Deal with SoCal Utilities Gives a Boost to Small Businesses
City National Bank has launched an innovative initiative to provide up to $350 million in loans to minority- and women-owned small businesses who supply three of California’s leading utilities – Southern California Gas Co., Southern California Edison and San Diego Gas & Electric.
The program is meant to help small businesses owned by women, minorities, service-disabled veterans and lesbian, gay, bisexual and transgender (LGBT) persons who want to establish strong banking relationships and need financial support to fulfill their contractual opportunities with these utilities. The bank and the utility companies are expected to provide education on financial services and business-banking products.
“We’re very pleased to be creating this innovative initiative, teaming up with SoCalGas, Edison and SDG&E,” said City National Chairman and CEO Russell Goldsmith. “All of these companies share with City National a deep commitment to supporting Southern California’s emerging entrepreneurs. This partnership is a great example of the determination and creativity that together we can bring to responsibly support effective minority- and women-owned small businesses and to help them solidify their finances, develop strong banking relationships and provide vital help to grow their businesses on the way up.”
The announcement follows City National's $11 billion, five-year community reinvestment commitment that was announced in May.
Over the next five years, the $32 billion-asset City National expects to put:
- $4.2 billion into small-business loans;
- $4.4 billion into qualified Community Reinvestment Act community-development loans;
- $1.6 billion into qualified CRA investments;
- $700 million into residential mortgage loans for minority borrowers;
- More than $80 million in supplier expenditures with minority- and women-owned businesses; and
- $30 million into charitable contributions.