Beneficial State Bank Reports $762 Million in Mission-Aligned Loans in 2021
Jul 21, 2022
Beneficial State Bank, a mission-driven community bank serving California, Oregon, and Washington, supported people and planet with $762 million in mission-aligned loans in 2021 that went toward affordable housing, environmental sustainability, fair auto loans, and more
July 21, 2022, Oakland, Calif. – Beneficial State Bank today released its 2021 Impact Report highlighting how it used its values-aligned lending practices and principles to support businesses and organizations with $762 million in loans—including $286 million in affordable housing loans, $201 million in loans to nonprofits, $94 million in loans tackling environmental sustainability, and $65 million in loans to 304 small businesses. In 2021, the bank was also awarded mission-aligned funds from the U.S. Treasury that will help grow its lending and other financial services in marginalized communities by up to threefold.
“Beneficial State Bank’s mission is to practice beneficial banking, in harmony with nature, to help more people, and help people more. To achieve this, we practice a new way of banking: one that invests in social justice, financial equity, and environmental wellbeing, all while remaining financially sustainable,” said Beneficial State Bank CEO Randell Leach. “I am proud of our team for achieving amazing results in 2021 and demonstrating that socially responsible banking isn’t just possible, it’s essential to a sustainable and inclusive economy.”
Providing Access to Affordable Housing
As communities across the bank’s footprint have some of the highest levels of housing insecurity in the nation, Beneficial State uses its ability to find and fund solutions for affordable housing access, including participating in housing loan programs. As of December 2021, the bank provided $286 million in loans to mission-aligned affordable housing. As a result, the bank supported over 8,733 affordable housing units.
Contributing to Environmental Sustainability
Beneficial State Bank uses its lending power to fund clean, renewable energy and the broader environmental sustainability sector. As of December 2021, the bank has $94 million in loans outstanding to the environmental sustainability sector and $144 million to the renewable energy sector, resulting in 688 megawatt hours of renewable energy produced. Through its Clean Vehicle Assistance Program, Beneficial State Foundation (one of the primary equity owners of Beneficial State Bank) awarded $22 million in grants to increase access to electric and hybrid vehicles for income-qualified Californians.
Beneficial State also commits to measuring and decreasing its own carbon footprint; the bank was included on the Real Leaders Eco Innovation Awards Top 50 list for its use of the Partnership for Carbon Accounting Financials methodology to measure and disclose the carbon footprint of its loans so that it can set emissions reduction targets and achieve a net-zero portfolio.
Supporting Small Businesses
Beneficial State Bank aims to help break down barriers to growth and operating capital for community businesses. In 2020, the bank delivered nearly $200 million in Paycheck Protection Program (PPP) loans to over 1,000 small businesses, outperforming other institutions of similar size. In 2021, it supported 778 organizations through Round 2 of PPP, deploying $93 million. We also worked with our clients to process their loan forgiveness applications, resulting in 98% of loans forgiven by December 2021.
Beneficial State Bank is committed to financially supporting its nonprofit clients. The bank provided $201 million in loans to over 250 nonprofits, amounting to 25% of its total loan dollars for the year.
Addressing Systemic Racism and Empowering Communities
The bank aims to alleviate the financial hardships suffered disproportionately by communities of color due to centuries of systemic racism by offering products that promote financial security and increasing access to fair and transparent financing for all its customers.
This includes immigrant communities. Beneficial State Bank lends to customers with Individual Taxpayer Identification Numbers (ITINs) and California’s AB 60 driver’s licenses, which can be obtained without proof of legal status. In 2021, Beneficial State Bank continued to leverage Vantage Scores, which expands the data available for immigrants who do not have a U.S. credit history.
The bank also offers two unique products with a direct impact on marginalized community members: Interest on Lawyer Trust Accounts (IOLTAs), where the interest earned is distributed to provide legal services to especially vulnerable people, and Individual Development Accounts (IDAs), which are special-purpose savings accounts that help people build financial stability by earning matching funds from federal, state, and/or charitable organizations. In 2021, the bank supported 68 IOLTA accounts totaling over $15 million, and 884 IDA savers with $204,911 saved in total.
“Since our inception, Beneficial State has demonstrated that a triple-bottom-line model can generate positive outcomes for racial and social justice, environmental sustainability, and financial stability,” Leach said. “We are excited to continue this important work, empowering the communities we serve while making strides to change the entire banking industry for the better.”
About Beneficial State Bank
Beneficial State Bank (Beneficial State) is a state-chartered, federally insured bank with branches in California, Oregon and Washington. Beneficial State serves the triple bottom line of people, planet, and prosperity for all. The bank’s unique ownership structure supports these strategic priorities. The bank’s capital is majority-owned by the U.S. Treasury and nonprofit Beneficial State Foundation, both of which are permanently governed in the public interest.
Beneficial State Bank is a founding signatory of the UN’s Principles for Responsible Banking, a member of the Global Alliance for Banking on Values, a member of Bank.Green’s Fossil Free Banking Alliance, a Community Development Financial Institution (CDFI), and one of the world’s top-rated Certified B Corporations, awarded B Corp "Best for the World" status every year since 2013. Member FDIC Insured, Equal Housing Lender.
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