange for a minimal fee. In addition to accepting monetary deposits, banks also furnish loans for both individuals and businesses looking to finance crucial purchases. Banks also offer mortgages for real estate purchases. Many banks issue credit cards, which are valuable tools for building the credit history necessary to receive most loans. o Sankofa Capital will provide more money to borrowers living in low- and moderate-income census tracts than other banks. Sankofa Capital’s financial model is based on the fact it will be more willing to tolerate higher levels of risk than alternative institutions. Additionally, Sanokfa will focus its lending on small businesses, nonprofits, and North Omaha homebuyers.
See above.
See above
Employment will be immediately implemented specifically in the construction elements of the proposal. Sankofa Capital will provided more money to borrowers living in low- and moderate-income census tracts than other banks. Sankofa will focus its lending on small businesses, nonprofits, and North Omaha homebuyers. o 1. Sankofa Capital will focus on minorities, women, and other underserved groups including those impacted by COVI-19. Sankofa Capital is uniquely positioned to understand the needs of minorities, women, and other underserved populations within their communities. Creating relationships with businesses and individuals enables Sankofa to target products and services that reflect the economic conditions of North Omaha. Large commercial banks typically rely on fees to improve their profit margins, which comes at their customers’ expense. By contrast, Sankofa Capital, a community bank, offers more favorable fee schedules to allow their customers to keep more of their hard-earned money. By offering such benefits as free accounts, putting limits on monthly maintenance fees, and working with customers to avoid late fees and ATM fees, the community prospers as a whole. Customers demand the same services from Sankofa Capital they enjoy at large commercial banks such as online and mobile tools. o 2. Personalize lending experiences based on local reputation. By partnering with Omaha 100, Sankofa’s lending differs from large commercial bank lending in a significant way. Local people and businesses don’t always have the kind of detailed credit information large banks want. Yet, Sankofa and Omaha 100 can more easily base their lending decisions on a company or individual’s track record and reputation, which is harder for large banks to do because they don’t have a personal relationship with borrowers as community banks do. This relationship allows community banks to be more accommodating to the needs of communities. For example, community banks support 53% of all small business loans even though they only represent 17% of the total banking system. o 3. Make the most of digital transformation. Today’s banking customers expect faster, better services and personalized interactions. Digital transformation will help to improve the existing relationships with customers, increase customer engagement, and improve the customer experience. By partnering with Sankofa and Redberry Innovations, Sankofa Capital we will be able to provide jobs and training to the North Omaha community. Also, more workers favor flexible, or remote working opportunities and technology will enable banks to provide alternate working accommodations. o 4. Working with the Underbanked and unbankable. By partnering with Omaha 100, a local CDFI, Sankofa and Omaha 100 will serve the underbanked and unbankable. The FICO scoring system, created in 1989, was designed to assess the creditworthiness of consumers. Scores range from 300 to 850. The FICO credit score is used by financial institutions as a qualifier to assess financial health. It is not easy for individuals to improve their financial health once their credit score is damaged. Black people are more likely to be excluded from conventional financial services based on their credit scores. Because Black people are more likely to have lower credit scores, they are more likely to be unbanked or underbanked, causing them to pay higher service fees to receive financial services and making them more likely to depend on alternative financial institutions. Financial institutions rely on FICO credit scores as a screening tool to protect themselves from financial loss due to asymmetric information. However, Sankofa will use alternative screening methods to reduce the disparity in banking access and fees. o There are only 19 Black-owned banks remaining in the United States, according to the FDIC. Nebraska can be the home of the 20th black owned bank. Over 80 million in new community lending!
18
57
70,000 average wage
see above
In addition to catalyzing the growth of jobs and businesses, Sankofa Capital will provide each household with full access to the financial system—the ability to make everyday transactions through a safe and affordable transaction account, have access to credit, hold insurance against key risks, be able to save for big goals or rainy days, and ultimately accumulate long-term wealth.
Community banks may not have the name recognition of large national banking brands. But for local residents and small business owners, community banks offer incredible value through their traditional banking services and their overall impact on your local area. o In recent years, the advantages once offered exclusively by national banks—especially regarding banking technology—have been virtually eliminated. At the same time, consumers are showing an increased preference for local businesses and organizations over national chains, which is helping spark renewed interest in community banking options. o Through a relationship with their local bank, individuals and businesses can realize important economic benefits that can’t be matched by a national bank. o Sankofa will invest in the local community, be more accommodating with small business loans and offer more favorable fee schedules.
We are partnering with national minority banks to establish the policy and procedures to be successful.
hrough the new job creation, with competitive wages the secondary economic impacts will waterfall into additional local businesses, restaurants, entertainment and other arenas regarding the overall conditions in both the North Omaha. Projected Four Year Outcomes: ● $120m – in assets ● $23 million in loans through public and private partnerships ● $85 million in new community lending ● $.80 – approximately 80 cents of every dollars is reinvested back into our community fueling business growth, job creation, and development ● 500 – Support more than 500 loans to small business nationwide, through partnerships.
These outcomes will be measured by our executive team through KPI’s and reported to the State and the Community. These metrics will be shared equally across local, city, county and state governments upon request and as needed for additional support of the rehabilitation and growth of these impacted communities.
none
Yes
Sankofa Innovation District
No
Sankofa will start in a temporary location (24th and Burdette) to immediately start training those for the future jobs coming. The final location will be at Enterprise Park. All of these opportunities will be within Qualified Census Tracts and serving those from Qualified Census Tracts.
Within one or more QCTs
Yes
Yes
No
No
No
Using general construction costs for the area
No
See above
Yes
Yes
We will raise any additionally dollars needed.
1.0
1.0
1.0
1.0
Pro Forma