FIB In the Community
First Independence Bank Tapped Again as a Participatory Lender for Loan Re-Opening Program to Support Small Businesses
Small Business Administration Officially Announces Paycheck Protection Program Re-Opening with New Guidance Issued
DETROIT – (January 11, 2021) – First Independence Bank is tapped to be one of the CDFI’s to service loans for the U.S. Small Business Administration (SBA) and U.S. Treasury Department’s Expansion/Revision to Paycheck Protection Program (PPP) Loans with a particular focus on small businesses. The SBA/Treasury has defined eligible CFIs as Treasury-certified Community Development Financial Institutions, FDIC-designated Minority Depository Institutions, Certified Development Corporations, and certain non-profit or governmental microloan intermediaries.
Late Friday, the U.S. Small Business Administration (SBA), in consultation with the Treasury Department made an announcement that the Paycheck Protection Program (PPP) will re-open during the week of January 11 for new borrowers and existing PPP borrowers and certain existing PPP borrowers. To promote access to capital, initially only community financial institutions will be able to make First Draw PPP Loans (first time applicants) on Monday, January 11, and Second Draw PPP Loans (those who received PPP loans back in 2020) on Wednesday, January 13. The PPP will open to all participating lenders shortly thereafter.
Updated PPP guidance outlining Program changes to enhance its effectiveness and accessibility was released on January 6th in accordance with the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act.
According to the SBA, this round of the PPP continues to prioritize millions of Americans employed by small businesses by authorizing up to $284 billion toward job retention and certain other expenses through March 31, 2021, and by allowing certain existing PPP borrowers to apply for a Second Draw PPP Loan.
This PPP program intends to reach two audiences:
1. Those who did not participate in PPP in 2020. The term used is First Draw-FD.
2. Those who received PPP in 2020 and still qualify (under the 2021 guidelines) for PPP. The term used is Second Draw-SD.
“First Independence Bank is proud to serve again as a participatory CDFI lender for the SBA’s and US Treasury’s PPP loan to further provide assistance to the much-needed bedrock of our country’s economic engine, our small businesses,” says Kenneth Kelly, Chairman & CEO, First Independence Bank. “The re-opening of this PPP loan with new guidelines and initial implementation places particular focus on small businesses who did not get to participate in 2020. It will benefit those who need additional support but intends to reach many small businesses (who will for the first time) obtain relief to help sustain their business. Based on the Associated Press’ assessment of the first two rounds, many minority businesses were left out and I am hopeful that this round changes those statistics” said Kelly.
The SBA has updated the PPP Borrower application (Form 2483) with the new PPP loan requirements and added demographic information at the end of the form. The second draw application for borrowers is also provided (Form 2483-SD). This application should only be used for those borrowers who have previously obtained a PPP loan. Lender applications, for both new PPP loans (Form 2484), and second draw loans (Form 2484-SD) have been updated for your use.
Key PPP updates include:
o PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs;
o PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
o The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, destination marketing organizations, among other types of organizations;
o The PPP provides greater flexibility for seasonal employees;
o Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount; and
o Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan.
A borrower is generally eligible for a Second Draw PPP Loan if the borrower:
o Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
o Has no more than 300 employees; and
o Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
First Independence Bank will be assisting with PPP Loans in Round 3.
Detroit Headquartered First Independence Bank Chairman & CEO Kenneth Kelly Reflects During Bank’s 50th Anniversary
DETROIT – (May 12, 2020) – A group of more than two dozen prominent Detroit entrepreneurs, doctors, lawyers, educators and more saw a need to create economic stability within the community. The goal, to create a positive representation of economic opportunity and change to the Detroit community. With that vision, along with more than 2,000 investors, First Independence Bank was established.
The idea to create this financial institution was one of the positive outcomes that emerged shortly after the 1967 riots in Detroit, of one of our country’s most historic occurrences. The result of that collective strength has left a legacy that is still going strong today.
The institution opened its doors 50 years ago on May 14, 1970. In 1980, the late Grammy Award-winning music producer Don Davis transitioned from the music industry to business and purchased controlling interest in the bank. Davis served as chairman until his passing in 2014.
“Detroit has always had a culturally impactful history and the recognition of the bank reaching 50 years is another building block of our history,” says Kenneth Kelly, chairman & CEO. “This current COVID-19 global pandemic has demonstrated the need for our collective strength unlike any other time in history. It is with that spirit that we say thank you to our customers, and stakeholders for their unwavering support over the last 50 years, which provides the foundation for our future.”
First Independence Bank is noted as the eighth largest African American owned banking institution in the country. It also remains one of two banks headquartered in the City of Detroit, as well as the only African American‐owned bank headquartered in the State of Michigan.
First Independence Bank – Celebrating 50 Years Servicing Our Community 1970-2020
About First Independence Bank
First Independence Bank is the 8th largest African-American-controlled commercial bank in the United States. It offers a variety of high-quality banking services from managing accounts to personal loans, mortgages, consumer education and investments. First Independence bank has three locations and offers banking solutions online and digitally through its mobile app. Established in 1970, the bank continues to be a responsible leader, efficiently serving the financial needs of its community, its businesses and its customers nationwide. First Independence Bank is a member of FDIC and Equal Housing Lender.
Bank Enterprise Award
The Bank Enterprise Award (BEA) Program awards FDIC‐insured depository institutions for increasing their support of Community Development Financial Institutions (CDFIs) and advancing their community development activities in distressed communities. Over the past three years, BEA Program awardees have increased:
- Investments in certified CDFIs by $124.3 million;
- Loans and investments in distressed communities by $1.2 billion;
- Provision of financial services in distressed communities by $66.7 million.
First Independence Bank has been an award recipient for many of the last several years.
First Independence Bank Among First to Empower Young Professional Leaders – Establishes Millennial Advisory Board
DETROIT – (March 5, 2019) – First Independence Bank is creating an opportunity to empower the leaders of tomorrow by exposing them to corporate engagement and leadership development. The First Independence Bank Millennial Advisory Board, includes 13 Metro Detroit leaders selected from a long list of candidates, representing very diverse industries. First Independence has engaged the unique voice of the millennial generation which will help augment their skills and will contribute to the vision of the bank. “We will embrace their perspectives as we continue to grow and increase the financial capacity of these young advisory board members. It is their thought-leadership that will help us establish relevant products and services to meet their need. Our focus on financial literacy is to help provide a foundation for these leaders,” says Kenneth Kelly, Chairman & CEO, First Independence Bank. “We are excited to be a leading institution here in Michigan to incorporate a Millennial Advisory Board.” Kelly notes that millennials are unique in how they bank, spend, and make purchasing decisions. The bank, which has been headquartered and serving Metro Detroit for over 48 years, took notice of this trend and saw an opportunity to educate and empower this customer base in a new and more inclusive way. The newly-created advisory board will focus on understanding the unique needs of millennials, developing leadership skills and recognizing results-oriented outcomes to strengthen financial decision-making. The advisory board will receive financial mentor-ship and business acumen to strengthen their personal and career development.
3ON3 in the D Youth Basketball Clinic & Tournament
DETROIT – (June 7-9 2019) – First Independence Bank was a proud sponsor of the clinic and tournament. The youth had a great time and were very serious. All teams played hard and deserved their trophies. Littlefield Pistons Commemorative Book Slideshow.
DETROIT – (September 30 2019) – We believe it’s essential to not only #giveback to our communities but to also become immersed in serving within them. That’s exactly what our team did today! Our team volunteered for Life Remodeled, a Detroit non-profit organization that exists to remodel lives – one neighborhood at a time! We had a great time learning more about their work as well as helping to clean their headquarters for businesses that will soon be located in their beautiful space. We cannot thank their team enough for the opportunity to be a part of their life-changing work!