Thomas MacMillan Photo
Rawlings (center) with bank veeps Paul McCraven, Frank Polino.
The day after a merger between New Alliance bank and Buffalo-based First Niagara was announced, NAACP President James Rawlings paid a visit to see what the lender would do for its new local community. That meeting paid off Thursday, as Rawlings helped hoist a massive check representing an investment of over $7 million in tackling social challenges.
The check represents First Niagara’s investment in several programs — from housing assistance to small business loans — designed to support people in low-income areas of New Haven.
Rawlings and First Niagara officials announced the investment and laid out the way the two organizations are working together at a Thursday morning press conference at the Whalley Avenue headquarters of the Greater New Haven branch of the NAACP.
In a controversial move, First Niagara took over New Alliance bank this spring, marking the end of New Haven’s hometown bank. As soon as the news of the planned merger broke last summer, Rawlings contacted First Niagara to talk about what the deal would mean for New Haven neighborhoods, said Frank Polino, an executive vice president at First Niagara.
First Niagara eventually pledged $1 billion in Community Reinvestment Act lending statewide during its first five years in Connecticut. The $7 million novelty check presented Thursday is part of that pledge.
The NAACP won’t actually receive a real version of that check. Rather, it represents the money the bank promises to invest in the city. (Another $500,000 not represented by the check is going to Gateway Community College.)
“We take our role as a corporate citizen seriously,” Polino said.
Paul McCraven, a senior vice president at First Niagara, broke down the package. He said the investment will go to four areas:
• Home Ownership Assistance, $1.5 million over five years. First Niagara will create an assistance program for low- and moderate-income homebuyers to receive no-interest loans of up to $10,000. The NAACP will serve as the “exclusive referral agency” for the loans.
• Small Business/Micro Loans, a $5.35 million “loan pool.” The bank will create a $4.35 million loan program for small businesses and a $1 million micro-loan pool aimed at companies in low- and moderatie-income areas. The micro-loans will be between $1,000 and $25,000.
• Gateway Community College, $528,000. First Niagara has pledged $500,000 to Gateway to help fund its new building and library. The bank is also funding an NAACP scholarship program for the college at $3,500 per year for four students for two years.
• NAACP Administrative Support, $150,000 over three years. First Niagara will give the NAACP three grants of $50,000 to support its programs. Rawlings said the organization hasn’t decided yet what that money will go toward.
“This is really about hope,” Rawlings said. He said the partnership between NAACP and First Niagara is a “tremendous model” for addressing the “root causes” of urban problems.
“This is the most significant thing we’ve done on my watch,” he said.
“I want to thank you for building a bridge to hope,” said State Rep. Pat Dillon (center-left in photo below).
