2021 CSBS Community Bank Case Study Competition Journal

2021 COMMUNITY BANK CASE STUDY COMPETITION

we can make the most difference in the lives of our customers and communities. 8 This statement went hand in hand with the views of the leaders of the Black Lives Matter movement in Little Rock who expressed that the minorities in the area did not feel comfortable going into the existing banks or could not access capital at those banks. In response to this barrier, Mr. Williams and the other leaders of SBB decided to support the creation of the Little Rock Minority Business Empowerment Fund by making the first $1 million donation. The goal of this fund will be to make loans to Black and Brown businesses in Little Rock in a way where collateral and credit history requirements for the business may be flexible, so that business owners who would not be able to receive a loan from a traditional institution can pursue their entrepreneurial dreams. Southern Bancorp has two policy recommendations that it believes can support community banks in their efforts to address diversity, inclusion, and economic fairness. The first is that Arkansas should raise or ban asset limits on Temporary Assistance for Needy Families (TANF) food subsidies. The current policy in Arkansas is that a family that accumulates $2,250 or more in savings becomes ineligible to receive TANF food subsidies. For families who are receiving this subsidy, saving to that point is a disincentive because they lose their food subsidies. The argument against banning the asset limits is that there would be wealthy people who would abuse the subsidy when they do not need it and raise the cost of the program. SBB believes, however, that if the

Southern Bancorp has two policy recommendations that it believes can support community banks in their efforts to address diversity, inclusion, and economic fairness.

preparation. These services have historically been utilized disproportionally by women and minorities within Southern’s target area. Though Southern Bancorp Bank is already a proactive leader in the banking industry with respect to diversity, inclusion, and economic fairness, the recent protests related to social justice following the death of George Floyd have inspired SBB to do even more. Following the death of George Floyd, Mr. Williams released the following internal message to his team: The same pervasive systemic racism that has allowed many police departments and criminal justice systems across America to ignore the pleas of Black families who have long suffered from police brutality is also the root cause of many of the disparities we see among races in many facets of life, from education, to healthcare, to wages and wealth, and access to financial services. It is in these last areas, wages, wealth and access to financial services, where

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