County Funds Black-Owned Bank’s Capital Campaign

Columbia Savings & Loan Association. Photo by Graham Kilmer.

Milwaukee County is going to help a Black-owned bank raise funds for a homeownership drive.

Columbia Savings & Loan Association, 2020 W. Fond du Lac Ave., is celebrating its 100th anniversary and attempting to raise $10 million to loan to 100 homebuyers. The bank is calling the capital campaign “100 by the 100th.”

Milwaukee County Treasurer David Cullen plans to deposit $250,000 in the bank. Board Chairwoman Marcelia Nicholson has drafted a resolution that would give the action the full support of the Milwaukee County Board of Supervisors, as the board does not have authority over the county’s investment strategy.

“This initiative closely aligns with Milwaukee County’s objective of increasing home ownership and access to capital,” Nicholson said during the board’s Finance Committee meeting Thursday.

The deposit could make more money if invested elsewhere, but his office worked out a “reasonable interest rate” with the bank leaders for the county’s deposit, Cullen said.

“We invest hundreds of millions of dollars in Milwaukee County,” Cullen said. “So this is not a huge piece of it, but it is a huge piece in helping a small business become a bigger part of our community, and show that Milwaukee County does want to put actions behind its words.”

Under County Executive David Crowley, Milwaukee County has committed to a strategic plan to make Milwaukee the healthiest county in the state by achieving racial equity. A major piece of the effort has been a focus on housing: increasing affordable housing options and supporting new homeownership.

“As a designated minority depository institution… Columbia Savings & Loan offers a secure avenue for investing public funds, upholding the county’s commitment to financial responsibility, while simultaneously advancing our values,” Nicholson said.

Columbia Savings & Loan is a “valued community institution,” Sup. Willie Johnson, Jr. said. He added that “opportunity costs should be eschewed” in favor of supporting such a longstanding local institution.

Sup. Shawn Rolland said he saw the deposit as an opportunity to provide backing for a minority-owned bank and to push back on the racial wealth gap that “shapes our communities.”

Ernest Jones, CEO and chairman, thanked Nicholson for advocating for the bank and said the county’s investment with the bank “sets a powerful example for other governing bodies to follow.”

“This decision underscores the significance of investing in financial institutions that are committed to fostering economic growth and stability in our communities,” Jones said, “particularly those that have historically been underserved and overlooked.”

The county is not the only institution choosing to make a deposit with the bank. The Republican National Convention host committee, a local nonprofit, deposited $100,000 last November.