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From YouTube: Committee on Finance 12-13-2021
Description
The Committee on Finance of the Council of the City of Philadelphia held a Public Hearing on Monday, December 13, 2021, at 10:00 AM to hear testimony on the following item:
210956 An Ordinance signifying the intention of the City of Philadelphia to organize the Philadelphia Public Financial Authority pursuant to authority established under state law, and amending Chapters 20 600 (“Standards of Conduct and Ethics”), 20 1200 (“Lobbying”), and 17 1400 (“Non Competitively Bid Contracts; Financial Assistance”) of The Philadelphia Code to address ethics, contractual and other requirements applicable to the Philadelphia Public Financial Authority, all under certain terms and conditions.
A
A
Here
we
are
now
live.
Thank
you,
modesto.
I'm
not
sure
how
much
of
the
beginning
was
captured
because
of
channel
64's
technical
challenges,
so
I
will
begin
as
I
started
earlier,
this
committee
on
finance
today's
monday
december
13th
regarding
bill
number
two,
one:
zero,
nine
five
six.
I
understand
that
state
law
currently
requires
that
the
final
announcement
be
made
at
the
beginning
of
every
remote
public
hearing
as
follows:
do
the
current
public
health
of
emergency
city
council
committees
are
currently
meeting
remotely?
A
We
are
using
microsoft
teams
to
make
these
remote
hearings
possible
instructions
for
how
the
public
may
view
and
offer
public
testimony
at
public
hearings
of
council
committees
are
included
in
the
public
hearing,
notices
that
are
published
in
the
daily
news,
inquirer
and
legal
intelligence
here
prior
to
the
hearings
and
can
also
be
found
on
phl
counsel
dot
com.
I
know
that
the
net
that
the
hour
has
come
to
begin
this
hearing.
Mr
news,
will
you
please
call
the
world
take
attendance
members
that
are
in
attendance?
F
G
A
I
am
president
good
morning,
thank
all
my
colleagues
for
being
here
for
this
finance
committee.
Hearing
a
qualifying
the
committee
is
present
in
the
hearings
now
called
to
order.
This
is
a
public
hearing
on
on
the
committee
of
the
committee
on
finance
regarding
bill
number
two
one:
zero,
nine
five
six,
mr
r
news
will
be.
Please
read
the
title
of
the
bill.
B
Bill
number
210956
an
ordinance
signifying
the
intention
of
the
city
of
philadelphia
to
organize
the
philadelphia
public
financial
authority
pursuant
to
authority
established
under
state
law
and
amending
chapters,
2600
standards
of
conduct
and
ethics,
20,
1200
lobbying
and
17
1400
non-competitively
bid
contracts,
financial
assistance
of
the
philadelphia
code
to
address
ethics,
contractual
and
other
requirements
applicable
to
the
philadelphia
public
financial
authority.
All
under
certain
terms
and
conditions.
A
Before
we
begin
to
hear
testimony
from
the
witnesses
we
have
here
for
today,
everyone
who
has
been
invited
to
the
meeting
to
testify
should
be
aware
that
this
public
meeting,
public
hearing
and
meeting
is
being
recorded,
because
the
hearing
is
public.
Participants
and
viewers
have
no
reasonable
expectation
of
privacy.
By
continuing
to
be
in
this
meeting,
you're
consenting
to
being
recorded
additionally
and
prior
to
recognizing
members
with
questions
or
comments
they
have
for
witnesses.
A
I
will
note
for
the
record
at
this
time
that
we
will
use
a
chat
speech
available
in
microsoft
teams
to
allow
members
to
signify
that
they
wish
to
be
recognized
in
in
order
to
comply
with
the
sunshine
act.
The
chat
feature
must
only
be
used
for
on
this
purpose.
As
we
begin
this
hearing,
I
just
want
to
take
a
few
moments
to
thank
all
of
the
various
parties.
Who've
helped
in
crafting
this
legislation.
A
So
many
communities
in
the
city
of
philadelphia,
especially
those
in
moderate
to
low
income
and
in
particular
black
and
brown
communities,
and
also
other
organizations
that
tried
to
provide
services
and
goods
to
citizens
in
the
city
of
philadelphia,
but
really
actually
had
a
real
difficulty
in
getting
access
to
credit.
Principally
cooperatives
as
well
as
non-profit
organizations,
especially
those
in
the
development
community.
A
So
from
this
initial
conversation
and
hearings
that
we
had
in
city
council
were
able
to
then
work
with
former
tech
staff
attorney
steve
masters
as
well,
students
and
fellow
school
government.
And
then
we
were
able
to
identify
some
resources
to
bring
in
a
national
consulting
group
hrna
that
helped
us
to
put
together
a
feasibility
study
for
this
idea
of
a
public
bank
in
the
city
of
philadelphia.
A
As
we
continue
to
move
forward
and
have
additional
conversations
and
meetings
and
discussions
regarding
this
idea,
we're
then
also
able
to
identify
dollars
through
our
budget
process
to
bring
outside
counsel
and
we're
represented
by
various
attorneys
from
holland
and
knight.
Llp
provide
invaluable
assistance
to
us,
as
we
continue
to
draft
the
bill.
That's
before
us
today.
A
And
so
so
many
people
who
are
on
this
call
from
vanessa
lowe
to
tim
brown,
to
beth
finn
to
all
the
various
individuals
who
are
here
really
helped
to
create
this
legislation.
So
this
has
been
a
collective
approach
with
a
lot
of
different
constituencies,
really
trying
to
address
a
very
complex
and
challenging
issue.
And
how
do
we
provide
opportunities
for
businesses,
especially
in
the
city
of
philadelphia,
as
well
as
other
organizations
to
give
them
an
ability
to
get
access
to
credit?
A
And
when
you
think
about
the
issues
we
are
dealing
with
in
the
city
of
philadelphia,
we
all
know
we
have
a
25
poverty
rate.
The
fact
that
we
have
an
african-american
and
latinx
population
of
44
and
15
percent,
but
only
six
percent
of
the
businesses
in
the
city
of
philadelphia
are
owned
by
african-americans,
and
only
four
percent
of
the
businesses
with
employees
in
the
city
of
philadelphia
are
owned
by
those
from
the
latinx
diaspora.
A
This
is
an
issue
that
is
important
and
also
ties
directly
into
the
unfortunate
other
stat
that
we
have,
which
is
525
homicides
in
the
city
of
philadelphia,
and
when
you
look
at
the
fact
that
we've
had
this
gun
violence
issue
in
our
city,
we've
had
a
significant
amount
of
poverty
in
our
city,
and
we
see
that
black
and
brown
community,
and
these
especially
from
the
business
perspective,
are
not
able
to
grow.
Anything
that
we
can
do
to
address
this
issue
and
provide
additional
opportunities
to
provide
access
to.
A
Credit
is
important
in
order
to
move
our
city
forward
and
when
we
think
about
the
opportunities
on
the
horizon
from
the
1.2
trillion
dollar
infrastructure
bill.
We
want
to
find
and
use
every
advantage
that
we
can
to
allow
those
businesses
to
be
able
to
participate
in
that
economic
development
opportunity
to
grow
jobs
in
the
city
of
philadelphia
to
help
us
address
all
the
issues
that
we
have
just
stated.
H
We
want
to
thank
the
bill
sponsor
for
identifying
an
important
issue
and
putting
forth
this
bill
to
move
conversation
on
that
issue
forward.
We
resoundingly
support
the
broad
policy
aims
in
the
bill,
particularly
the
focus
on
the
challenges
faced
by
black
and
latin
mexican
businesses,
who
are
denied
conventional
loans
and
seek
access
to
capitals
to
start
and
grow
businesses.
H
While
we
support
the
intent
of
the
bill,
we're
not
sure
how
we'll
address
those
important
issues
in
ways
that
existing
entities
cannot.
The
city,
for
example,
has
an
existing
authority
paid
npidc
that
already
resourced
and
offer
financial
services
and
resources
to
underserved
communities
across
the
city
paid
was
created
under
the
same
statute
and
created
the
same
powers
as
the
proposed
authority
we're
discussing
today
using
those
powers
paid
and
pidc
affiliates
carry
out
important
work
like
the
work
outlined
in
this
bill.
H
There
are
several
other
areas
where
the
intentions
on
the
bill
are
unclear,
including
the
following.
The
bill
authorizes
the
new
authority
to
issue
debt.
It's
unclear,
though,
what
revenues
would
be
used
to
repay
that
debt,
whether
those
debts
would
be
financial
obligations
in
the
city.
That
would
then
compete
with
other
priorities
of
the
city.
H
Without
this
additional
authorization,
the
authority
cannot
serve
as
a
city
depository,
a
sad
deposits
fund,
the
critical
operations
of
all
city
departments,
city
payroll
and
reserves
to
help
the
city
navigate
financial
crisis
such
as
government
19.
Those
funds
must
be
collateralized
to
limit
the
risk
and
ensure
they're
available
when
needed.
H
Trust
we'd
like
to
understand
better
how
that
work
is
coordinated
with
existing
entities
and,
finally,
the
bill
gives
the
authority
the
power
to
buy
and
sell
securities
and
property,
and
while
there
may
be
no
intention
to
do
that,
immediately
got
some
concerns
about
what
that
would
mean
what
kind
of
risk
that
would
create
in
the
future
for
the
authority
and
potentially
the
city.
So
we
hope
these
questions
help
further
the
conversation
about
how
the
best
to
achieve
the
goals
of
legislation
and
we're
available
to
answer
any
questions
you
may
have
thank.
A
H
A
A
Right,
but
we
also
have
a
number
of
entities
that
we
provide
resources
to
from
a
diverse
perspective
that
you
can
say
are
competing
for
dollars.
In
fact,
we
go
through
a
budget
process
every
spring,
where
you
can
say,
there's
a
competition
of
dollars
and
we
make
prioritization
and
decide
how
we
allocate
those
dollars
based
on
needs,
and
things
are
not
being
addressed
in
the
city.
H
If
you
agree
that
that's
an
essential
issue,
but
we
do
think
that
there
are
entities
that
are
empowered
to
address
those
issues,
and
we
also
think-
and
I
think
when
ann
evans
testifies-
we'll
talk
about
this
in
more
depth.
That
pdc
has
actually
shifted
its
focus
over
the
years
to
have
more
focus
on
on
the
very
issues
you're
talking
about,
but
even.
A
A
A
H
A
Right
and
and
and
basically
when
as
you've
known,
because
that
when
you
draft
legislation,
you
try
and
look
at
all
the
possibilities
where
entity
can
grow
into
the
future
as
well
as
partner
with
existing
entities,
because
we
don't
want
to
limit
the
building
of
entity
to
do
more
things
as
things
change
and
transition
into
the
future.
I
think
we
all
can
relate
the
fact
that
we're
actually
having
this
conversation
via
microsoft
teams
via
the
internet.
If
this
was
the
early
90s,
we
would
not
have
the
same
ability
to
do
so.
A
A
We
also
could
just
as
easily
say
that
they
could
partner
and
work
collaboratively
together
to
help
both
organizations,
as
well
as
credit
unions,
cdfis
and
other
institutions
that
are
trying
to
address
the
issue
of
access
to
credit
for
businesses,
especially
in
the
city
of
philadelphia.
Considering
this
has
been
historical,
systemic
issue
in
our
city.
G
Currently
I
am
the
on
the
executive
board
of
the
philadelphia
industrial
development
corporation,
which
is
the
primary
funding
for
small
businesses
intensified
in
philadelphia
and
having
those
experiences
I
can
tell
you
that
demand
far
exceeds
the
supply
of
for
capital
in
the
inner
city
in
philadelphia,
can
guarantee
that
granted
pidc
is
not
our
grandfather's
pidc
they're
doing
more
deeper
dives
into
black
and
brown
businesses.
I
am
proud
to
serve
on
that
board,
but
it
is
going
in
the
right
direction,
but
not
quick
enough
and
not
enough,
so
it
to
me.
G
The
argument
being
made
is
like
saying
why:
why
would
we
want
chick-fil-a
when
we
have
mcdonald's
well,
there's
there's
enough
demand
to
go
around
for
both
chick-fil-a
and
mcdonald's,
and
each
of
them
have
their
consumer
preferences
and
particular
areas
that
they
go
into
so,
depending
on
the
anatomy
of
what
this
public
financing
institution
will
be.
There
is
plenty
of
room
in
the
marketplace
in
my
opinion,
for
that.
G
I
think
whether
we're
talking
about
private
capital,
federal
capital,
state
capital,
that
we
are
at
a
point
in
our
society,
where
we
understand
the
need
for
more
sensitive
lending,
more
access
to
capital,
and
I
think
that
this
might
be
some
of
some
of
those
answers.
So
the
question
for
me
is
mr
deboe:
if
you
had
your
preference
of
how
you
would
structure
this
entity
trying
to
safeguard
and
minimize
risk
to
the
city,
how
would
how
would
you
recommend
that
we
look
at
this
this
future
entity?
G
So,
in
the
case
of
pcdc
and
pidc,
it
is,
it
is
a
hybrid
of
a
non-profit
where
you
have
board
members
that
act
as
board
members
to
kind
of
re,
examine,
reevaluate
and
look
at
the
performance
of
the
entity.
Do
you
recommend
what
what
type
of
structured
leadership
in
this
entity?
Would
you
recommend
or
feel
comfortable
with
so.
H
G
G
A
A
Annual
debt
expense
for
that
bond,
we're
in
the
process
of
evaluating
what
would
be
the
real
operational
capacity
for
this
new
entity
when
you
look
at
both
the
fed
up
green
capital
corporation,
as
well
as
the
accelerator
fund,
both
of
those
entities
started
with
about
two
million
dollars
in
initial
offering
dollars
which
gave
them
about
three
years
of
runway
to
get
their
organization
started.
But
from
a
capitalization
perspective.
G
I'd
be
interested,
mr
chair,
in
in
hearing
the
testimony
of
of
your
witnesses,
but
I'd
I'd
like
us
to
also
establish
what
is
acceptable
risk
if
we're
going
to
be
an
entity
that
is
as
conservative
as
some
of
the
banks,
you
know
kind
of
what's
the
point,
and
I
I'm
so.
I
need
some
insight
about
that
and
then
what
what
steps
we
will
take
and
and
consider
by
way
of
collateral
debt
to
equity
ratios
things
like
that,
so
that
we
can
understand.
G
You
know
how
how
we
can
be
of
more
assistance
that
it
does
not
presuppose
all
black
and
brown
businesses
have
poor
credit,
because
that
is
not
the
case.
But
what?
How
can
we
allow
for
a
earlier
entrance
into
small
business
than
traditional
lending
institutions?
Allow
so
I'll
be
listening
for
that.
Mr
chair
and.
A
Thank
you
councilman
jones,
and
you
know
we
spent
a
lot
of
time
getting
through
the
regulatory
challenges
getting
the
legislation.
This
point,
through
our
conversations
with
secretary,
vague
from
the
pennsylvania
department
of
banking
and
securities
and
his
staff
from
the
conversation
with
city
controller,
a
whole
host
of
others
and
we're
also
looking
at
the
capitalization
aspects
as
we
speak,
and
so
we're
working
through
that
the
goal
will
be
to
move
this
bill
out
of
the
finance
committee
hearing
to
define
committee
today,
and
then
we
will
have
the
calendar
for
next
year.
A
A
When
I
look
at
the
need
for
this
legislation
and
we
think
about
a
small
business
that
say,
has
a
250
000
line
of
credit
with
one
of
our
existing
cdfis
from
panata
invested
in
and
they
may
have
a
deposit
relation
with
our
existing
bank.
Let's
say
it
could
be
a
wells
fargo
or
a
santander,
or
maybe
even
a
credit
union
like
fit
out
federal
credit
union
and
now
because
of
the
infrastructure
bill.
This
business
now
needs
to
grow.
A
They
need
to
increase
their
cash
flow,
but
they
don't
have
a
lending
relationship
with
those
other
major
institutions.
They
just
have
a
deposit
relationship
with
the
cdfi,
where
they
have
a
lot
of
credit.
The
stdfi
may
not
be
able
to
do
online
or
loan
much
higher
than
what
they
currently
have,
so
they
ended
up
being
stuck
because
they
don't
have
the
friends
and
relatives
and
others
who
can
then
provide
the
guarantee
to
allow
them
to
get
a
larger
loan
with
that
large
institution.
A
Yes,
you
can
do
this
loan,
and
so
what
happens
is
that
a
lot
of
our
small
businesses
tend
to
stay
at
that
level
of
not
being
able
to
grow,
and
so
we
always
talk
about
what
is
either
the
eagle
stadium
or
phillies.
Or
now.
The
infrastructure
bill
would
provide
opportunities
to
black
and
brown
businesses.
So
they
may
get
the
opportunity
by
getting
that
bid
or
being
awarded
that
bid,
but
because
they
don't
have
the
ability
to
increase
their
lending
to
address
the
cash
flow
to
allow
them
to
hire
more
employees.
A
But
that's
not
just
for
black
and
brown
businesses.
We
have
other
hard
to
lend
to
entities
like
cooperatives,
where
you
have
multiple
people
that
own
that
organization,
but
not
one
person
is
providing
a
guarantee
to
enable
them
to
get
a
larger
loan
they're
trying
to
expand
or
are
affordable
housing
developers
who
may
not
have
a
long
asset
or
balance
sheet,
because
most
of
their
resources
are
tied
into
trying
to
do
development.
That's
why
I
see
this
entity
initially
trying
to
address
that
issue.
G
So,
mr
chairman,
I
want
to
just
listen
to
some
of
the
other
people
to
testify,
but
I
will
say
in
my
decade
of
work
at
pcdc,
one
of
the
programs
and
lending
products
that
I
was
most
proud
of
was
accounts,
receivable
financing
which
allowed
small
companies
to
take
advantage
of
city
contracts
by
providing
them
upfront
working
capital
secured
by
the
contract
with
the
city.
So
there
was
a
co-pay
on
the
contract
which
we
we
only
received.
G
We
only
we
had
less
than
one
percent
loss
in
that
we
have
one
person
who
forged
a
signature
on
a
copay
check
and-
and
you
know,
got
away
with
it
pretty
much
but
other
than
that
hundreds
of
financings
occurred
successfully
allowing
female
and
minority
businesses
to
partake
of
procurement
opportunities
with
the
city.
So
I'm
looking
forward
to
this
discussion,
mr
chairman,
thank
you.
E
Thank
you
very
much
chairman.
My
questions
are,
for
the
finance
director
rod
the
beau,
but
I
will
say
chairman
that
you
are
quite
knowledgeable
and
I
certainly
welcome
your
you
know.
You
know
comments
because
I
do
have
my
concerns
and
I'm
going
to
ask
a
couple
questions.
However,
I
will
also
say
that
I
appreciate
the
effort
that
you've
made
clearly
very
serious
efforts
in
in
addressing
this
problem
in
a
very
innovative
way.
E
The
the
issue
that
that
I
kind
of
look
at
is
the
fact
that
there
are
many
different
groups
of
people
in
our
city
and
in
our
country
that
have
self-lending
systems,
but
whether
it's
people
from
africa,
jamaica,
the
caribbean,
asia.
They
lend
money
to
themselves.
However,
they
eventually
run
into
a
limitation
and
they
need
a
commercial
loan.
E
The
problem
is,
they
were
not
able
to
many
times
because
they
didn't
have
a
language
ability
or
culture,
or
they
recently
got
here
or
they
just
started
this.
They
didn't
have
the
the
documentation
to
to
show
that
they
were
credit
worthy
and
so
a
bank
like
first
commercial
bank,
which
focused
on
that
market
and
other
markets
like
it
would
study
the
the
the
issue,
give
them
a
loan
which
is
typically
a
smaller
loan,
but
a
lot
more
than
they
could
get
from
a
money,
lending
club
or
or
group.
E
They
would
leave
the
small
bank
to
go
to
the
large
institution
because
the
interest
rates
were
were
lower,
and
so
you
know
the
the
issue
that
I'm
I'm
I'm
gonna
kind
of
focus
on
is
not
whether
this
is
a
like
a
worthy
effort
or
not.
It's
just
really
just
around
the
legalities
and
practicalities
of
a
municipal
banking
entity.
E
My
understanding
is
that
state
law
prohibits
the
city
from
establishing
a
bank
and
therefore
a
bank.
A
lending
type
authority
is
something
that
this
ordinance
is
looking
to
do
so
there
there
is
a
a
law,
and
you
were
talking
about
the
chairman.
You
were
talking
about
talking
to
the
secretary,
I
think
of
banking
and
I'm
sure
you've
spoken
to
others,
but
I'll
start
with
rob.
Deboe,
and
perhaps
you
know
if
he
doesn't
know
the
answer
you
could
answer
for
him.
E
A
A
Their
principal
concern
was
if
we
use
the
word
bank
in
the
language
of
this
legislation,
but
they
also
stated
that
they
would
be
willing
to
talk
about
the
issue
and
how
we
can
work
collectively
on
creating
a
bank
charter
for
the
purposes
of
this
goal.
So
we've
had
numerous
conversations
with
them
in
this
in
this
regard.
Regarding
legislation,
as
well
as
it
being
reviewed
both
by
the
city
law
department,
as
well
as
holland,
knight
or
outside
council,.
E
A
Well,
first
of
all,
this
is
an
entity.
It's
a
municipal
authority,
much
like
the
foot
of
energy
authority.
Much
like
we've
also
talked
about
pidc
and
paid,
which
also
are
quasi
entities
from
perspective.
They
are
joint
entities
of
both
the
city
as
well
as
the
greater
philadelphia
chamber
of
commerce.
So
the
fact
this
is
a
municipal
authority.
It's
a
separate
entity
than
the
city
of
philadelphia
itself.
A
It
doesn't
now
this
this
entity
would
not
be
doing
any
or
receiving
any
type
of
retail
deposits
or
deposits
from
commercial
customers.
It
would
be
similar
to
many
other
entities
within
the
commons
of
pennsylvania
that
have
been
empowered
by
economic
development
finance
law
to
provide
on
this
type
of
product
and
service.
A
So
what
from
a
capitalization
perspective,
we're
looking
at
a
couple
things
one
working
with
the
city
and
there's
various
ways?
We
could
look
at
that,
but
just
like
with
the
the
neighbor
preservation
initiative,
just
like
other
initiatives
that
we've
done
where
the
cities
help
provide
resources
or
even
with
the
the
accelerator
fund,
which
received
initial
capitalization
from
city
related
entities
as
well.
E
A
Actually,
it's
a
good
model.
I
mean
this
is
remember.
This
is
the
first
of
its
kind
in
the
commonwealth
of
pennsylvania
and
also
nation,
so
we're
looking
at
multiple
different
avenues,
so
the
bank
of
north
dakota
as
a
banker's
bank,
is
something
that
I
can
see
very
similar
in
rapid
to
what
we
do
with
this
entity.
A
Just
like
pidc
has
a
cdfi.
There
are
other
cdfis.
Some
of
those
entities
themselves
would
like
to
get
access
to
additional
credit,
but
they
may
not
be
able
to
do
so
as
well
so
having
an
entity
like
this,
this
philadelphia
public
financial
authority
could
also
provide
and
help
those
organizations
to
do
more
lending
as
well
and
partner
with
them.
That's
why
really?
The
goal
of
this
entity
is
to
partner
with
multiple
institutions
and
do
what
they
don't
do.
E
I
am
okay,
we
might
get
an
answer
from
you,
I'm
not
sure,
but
I
kind
of
don't
think
you
have
an
answer
for
this,
but
but
my
question
is
considering
the
the
a
kind
of
history
of
the
effort
of
of
public
banks
and
the
unsuccessful
history.
I
know
that
san
francisco
recently
conducted
a
study
of
public
banking
and
estimated
that
it
needed
an
investment
of
at
least
184
million
dollars
up
to
3.9
billion
to
operate
public
bank
is
is
that
is
that
a
concern
is.
E
A
Well-
and
you
know,
although
my
friends,
my
walt,
is
not
on
the
call
today,
because
it's
much
earlier
in
san
francisco
than
it
is
here-
but
san
francisco
and
philadelphia
much
different-
they
are
a
city,
that's
less
than
I
believe
900
000
residents
and
they
have
a
budget
about
9.9
billion
dollars.
City
put
off
is
a
1.6
million
resident
population.
With
a
budget
about
5.2
billion,
they
took
a
process
of
putting
together
a
commission
to
address
issues
in
san
francisco
and
addresses
idea,
public
banking.
A
I
have
not
had
a
chance
to
talk
with
supervisor
walton
on
the
various
details
of
their
public
bank
initiative
as
of
late,
I'm
not
sure
if
the
state
of
california
is
making
an
investment
into
on
that
public
bank
also,
they
may
be
doing
a
public
bank
that
may
provide
resources
for
those
outside
of
the
city
of
san
francisco.
They
have
not
drafted
their
legislation.
As
of
yet
they've
done
a
study.
A
So
we
had
to
craft
legislation
based
on
existing
laws
within
the
commonwealth.
Pennsylvania.
That's
why
we've
had
the
conversation
with
the
federal
reserve
of
philadelphia
or
secretary,
vague
or
jody
harris
who's,
the
head
of
the
cdfi
fund
for
the
u.s
treasury
or
people
at
dced
because
of
issues
and
concerns
to
put
something
that
fits
and
make
sense
for
the
city
of
philadelphia,
but
really
allows
us
to
really
address
the
issue
and
the
concern
which
is
providing
resources
to
direct
the
issue
of
the
lack
of
access
to
credit.
I
E
Seriousness,
I
will
say,
while
I
do
have
concerns,
I
certainly
have
been
like
very
impressed
chairman
with
your
thorough,
like
going
through
everything
talking
to
everybody
being
on
top
of
everything.
So
I
I
do.
I
do
feel
pretty
good
about.
You
know
your
explore
exploration
of
everything
and,
and-
and
so
I
I
too,
like
councilmember
jones,
I'm
going
to
sit
back
and
listen
and
and
see
what
else
is
is
brewing,
and
I
appreciate
all
your
hard
work
and
everybody's
work
as
well.
Thank
you.
A
Thank
you,
council
member,
oh
and
you
know,
as
someone
that
is,
spends
a
lot
of
time
on
lies
issues.
I
I'm
I'm
appreciative
of
the
questions
that
you're
raising
as
well
as
councilmember
jones,
because
we
do
need
to
kick
the
tires
and
ask
these
questions,
because
there
may
be
areas
that
I
or
others
of
this
team
may
have
not
thought
about,
and
I
appreciate
the
concerns
and
questions
I'm
raised
by
our
finest
director
dubo
as
well
to
make
sure
that
we
have
the
best
product
that
addresses
the
issues
and
concerns
for
the
citizens.
D
Thank
you,
mr
chairman.
I
want
to
start
off
by
thanking
thanking
you,
chairman
greene,
and
the
co-sponsors
of
this
bill
for
really
bringing
this
important
conversation
about
how
we
support
our
current
and
future
black
and
brown
business
owners
in
the
city
of
philadelphia,
we're
at
the
bottom
of
black
and
brown
business
formation
on
the
east
coast,
the
bottom,
and
we
need
to
do
something
about
it,
and
so
this
is
a
good
start.
I've
spent
a
good
deal
of
my
time.
D
You
know
talking
with
minority
business
owners
over
the
years
about
how
we
can
make
it
easier
for
them
to
like
start
and
grow
their
business
in
our
city.
Access
to
capital
is
always
in
the
top
three
list,
as
we
know
it,
and
it's
probably
due
to
issues
of
systemic
racism
in
many
markets,
including
the
banking
industry,
but
because
of
decades
of
racist
practices.
D
Minority
business
owners
have
all
have
had
vast
differences
between
friends
and
family
lists
when
starting
a
business
and
looking
for
seed
funding.
So
I
very
much
appreciate
the
intent
of
this
legislation
and
all
it
seeks
to
do
especially
for
communities
of
color.
My
concerns
today
are
not
related
to
support
for
the
intent.
D
I
support
the
intent,
but
it's
with
regarding
the
details
for
how
we
implement
this
idea
of
a
financial
authority
so,
first
and
foremost,
because
I've
been
listening
now,
I
think
it's
important
for
us
to
distinguish
between
what
a
public
bank
is
and
does
versus
what
we're
discussing
today,
which
I
believe
is
a
financial
authority.
So
I'd
like
to
ask
the
finance
director,
or
you
chairman,
green,
to
put
on
the
record
those
differences,
so
the
general
public
understands
what
we're
talking
about
today.
Thank
you.
D
A
So
so
I
so
let
me
just
kind
of
take
everyone
through
the
path.
You
know
I
initially
talked
about
how
we
did
the
feasibilities
together
with
hrna
in
reference
to
how
do
we
craft
the
ability
to
address
this
issue,
so
the
first
step
was
looking
at
the
economic
development
finance
law
which
engine
that
was
used
to
you
know
create
so
many
other
economic
development
entities
we
talked
about
under
that
law.
It
allowed
us
to
provide
the
type
of
products
we're
talking
about
in
a
separate
municipal
authority
entity.
A
In
order
to
be
a
cdfi,
we
had
to
marry
two
different,
distinct
issues
under
the
economic
development
finance
law.
It
provides
certain
important
powers
that
are
required
on
the
commonwealth
pennsylvania.
In
order
to
be
a
cdfi,
you
have
to
demonstrate
separation
from
control
from
the
public
sector
and
that's
why
this
entity
in
the
legislation
has
two
different
boards.
We
have
the
corporate
board
and
then
the
corporate
board
once
it's
appointed,
they
will
then
appoint
a
policy
board.
Both
those
boards
have
to
have
certain
qualifications
and
by
drafting
it.
A
This
way
allows
us
to
not
only
qualify
on
the
economic
development
finance
law,
but
also
then
qualify
as
a
cdfi.
Now
the
third
step
would
be
from
the
conversation
we
had
with
the
department
of
banking
and
securities
of
how
this
entity
could
be
a
public
bank
in
order
to
just
receive
and
hold
deposits
from
the
city
of
philadelphia.
A
So
those
are
the
three
steps,
but
even
in
that
third
step
would
entail
us
having
to
receive
a
charter
from
the
commonwealth
of
pennsylvania,
as
well
as
address
some
of
the
collateralization
issues
that
require
under
state
law.
Some
of
the
issues
at
the
local
level
we
could
amend
by
legislation,
but
those
are
kind
of
the
three
steps
that
would
occur
in
this
process,
which
would
happen
over
the
period
of
time.
D
Robert
debell,
you
want
to
add
to
that,
or
are
you
good
with
that
analysis?
I'm
good
with
that
analysis?
How
about
sending
you
the
bill?
So
let
me
just
ask
a
question.
I
just
want
to
make
sure
I'm
clear.
It
sounds
like
it's,
not
it's,
not
a
public
bank.
Yet
it's
a
really
a
public
financial
authority
in
order
to
accomplish
the
goals,
but
you
couldn't
accomplish
them
initially
by
being
a
public
bank.
Is
that
accurate.
A
Well,
we
could
not
call
it
a
public
bank
based
on
language,
our
conversation,
department,
bank
and
securities,
because
the
engine
does
not
have
a
bank
charter
and
there's
a
process
to
do
that.
In
our
conversation
with
the
staff
department,
banking
and
securities,
they
stated
very
specifically
why
we
could
not
use
the
term,
but
also
was
very
encouraging
on
how
we
could
work
in
that
process.
In
that
regard,
to
achieve
our
goals.
D
A
What
I
I've
talked
with
him
a
couple
different
times:
I've
known
him
pride
him
becoming
secretary.
He
also
has
a
banking
background
as
well
he's
very
knowledgeable
of
the
concern
we're
trying
to
address.
He
in
our
conversations.
Also,
you
know
defer
to
his
staff,
who
are
the
ones
who
are
the
the
technical
should
say,
are
the
experts
in
reference
to
both
the
banking
code
from
the
commonwealth
pennsylvania,
and
it
was
in
those
conversations
how
we
helped
to
craft
the
legislation
that's
before
us
today.
A
A
A
D
H
So
are
you
talking
about
specifically
if
the
federal
and
state
governments
allow
allow
us
to
take
deposits
from
the
city?
Yes,
yeah,
okay,
yeah,
so
the
concern
there
is
that
you
know
our
our
funds
are
really
for
specific
uses.
If
we
lose
money
for
example,
then
you
know
we
start
to
make
payroll.
We
still
have
to
pay
all
our
bills,
so
we
would
be
really
concerned
if
that
money
was
being
used
to
make
loans.
H
A
Plenty
of
information
we
currently
provide
city
deposits
to
institutions
that
also
do
lending
of
dollars
as
well.
So
the
concern
that
you
raise
could
also
be
mitigated
with
a
public
bank.
Just
like
a
citizens,
bank
or
santander
or
wells
fargo
have
had
city
deposits
that
are
segregated,
then
the
entity,
then
the
resource
they're,
using
for
other
type
of
products.
A
This
public
bank,
if
it
got
to
the
point
and
assuming
got
the
point
of
receiving
a
bank
charter,
would
be
no
different
than
wells,
fargo
and
santander,
where
certain
deposits
were
segregated
than
the
other
dollars
that
they
provided
and
be
quite
honest.
Those
dollars
are
not
necessarily
segregated
per
se,
because
often
dollars
are
in
us
a
sweep
or
a
sweep
account
without
them,
reinvested
overnight.
A
D
Okay,
thank
you,
chairman
green.
Is
it
possible?
We
can
get
a
formal
opinion
from
the
controller.
It
seems
to
me
to
be
important
to
get
an
opinion
from
her
certifying
the
our
debt
capacity
and
even
potentially,
because
she
sits
on-
I
guess,
the
pension
board
and
the
bond
committee
just
to
make
sure
that
she's
on
board
with
this.
A
I'm
not
aware
of
the
control's
office
issuing
a
formal
opinion,
like
the
law
department
does
to
his
delicious
opinion,
but
I
can,
you
know,
get
her
to
weigh
in,
but
I
think
you
know
based
on
the
legislation
is
drafted
and
you
know
we're
still
working
through
the
capitalization
perspective.
Maybe
both
can't
speak
for
her,
but
that
may
be
difficult
for
an
issue
opinion
and
in
a
form
that
I've
not
seen
issued
in
the
past.
But
we
can
ask
the
question:
okay,.
D
One
other
question
I
have
for
we
talked
about
this
yesterday
by
the
way.
Thank
you
for
your
time
yesterday
on
a
sunday
talking
about
this,
so
is
there?
Is
there
still
an
idea
out
there
that
we
could
go
to
our
16
largest
banks
and
utilize
them,
as
we
talked
yesterday,
to
maybe
be
a
funding
source
for
this
and
share
with
us
how
you
think
that
could
work,
because
that
would
really
limit
our
downside
by
using
their
money
to
do
this
lending
well.
A
That's
why
this
was
structured
as
a
cdfi
entity,
because
for
most
banks,
if
they're
not
getting
cra
credit
they're
going
to
use
that
for
they're
going
to
want
some
return
in
reference
to
that
investment
other
than
their
foundation
or
other
dynamics.
Traditionally,
banks
don't
make
those
type
of
major
investments
unless
one
is
being
is
being
going
through
their
foundation
where
they're
getting
some
type
of
benefit
from
that
end
or
getting
cra
credit.
And
so
that's
why
we
granted
this
from
a
cdfi
fund
perspective.
D
Right,
okay,
I
don't
have
any
further
questions
at
this
time.
I
thank
you
done
a
lot
of
work
on
this
and
I
appreciate
it
and
I
think
the
idea
is
good
and
I
think
we
just
have
to
make
sure
you
know
the
old
ben
franklin
comment
of
I'm
not
as
concerned
about
the
return
on
my
principle
as
I
am
concerned
about
the
return
of
my
principle
and
if
we
can
cover
that,
I
think
everybody's
going
to
be
good.
So
thank
you
very
much,
mr
chair.
A
B
Regina
harrison
president
and
ceo
of
the
african-american
chamber
of
commerce
of
pennsylvania,
new
jersey
and
delaware,
ambover
nevins,
president
of
philadelphia,
industrial
development,
corporation
leslie,
smallwood,
lewis,
co-owner
of
mosaic
development
partners,
llc
and
because
she
needs
to
leave
before
11
30.
I
believe
brit
alston
may
need
to
join
this
panel
as
well.
Mr
chair.
J
Historically,
access
to
affordable
credit
and
capital
has
been
and
remains
the
number
one
barrier
for
black
entrepreneurs
to
grow
their
businesses.
Business
owners
and
entrepreneurs
need
access
to
a
variety
of
credit
sources.
Short-Term
credit
matters
for
the
day-to-day
management
of
cash
flow,
while
long-term
credit
is
essential
for
capital
investments.
J
A
u.s
federal
reserve
study
found
that
black
entrepreneurs
were
denied
loans
nearly
twice
as
often
as
white
business
owners,
but
the
track
records
of
minority-owned
businesses
don't
support
the
reluctance
to
invest.
In
fact,
according
to
that
same
commerce
department
report,
minority-owned
businesses
drive
the
creation
of
well-paying
jobs,
service
anchors
in
their
communities
and
grow
faster
than
non-minority-owned
businesses.
J
Given
these
pre-existing
conditions
suffered
by
black-owned
businesses,
they
closed
at
a
faster
rate
in
2020
than
white-owned
businesses
and
were
last
in
line
to
receive
critical
ppp
loans
and
helped
that
helped
other
businesses
stay
afloat.
During
the
early
months
of
covet,
19.
black
and
brown
businesses
were
disproportionately
impacted
by
the
economic
crises.
J
Aacc
works
closely
with
the
city
of
philadelphia's
commerce,
department,
pidc
area,
community
development,
financial
institutions,
small
business
administration,
united
bank
and
other
london
institutions
to
ensure
black
owners
have
access
to
credit.
In
addition,
we
launched
a
coach
into
capital
program
to
help
solve
the
access
to
credit
and
capital
problem
that
was
highlighted
by
the
pandemic.
The
coach
into
capital
program
is
a
one-year
program
that
provides
members
with
hands-on
training
coaching
and
a
banker
advisor
to
prepare
members
to
access
commercial
lending.
J
This
program
is
in
collaboration
with
several
key
partners,
including
pidc
and
community
college
of
philadelphia.
Yet
our
efforts
are
still
not
enough.
Small
black
businesses
continue
to
fail
due
to
lack
of
access
to
credit
in
january
2020,
soul,
food,
restaurant
frannie,
nix
opened
its
doors
in
south
philadelphia
and
just
shy
of
one
year
and
of
her
one-year
anniversary
is
now
closed.
The
owner
has
been
unable
to
sustain
the
business
with
her
personal
savings.
She
did
not
quite
she
did
not
qualify
for
many
of
the
relief
funding
and
her
attempts
for
credit.
J
Approval
continue
to
be
denied.
Philadelphia
has
the
lowest
number
of
black
owned
businesses
per
capita
than
other
big
east
coast
cities
having
1.8
firms
per
1000
residents.
We
cannot
afford
to
lose
another
small
black-owned
business
due
to
the
lack
of
credit
or
lack
of
capital.
Aacc
supports
the
city
council
in
its
efforts
to
find
solutions
and
leverage
existing
partnerships
to
address
the
access
to
capital
bay
area.
Thank
you
for
the
opportunity
to
testify.
A
K
Yes
good
morning,
thank
you,
councilman,
derek
green,
I'm
here
to
testify
on
bill
number
two,
one:
zero,
nine
five,
six,
some
of
you,
I
hope
most
of
you
may
know
my
company
mosaic
development
partners,
we've
been
in
the
city
of
philadelphia
in
our
neighborhoods.
Our
office
is
located
in
strawberry
mansion.
We
are
a
boutique
real
estate
development,
firm
one
of
a
few
that
are
in
the
city
of
philadelphia
and
have
and
have
survived.
K
We
started
our
company
in
2008.
During
the
recession,
we've
been
able
to
see
ourselves
clear
through
a
pandemic,
but
all
in
all.
That
is
because
we
have
organizations
in
the
city
who
have
supported
our
company.
So
in
the
spirit
I
I
completely
support
this
bill
and
have
had
many
conversations
with
councilman
greene
about
what
the
intention
is
and
what
the
and
what
trying
to
support
black
and
brown
businesses
in
the
city.
K
K
But
I've
had
multiple
conversations
with
councilman
green
and
I
understand
he
is
trying
to
address
what
we
all
know
is
a
terrible
problem.
I
also
see
not
just
from
the
development
perspective,
but
in
most
of
our
projects
we
also
try
to
support
black
and
brown
businesses
and
they
struggle.
They
do
not
have
the
capital
they
don't.
They
need
the
assistance
with
startup
and
fit
out
of
their
spaces.
K
You
know
they
can't
get
loans,
so
it
is
an
everyday
struggle
which
then
bleeds
down
or
to
to
the
developer,
because
if
you
don't
have
strong
tenants,
then
it's
difficult
for
us
to
service
our
debt
service
for
the
project
itself.
So
it
is
a
domino
effect
and
one
that
needs
to
be
supported
throughout
for
all
of
us
to
be
able
to
not
just
survive
but
to
thrive.
K
So
one
of
the
things-
I
guess
there's
three
things
that
I've
talked
to:
commerce,
councilman,
greene,
pidc,
it's
lack
of
capital
and
that's
early
capital.
That's
the
higher
risk
capital,
but
we
don't
have
family
and
friends
where
most
of
our
counterparts,
majority
counterparts
have
those
relationships
that
can
build
them
up
and
give
them
that
strength
out
the
gate
to
be
able
to
bear
some
rough
times
and
go
after
you
know,
projects
and
be
able
to
feel
secure
and
have
a
net
that
they
can
rely
on.
K
You
know
as
they're
trying
to
build
their
company,
so
black
capital
is
a
critical
problem:
affordable
capital.
There
are
a
lot
of
organizations
that
are
in
place,
but
a
lot
of
the
cdfis
also
have
to
borrow
those
funds
so
once
they
actually
lend
it
to
us
as
the
as
the
either
the
tenant
or
the
developer.
K
It
is
at
a
higher
interest
rate
than
traditional
debt,
but
we're
not
of
we're
not
we're
not
capable
of
getting
traditional
debt.
So
this
is
absolutely
all
that
we
can
rely
on,
thankfully,
but
it
is
definitely
a
challenge
to
our
budgets,
because
we
are
now
competing
against
majority
firms
that
are
getting
loans.
You
know
at
four
percent
versus
you
know
six
or
seven
percent,
so
si
and
seed
capital.
Well,
I
think
I
mentioned
seed
capital,
but
the
other
thing
is
guarantees.
K
You
know
if
you're
going
and
you're
trying
to
build
a
relationship
with
a
traditional
bank,
you
have
to
have
the
strength
of
a
balance
sheet.
You
have
to
have
either
a
captive
guarantor.
You
have
to
have
collateral
that
enables
you
to
to
satisfy
the
requirements
for
such
lending,
and
typically
we
don't
have
that
it
takes
us
much
longer
to
build
our
company
to
build
our
balance
sheet
to
have
the
strength
to
actually
borrow
from
address
traditional
bank.
K
We
are
14
years
in
and
we
are
now
at
a
place
where
we
are
able
to
to
get
traditional
lending
from
a
bank,
but
that
actually
took
us
12
years
and
most
businesses
don't
survive
past
three
to
five.
So
we
are
one
of
the
few.
I
I
think
the
city
could
qualify
as
a
success
story,
but
it
has
been
a
challenge,
one
that
not
every
company
that's
coming
behind
us
should
have
this
the
same
challenge.
So
in
the
spirit
I
fully
support
it.
K
Obviously,
it
needs
to
be
completely
vetted
to
make
sure
that
it
does
not
injure
an
entity
like
pidc
who
has
been
out
there.
You
know
in
the
trenches
with
companies
that
look
like
ours,
but
if
there
is
a
way
for
it
to
be
collaborative
supportive
and
and
provide
more
expansive
resources
to
businesses.
Like
my
own,
I
would
love
to
see
something
like
this
to
to
move
forward.
F
Good
morning,
chair
green
and
members
of
the
finance
committee,
my
name
is
brittany,
alston
and
I'm
a
deputy
research
director
with
the
action
center
on
racing,
the
economy.
We
provide
research
to
grassroots
groups
at
the
intersection
of
wall,
street
accountability
and
racial
justice.
So
I'm
extremely
excited
to
be
talking
with
you
all
on
this
panel
today,
I'm
also
speaking
as
a
former
impact
analyst
at
a
community
development
financial
institution.
I
will
say
cdfi,
because
that
is
a
mouthful.
F
So
thank
you
for
for
holding
the
hearing.
I
would
like
to
just
walk
through
three
points
today
for
my
testimony,
one,
I
think
a
public
bank
in
its
final
form
for
the
city
would
present
a
public
alternative
to
big
banks.
Who's,
racist
and
predatory
practices
have
really
had
a
profound
impact
on
low-income
black
and
brown
residents
throughout
the
city.
F
F
So
big
banks
have
had
a
long
history
of
predatory
and
racist
policies
here
in
philadelphia.
In
september,
2016
wells
fargo
was
issued
a
combined
total
of
185
million
dollars
in
fines
for
creating
over
3.5
million
fraudulent
checking
and
savings
accounts
and
credit
cards
that
customers
never
authorize.
F
F
The
city
filed
a
suit
in
2017
against
wells
fargo
for
violating
the
fair
housing
act
by
taking
advantage
of
minority
borrowers
to
maximize
profits
and
more
recently,
the
city
has
been
engaged
in
an
anti-trust
lawsuit
against
seven
major
banks,
including
bank
of
america
and
wells
fargo,
for
conspiring
to
inflate
interest
rates
on
variable
rate
debt
costing
the
city's
billions
of
dollars
in
excess
fees.
This
amount
that's
paid
in
fees.
It
takes
away
from
citizens
ability
to
access
public
services
such
as
schools,
transportation
and
other
public
goods.
F
Financial
exclusion,
exploitation
and
racial
injustice
are
deeply
ingrained
in
the
country's
banking
system
and
its
institutions.
Public
banking
can
move
us
away
from
us
and
help
finance,
affordable
housing
cooperatives,
small
business,
education
initiatives
and
financial
services.
The
bank
can
prioritize
investment
in
communities
of
color
and
institutions
owned
or
controlled
by
members
of
the
actual
community,
because
the
responsibility
is
not
to
shareholders
but
to
the
public.
The
bank
has
the
opportunity
to
make
a
profound
impact
on
philadelphians.
F
A
public
bank
doesn't
return
profits
to
individual
stockholders
or
pay
out
of
touch
salaries
to
bank
execs.
The
revenue
return
to
the
revenue
can
return
to
the
city
and
fund
much
needed
community
development
and
infrastructure
projects.
Expanding
the
bank's
reach
in
philadelphia,
10
of
households
are
unbanked
and
22
are
under
bank.
This
is
more
than
state
and
national
averages
being
unbanked
or
underbanked
is
expensive
because
of
harsh
fees
such
as
payday
lending
or
even
overdraft
fees
in
traditional
banks,
fees
to
payday
lenders
and
check
cash
and
check
hashes
cost
households.
F
An
astonishing
173
billion
dollars
a
year,
but
even
traditional
banks
charge
steep
and
honoris
overdraft
fees
and
excess
activity,
fees
which
are
meant
to
actually
deter
small
accounts.
The
philadelphia
region
has
had
the
highest
average
of
overdraft
fees
or
excuse
me,
the
highest
average
overdraft
fee
among
the
25
largest
metropolitan
markets
in
the
country.
F
Small
accounts
are
not
profitable
for
banks,
and
so
they
avoid
offering
them
leaving
many
communities
and
what
some
analysts
call
banking
deserts.
A
public
bank
can
help
address
this
by
providing
accessible,
low-cost
banking
services
and
products
directly
or
in
partnership
with
community
financial
institutions.
F
This
bill
is
a
really
great
step
toward
a
chartered
bank
in
the
city.
Public
banks
can
hold
public
deposits
and
are
chartered
to
serve
the
public
good.
They
serve
as
a
powerful
tool
for
local
governments
to
address
local
needs
through
public
banking.
The
city
can
build
on
its
existing
relationships
with
cdfis
and
other
non-extracted
financial
institutions
to
expand
fair
banking
access
and
deepen
the
investment
in
affordable
housing,
small
and
worker-owned
businesses,
green
financing
and
other
needs,
and
the
example
of
the
bank
of
north
dakota.
F
F
Banks
can
or
excuse
me
public
banks
can
also
allow
cities
and
states
to
finance
critical
public
projects
at
much
lower
interest
rates
than
traditional
banks
on
the
bond
market.
It
would
also
allow
the
city
to
be
intentional
with
where
they
placed
their
money
once
capitalized,
the
city
could
move
their
funds
out
of
banks
that
engage
in
redlining
and
predatory
financial
practices,
fossil
fuel
financing,
real
estate
speculation
and
other
activities
that
harm
communities
specifically
low-income
black
and
brown
communities.
F
The
existence
of
a
public
bank
is
crucial
for
all
philadelphians.
A
public
bank
in
the
city
would
be
historic
and
it
would
give
us
an
opportunity
to
depart
from
the
traditional
banking
systems
that
have
proven
to
be
both
racist
and
extractive.
Thank
you
for
your
time
and
I'm
happy
to
answer
any
questions.
L
Thank
you
and
good
morning,
chairman
greene
and
members
of
the
finance
committee.
My
name
is
ann
beauvaird
nevins
and
I
serve
as
president
of
pidc
I'm
here
today
to
share
the
mission
and
vision
of
pidc
and
also
the
philadelphia
authority
for
industrial
development
or
paid
as
it
relates
to
build
number
210956
and
first
I
want
to
thank
and
recognize
council
members,
jones
and
johnson
for
their
dedicated
service
on
pidc's
board
of
directors.
L
Pidc
strongly
supports
the
community
investment
goals
of
this
bill
and
we
work
to
achieve
those
alongside
many
partners.
I'm
glad
to
be
here
today
with
regina
as
the
african-american
chamber
of
commerce
president
being
one
of
those
key
partners,
and
we
are
very
proud
to
be
supporting
the
chamber's
inaugural
coaching
to
capital
program
as
regina
had
referenced.
L
L
Pidc
and
its
affiliates
currently
represent
a
best
practice
in
community-based
economic
development
by
offering
a
broad
array
of
financing
and
real
estate
solutions,
together
with
supportive
business
services
targeted
to
philadelphia's
minority
women
and
low-income
communities,
to
borrow
a
phrase
from
our
pidc
board
member
councilman
jones.
We
are
not
the
same
pidc,
maybe
of
the
1980s
and
1990s
that
focused
primarily
around
larger
industrial
and
commercial
projects
at
that
time,
but
we
really
have
broadened
our
services
and
outreach
to
focus
and
better
meet
the
needs
of
small
businesses,
community-based
non-profit
organizations
and
neighborhood
development
projects.
L
I
also
mentioned
pidc
community
capital,
our
cdfi,
that
is
the
private
501c3
corporation,
which
is
certified
by
the
u.s
treasury
as
both
a
cdfi
and
a
cde
similar
to
some
of
the
discussion
today.
Pidc
pursued
these
certifications
specifically
to
obtain
additional
private
and
public
resources
as
a
catalyst
to
investing
in
underserved
communities
and
that
entity
pidc.
L
This
flexibility
includes
working
with
applicants
that
have
had
past
bankruptcies,
tax,
delinquencies
or
business
failures.
It
includes
working
with
businesses
that
have
had
negative
profits
or
under
collateralized
within
the
last
three
years,
which
is
very
different
than
typical
commercial
bank
lenders.
L
Another
example
of
the
ways
in
which
we
are
looking
beyond
the
impacts
of
the
pandemic,
but
focusing
on
the
wealth
creation
and
addressing
some
of
the
historic
gaps
in
particularly
around
racial
disparities,
is
through
our
commercial
mortgage
loan.
This
was
designed
specifically
to
help
small
businesses,
purchase
property
and
again
build
assets
leading
to
equity
and
wealth
creation.
L
An
example
of
that
in
the
fourth
council
district
is
the
development
of
a
new
office,
cryo
preservation
facility
and
safety
stock
warehouse
in
west
parkside
for
supra
msco,
which
is
a
black-owned
enterprise
where
pidc
was
able
to
both
sell
the
company,
the
land
for
that
development,
as
well
as
provide
financing
through
new
markets,
tax
credits
and
loans
and
as
leslie
smallwood
referenced
in
selecting
the
development
team
of
ensemble
mosaic
to
become
the
new
private
development
partner
at
the
navy
yard
last
year.
That
group's
commitment
to
diversity,
equity
and
inclusion.
L
Since
that
time,
ensemble
mosaic
has
launched
a
bold
commitment
to
dei
and
has
so
far
hired
20,
local
and
national
minority
women,
veteran
and
other
disadvantaged
owned
businesses
for
7.5
million
dollars
in
contracts,
totaling
50
percent
of
the
spend
for
the
design
phase
of
the
project
and
at
the
same
time
as
that
has
been
happening
at
the
navy
yard.
We've
also
launched
a
new
pilot
program
in
workforce
development
to
connect
un
and
underemployed
philadelphia
residents
with
quality
job
opportunities
at
the
navy
yard,
including
employers
like
four
seasons,
total
landscaping,
philly
shipyard
and
tasty
baking.
L
Now,
despite
these
efforts
and
those
of
our
partner
organizations,
I
fully
recognize
and
wholeheartedly
agree
that
major
and
unacceptable
gaps
and
disparities
still
exist,
particularly
for
bipac
owned
businesses
and
development
firms
and
for
communities
of
color.
We
have
to
do
more
and
we
have
to
do
better
and,
as
we
started
the
year
of
2021
pidc
made
a
strategic
commitment
to
deploying
our
resources
across
all
that
we
do
from
lending
to
real
estate
to
our
own
purchasing
power
in
ways
that
address
racial
inequity
and
poverty
in
philadelphia.
L
This
commitment
has
been
fully
embraced
by
our
staff
and
board
and
will
remain
a
critical
element
of
our
strategic
priorities.
Moving
forward,
pidc
is
excited
to
continue
its
long-standing
partnership
with
both
city
council
and
the
administration
to
continuously
identifying
the
areas
of
highest
need
and
innovate
to
create
the
tools
that
are
needed
for
investment.
L
We
hope
that
our
structure,
coupled
with
new
resources
from
the
public
and
private
sectors,
will
allow
us
to
continue
to
execute
on
that
mission
and
expand
and
increase
investment
in
communities
that
have
been
historically
denied
fair
and
equal
access
to
capital
and
services.
Thank
you
all
very
much
for
the
opportunity
to
testify
today.
A
L
Yep,
so
the
report
that
I've
got
in
terms
of
files
at
about
20
loans
and
the
reasons
range
from
the
length
of
time
that
the
business
has
been
open
and
operating.
So
that
is
something
where
pidc
typically
looks
to
support
businesses
that
have
been
in
existence
for
at
least
two
or
three
years.
If
we
don't
provide,
so
we
don't
typically
fund
startup
enterprises,
and
that
is
something
where
we
partner
currently
with
some
of
the
other
community
development
financial
institutions
that
are
in
our
marketplace,
to
be
able
to
serve
those
businesses.
L
That,
I
think,
is
a
big
part
of
why
it's
important
that
the
pennsylvania
cdfi
network
has
come
together
to
be
able
to
make
sure
that
there
is
a
continuum
of
capital.
Not
any
one
organization
will
likely
be
able
to
serve
the
needs
of
all
businesses,
but
if
we've
come
together
as
a
coalition,
then
there
should
always
be
you
know,
sort
of
a
a
right
door,
I'm
in
a
right
place
to
make
sure
that
each
business
seeking
capital
has
a
good
partner
to
you
know
to
work
with.
L
You
know
not
making
a
loan
that
there
doesn't
seem
to
be.
You
know,
based
on
a
lot
of
assessment
and
a
lot
of
hand-holding
and
a
lot
of
working.
You
know
kind
of
individually
with
the
business
an
opportunity
for
that
person
to
viably
pay.
The
loan
back.
You
know
that's
something
that
doesn't
put
them
in
a
good
position,
and
it
also
wouldn't
put
you
know
whether
it's
pidc
or
any.
You
know
organization
in
a
good
position.
But,
as
I
said,
you
know,
there's
a
lot
of
the
things
that
we
look
at.
L
We
look
past
bankruptcies
and
tax
delinquencies
and
past
business
failures,
and
you
know
if
the
historic
financials
don't
show
that
the
debt
service
coverage
can
work,
but
the
future
projections
do
show
that
it
can
work.
We
have
a
tremendous
amount,
you
know
more
flexibility
than
a
regulated
financial
institution
would
in
looking
at
that,
and
then
I
would
say
the
other
thing
that
we
really
do.
Is
you
know,
rather
than
turning
people
down
a
lot
of
times?
What
we
will
end
up
doing
is
just
sticking
with
a
business
and
working
with
them
until
they're
ready.
L
Gonna
approve
the
loan,
but
we
also
want
you
to
go
ahead
with
this.
You
know
this
clarify
entrepreneurship
or
credit
boot
camp
and
then
in
other
cases
we
might
say
why
don't
you
go
through
this
first
and
we're
gonna
walk
you
through
it
and
sort
of
stay
by
your
side.
You
know
through
this
time
and
then,
when
you're
done
with
that
program,
let's
reassess
and
let's
see
if
at
that
point
you
know
we
can
be
able
to
move
forward
with
the
loan.
D
And
I
guess
my
question
is:
I
was
on
a
board
of
a
bank
25
years
ago,
but
I
remember
being
drilled
into
my
head.
It
was
the
ability
to
pay
and
the
willingness
to
pay
for
the
key
ingredients
in
making
a
lot
of
loans
on
the
20
loans
that
were
denied.
Do
you
think
that
this
entity
that
we're
talking
about
could
have
been
helpful
to
those
20
businesses
that
did
not
get
loans.
L
Well,
I
think
in
some
I
mean
I
guess
it
sort
of
depends,
and
I
think
that
that
would
be
really
where
again,
it
would
almost
be
like
a
policy
decision
right
of
the
city
in
terms
of
how
you
know
kind
of
how
you
wanted
to
deploy
funds.
So
we
could-
and
I
would
be
happy
you
know
just
sort
of
work
through
this.
You
know
we
could
maybe
take
a
sampling
or
sort
of
you
know.
L
L
You
know
sometimes
the
business
you
know
again
and-
and
this
is
you
know,
this
is
very
much
tied
into
everything
that
you
just
heard
from
the
other
three
panelists
around
historic,
systemic
multi-generational
discrimination
that
has
led
to
lower
wealth
and
lower
access
to
friends
and
family.
You
know
type
of
capital
to
pick
up
on.
You
know
what
leslie
was
talking
about
where
a
business
owner
might
not
have.
You
know
the
access
to
the
early
stage,
capital
that
they
need
and
and
can
create,
that
cushion
for
the
business
in
tough
times.
L
L
You
know
additional
risk
taken
on
the
part
of
both
the
lender
and
the
borrower,
because
if
the
guarantee
is
structured
in
such
a
way
that
you
know
that's
the
first
thing
like
it's,
the
first
loss
money
and
you're,
not
you
know
going
to
look
to
the
borrower
to
you
know
to
repay.
I
mean
I
think
you
know
that
there
might
be.
L
You
know
some
challenges
with
you
know
with
that,
but
but
if
that
was
the
premise
that
was
sort
of
the
policy
decision-
and
this
was
looked
at
really
as
that
first
loss
capital
that
could
certainly
you
know,
make
a
difference
in
terms
of
having
you
know
a
pool
of
funds
to
be
able
to
draw
from
and
go
ahead,
and
you
know
do
additional.
You
know
additional
lending
again
if
it's
not
going
to
be
harmful
to
the
borrower
either.
L
Yep
that's
about
right,
so
we
usually
look
for
you
know
for
a
business
to
be
in
operation
for
two
years
and
again,
as
I
said,
we
work
with
a
network
of
the
cdfis
there's
actually
11
cdfis,
including
pidc
community
capital
that
operate
in
the
city
of
philadelphia
and
support,
small
business
lending
they're,
all
part
of
the
broader
pennsylvania
cdfi
network
and
within
that
network
of
11
philadelphia-based
cdfis
that
do
small
business
lending.
Quite
a
number
of
them
do
startups,
and
that
includes
also
some
of
the
lenders
that
use
the
sba
guarantee
programs.
D
I
guess
the
the
challenge,
I
think,
is
a
small
business
starting
out.
Let's
just
say,
they've
been
open
six
months
or
a
year
and
they
show
the
ability
to
pay
and
the
willingness
to
pay.
I
would
want
to
see
them
get
the
opportunity
to
lock
in
financing
at
today's
rates,
rather
than
have
to
wait
longer
when
the
rates
will
probably
move
up.
So
I
think
that
we
should
look
at
that,
because
to
me
today
is
the
opportune
time.
You
know
I've
been
around
a
long
time.
D
I
remember
when
interest
rates
hit
over
20
percent
today
they're.
What
are
they
at
three
percent?
So
we
can
get
that
locked
in
financing
for
some
of
those
businesses
in
general.
Now,
even
after
a
year
or
so
or
six
months,
waiting,
two
or
three
years
I
think
is
who
knows
where
rates
will
be
is-
and
I
think
that
makes
a
difference
with
the
business
borrowing
at
three
percent.
L
Absolutely
and
councilman-
actually
I
just
should
say
I-
I
just
got
a
message
from
a
couple
of
my
colleagues,
reminding
me
that
we've
actually
made
an
exception
to
that
with
our
restart
philadelphia
loan
program,
which
is
actually
a
zero
percent
interest
loan.
We're
able
to
do
zero
percent
interest
loans
with
this,
because
it
is
a
grant
funded
program.
So
we
were
able
to
successfully
secure
grant
resources
for
that.
So
we
can
both
because
it's
grant
funded,
we
can
take.
D
A
That
policy
board
for
intensive
purposes
would
be
like
the
lending
committee
that
you
see
in
traditional
banks
and
I
experienced
when
I
was
a
lender.
In
addition,
an
executive
director
will
be
hired
for
this
entity
as
well,
so
between
the
executive
director
and
the
staff
that
she
or
he
hires
and
the
policy
board.
There
will
be
entities
that
will
be
providing
the
decision
making,
as
well
as
the
day-to-day
operations.
D
A
Well,
I
mean
they're
two
different
entities.
Also,
you
know,
pidc
has
multiple
entities
as
part
of
and
pidc
is
a
joint
venture
between
the
city
of
philadelphia
and
the
greater
philadelphia
chamber
of
commerce
and,
as
I
stated
earlier,
we're
trying
to
help
pidc
and
other
cdfi
actually
do
more
lending
by
helping
to
mitigate
their
risk
so
that
we
don't
have
an
entity
doing
both
the
guarantees
and
the
actual
lending.
However,
I've
had
numerous
conversations
with
mit
nevins
as
well.
The
chair
of
her
board
sal
patty,
as
well
as
evelyn
smalls
who's.
A
Although
the
accelerated
fund
is
focusing
more
on
housing
development,
they
are
talking
through
a
collaboration
and
they're
working
through
that,
and
I
can
envision
the
same
perspective
in
reference
to
these
entities
and
other
entities
and
how
we
can
be
partners
with
them
and
help
them
do
even
more
work
and
free
up
their
dollars
to
do
more.
Direct
lending.
D
L
I
mean,
I
will
say
you
know
one
of
the
reasons
that
pidc
actually
created
the
cdfi,
which
dates
back
to
about
2013,
was
that
at
the
federal
level,
the
state
level
and
even
at
the
local
level,
support
financial
support
for
economic
development
and
small
business
growth
had
just
gone
down
and
down
and
down
and
down.
So
you
know
over
many
years
there
were
lots
of
different.
You
know
kind
of
programs
and
initiatives
that
brought
that
you
know
level
of
support.
L
A
Chairman,
thank
you.
Councilmember
dahm,
I'm
been
going
back
and
forth
my
phone,
because
one
of
our
colleagues
who
is
voice
challenged,
is
not
able
to
ask
questions
directly
so
I'll
make
sure
I'm
going
to
read
her
questions
for
you,
so
this
is
from
the
council.
Member
kim.
This
is
for
miss
nevins
if
you're
still
with
us.
A
Okay,
this
is
from
councilmember
again.
One
of
the
things
we
know
is
that
by
nature,
banking
lending
and
other
funding
systems
are
geared
against
bypass
and
low-income
individuals,
especially
in
emerging
fields.
One
of
the
reasons
for
this
is
because
the
deciding
board
reflects
existing
political
and
financial
interests,
rather
than
a
public
interest
that
seeks
to
counter
it.
A
L
So
we're
just
about
to
go
out
with
a
process
to
have
a
third
party
support
on
that
and
one
of
the
things
that
we've
done.
Even
you
know
before
going
out
to
solicit
the
services
of
you
know.
Finding
a
partner
to
work
with
us
on
the
updates
to
the
loan
policy
and
risk
rating
is
to
have
the
organization
that
we're
working
with,
which
is
a
firm
madison
advisors
led
by
christina
madison.
L
We
can
balance
that
out
with
looking
also
at
the
impact
and
making
that
decision
to
say
yes,
this
is
you
know.
This
is
something
that
that
we
should
move
ahead
and
with
our
restart
loans.
Specifically,
we
actually
changed
the
approval
structure
so
that
those
are
approved
just
at
the
loan
committee.
They
don't
require
any
further
approval
at
the
board
level
and
we're
able
to
you
know
do
that
for
a
couple
of
reasons.
L
One
it
just
helps,
you
know
make
things
move
faster,
just
one
less
step
in
the
process
at
a
time
when
we
knew
that
people
were,
you
know,
really
going
to
need
access
to
capital
as
quickly
as
we
could
provide
it,
and
so
those
are
some
examples
of
some
of
the
steps
that
we
are
taking.
But
it
is
absolutely
you
know,
continues
to
be
a
a
work
in
progress.
A
L
Yep
so,
as
I
mentioned
the
strategic
planning
process
that
we
are
going
through
with
madison
advisors,
that
is
really
a
a
big
component
of
what
we
are
working
on
with
them,
so
that
engagement
got
underway
in
october
of
this
year
and
it
really
focuses
around
our
existing
strategic
priorities.
One
of
those
is
to
demonstrate
leadership
and
take
a
leadership
role
in
an
equitable
economic
recovery
for
philadelphia,
and
the
other
is
what
I
mentioned
earlier
in
terms
of
deploying
pidc's
resources
in
ways
that
address
racial
inequity
and
poverty
in
philadelphia.
L
At
the
moment,
our
working
kind
of
theory
of
change-
and
this
is
really
what
we're
working
with
madison
advisors
to
you,
know
further
flesh
out
we're
going
to
have
stakeholder
engagement.
We
very
much
look
forward
to
engaging
with
city
council
for
your
perspectives
on
this
you'll
be
hearing
from
us
and
from
the
madison
advisors
team
soon.
But
the
working
theory
is
that
ways
to
do
that
are
focused
around
two
primary
areas,
one
being
to
focus
on
investing
in
small
businesses
in
ways
that
support
their
resilience
and
wealth
creation.
L
So
the
commercial
mortgage
lending
program
that
I
mentioned
is
part
of
that
as
a
new
product,
and
we
actually
saw
a
huge
uptick
in
the
beginning
of
2021.
There
was
really
a
lull
during
the
pandemic
in
terms
of
interest
in
that
commercial
mortgage
loan
product,
and
I
think
we
attributed
that
to
everybody
being
focused
on
kind
of
survival,
focusing
also
on
a
lot
of
accessing
a
lot
of
the
relief
grants
and
those
types
of
programs.
L
But
we
really
saw
huge
interest,
come
back
to
life
in
the
first
quarter
of
this
year
for
the
commercial
mortgage
program,
that's
something
that
we
think
has
tremendous
growth
potential
and
that's
actually
something
where
we
really
think
that
some
probably
small
amount
of
grant
dollars
could
make
a
really
big
difference.
So
if
we
had
grant
funding
that
we
could
help
a
business
fill
the
equity
capital
that
they
would
need
we're
typically
doing
like
90
financing
on
these.
L
You
know
again
much
less
conservative
than
you
know
what
a
bank
would
be,
but
you
know
there's
still
some
funding
that
we
would
expect
the
business
owner
to
be
coming
up
with,
and
I
think
that's
you
know
one
of
the
things
where
we
feel
like
we
could
do
even
more
if
there
were
some
grant
dollars
that
were
available
for
that
program.
So
that's
something
that
I
think
you
know.
L
Maybe
we
could
work
on
jointly,
but
the
commercial
mortgage
program
is
a
big
piece
of
that
in
terms
of
the
the
wealth
building-
and
I
mentioned
some
of
the
loans
earlier
in
terms
of
you-
know-
different
loans
across
the
the
various
council
districts
and
then
you
know,
another
piece
is
around
the
idea
of
quality
jobs.
So
that's
something
that
you
know
we
are
really
looking
at.
L
How
do
we
be
more
intentional
about
connecting
the
job
opportunities
that
are
created
through
some
of
the
investments
that
we're
making,
particularly
in
a
place
like
the
navy
yard,
where
we
have
a
special?
You
know,
role
in
in
that
development?
How
are
we
really
making
sure
that
those
job
opportunities
are
accessible
to
underemployed
philadelphians?
L
Where
we've
seen
primarily,
you
know,
jobs
in,
as
I
said,
landscaping
the
shipyard
and
now,
most
recently,
we've
been
recruiting
a
cohort
to
start
at
tasty
baking.
One
of
our
other
manufacturing
employers
is
going
to
be
launching
a
cohort
next
year,
we're
working
on
another
one
with
philly
shipyard,
and
we
hope
that
this
will
also
extend
into
some
of
the
healthcare
and
life
sciences,
employers
at
the
navy
yard
and
again
it's
only
for
philadelphia
residents
and
so
we're
connecting
people
who
are
on
and
underemployed
directly
to
employment
opportunities
and
we've
had.
L
L
Well,
there's
not
like
a
you
know,
sort
of
public
hearing
process
apart
from,
obviously
you
know
coming
and
and
participating
in
you
know
in
these
types
of
opportunities
to
engage.
You
know
with
you
and
other
council
members,
but
I
would
certainly
be
happy.
I
mean
this
is
something
again.
You
know:
we've
got
our
strategic
planning
process
that
we
are
getting
ready
to
initiate
our
stakeholder
engagement
hearing
from
counsel
and
hearing.
You
know
your
perspectives
about.
L
A
B
A
M
Okay,
my
name
is
ellen
brown,
I'm
chairman
of
the
public
banking
institute.
Thank
you
so
much
for
this
webinar.
It's
been
really
educational.
To
me,
I
mean
very
informative,
particularly
all
the
issues
you're
facing,
and
I
think
you
all
are
doing
a
great
job.
I'm
very
impressed,
I'm
not
sure
what
I
can
add,
except
as
a
sort
of
historical
overview,
maybe
to
inspire
you
why
this
work
is
very
important
philadelphia.
As
you
probably
know
it
was
the
birthplace
of
public
banking
in
the
country.
M
In
the
early
18th
century,
a
land
bank
was
formed
in
1693,
the
first
colonial
paper
script
was
issued,
so
the
colonies
were
issuing
paper
scripts
supposedly
as
an
advance
against
taxes,
but
it
was
a
lot
easier
to
issue
the
money
than
to
pull
it
back
in
taxes.
So
the
northern
colonies
were
over
issuing
and
hyperinflating
their
currencies.
So
pennsylvania
got
the
clever
idea
of
forming
a
bank,
so
they
would
issue
the
money
at
5
interest
which
at
that
time
was
a
very
good
interest
rate
to
the
farmers.
M
M
It
was
a
group
of
private
investors
who
lent
money
to
the
king
and
they
actually
issued
bank
notes.
This
was
a
year
after
the
american
colonists
first
issued
their
bank
notes,
so
they
issued
money
to
the
king
supposedly
backed
by
gold,
but
because
they
had
it,
they
knew
that
they
could
lend
ten
times
as
many
paper
notes
as
they
had
gold.
Basically,
ninety
percent
of
it
was
counterfeit,
so
it
was.
M
They
were
just
issuing
the
paper
currency,
they
issued
the
principal,
but
they
didn't
issue
the
interest
so
over
time
over
the
last
three
centuries,
we're
still
operating
basically
on
that
system,
and
this
is
largely
responsible
for
the
wealth
divide.
I
mean
you
can
imagine
if,
if
a
bank
is
issuing
as
much
or
taking
back
as
much
in
principle
as
it
issues
in
interest,
as
is
typical
like
for
a
housing
loan,
that
money
is
being
drained
off,
has
been
drained
off
for
over
three
centuries
into
the
financialized
markets,
away
from
the
real
productive
markets.
M
160
billion
dollars
in
interest
is
siphoned
off
annually
by
big
banks
and
bondholders
from
state
and
local
governments
in
the
u.s
today.
So
that's
a
huge
chunk
of
money
that
we
could
get
back
if
we
were
borrowing
from
our
own
banks
and
infrastructure
is
50
interest,
so
that
money
could
be
saved.
If
we
were
borrowing
from
our
own
banks,
we
only
have
one
publicly
owned
bank,
I'm
sure
you're,
a
state-owned
bank
that
would
be
the
bank
of
north
dakota,
but
they
have
definitely
approved
the
model.
M
They
are
only
allowed
to
lend
in
their
local
communities
and
because
of
this,
they
they
lend
for
productive
purposes
they
lend
to
their
businesses.
And
for
this
reason
they
are
very
productive.
They
are
have
as
large
as
nearly
as
large
of
an
export
business
as
china,
and
they
only
have
six
percent
of
the
chinese
population
so
and
they
attribute
this
to
their
banking
system,
their
local
banks
that
know
their
local
businesses
and
therefore
they
know
where
they
can.
They
don't
take
risks,
they
don't
actually
lose
money,
I
mean
they.
M
They
invest
in
good
businesses
and
it's
worked
out
very
well
for
them.
The
bank
of
north
dakota
in
2019
just
finished
16
years
of
record-breaking
profits,
averaging
20
return
on
investment
which,
according
to
the
wall
street
journal
in
2014,
they
were
actually
more
profitable
than
goldman
sachs
and
jp
morgan
chase.
Now,
how
did
they
do
it?
That
article
said
it
was
due
to
oil,
but
the
oil
market
crashed
that
very
year
and
it
you
know
it
never
really
came
back.
M
So
the
the
their
real
secret
of
success
is
their
banking
model,
they've
cut
out
the
middlemen
and
they
don't
have
high
paid.
You
know
they
don't
have
private
shareholders
who
are
demanding
short-term
profits.
They
don't
have
high-p
paid
ceos.
You
probably
know
this,
but
anyway
they
by
law,
all
of
the
state's
revenues
are
deposited
in
the
banks,
so
they
have
a
massive
deposit
banks.
They
don't
have
to
advertise
for
depositors
and
they
don't
advertise
for
borrowers.
M
They
partner
with
the
local
banks,
which
actually
engage
with
the
with
the
clients,
and
so
the
bank
of
north
dakota
just
helps
with
liquidity,
helps
with
capitalization
and
in
today's
environment.
They
help
with
regulatory
requirements
which
are
killing
the
local
banks,
so
they
actually
have
six
times
as
many
local
banks
per
capita
as
any
other
state,
largely
because
the
bank
of
north
dakota
helps
you
know,
partners
with
them
helps
them
out
with
all
those
requirements
they
made
more
pp.
M
Loan
payroll
protection
plan
loans
during
2020
than
any
other
state
per
capita
they've,
always
been
good
in
crises.
They
step
right
up
and
fund
where,
during
that
they
had
some
flood
where
they
would
do
mortgage
or,
I
think,
in
the
1930s
they
actually
did
mortgage
whatever
you
call
it
where
they
didn't
collect
on
the
mortgages.
In
other
words,
so
they
they
help
out
their
people
in
a
crisis.
So
it's
been
a
very
useful
tool
for
north
north
dakota.
M
So,
according
to
the
bank
of
england,
in
their
2014
quarterly
report,
banks
actually
create
our
money.
Supply
they've
been
creating
our
money
for
the
last
300
plus
years.
The
bank
of
england
said
they
actually
create
97
of
the
money
supply.
They
said,
contrary
to
popular
belief.
Banks
are
not
intermediaries
that
just
take
in
deposits
and
lend
them
out
again.
They
actually
create
deposits
when
they
make
loans.
So
this
is
a
power
that
we,
the
people,
need
to
get
back.
M
M
So
this
is
our
american
system
that
we
need
to
get
back
to.
We,
the
people,
should
be
in
charge
of
creating
our
own
money
and
that
money,
the
credit
should
be
directed
into
our
own
local
communities
and
it's
very
exciting,
to
us
to
see
philadelphia
doing
such
a
great
job
on
this
venture,
because
philadelphia
was
the
birthplace
of
the
whole
model
that
we're
talking
about.
So,
thank
you
very
much.
I
don't.
I
doubt
you
have
any
questions
for
me,
but
I'm
willing
to
take
and
answer
questions.
A
N
N
All
right,
so,
basically,
I'm
going
to
talk
about
the
what's
actually
in
your
in
your
accounts
right
now,
so
I
wanted
to
correct
one
statement
that
was
made
earlier
that
basically
that
there's
no,
that
there
might
be
a
competing
interest
in
the
money,
that's
already
in
deposit.
Actually,
that
doesn't
really
have
to
happen,
because
what
what
you
have
is
you
have
about
6.6
billion
in
liquid
assets
right
now,
and
so
you
don't
really
lend
that
out.
N
As
ellen
said,
money
is
created
when
it's
when
it's
made
into
a
loan,
so
that
money
is
not
really
lent
out,
and
so
actually
it
stays
in
your
account,
even
if
you
make,
even
if
the
bank
would
make
a
loan
on
it.
So
let
me
just
go
back
one
level
here.
So
basically,
I
went
through
the
comprehensive
annual
financial
reports
of
your
city
and
I
found
out
where
the
money
was
and
basically
figured
out
what
was
liquid
and
not.
N
You
know
fixed
capital,
which
we
can't
use,
obviously
for
a
bank,
and
so
what
I
wanted
to
talk
about
today
was
just
what
the
deposits
were
versus
the
capital,
and
so
you
have
two
kinds
of
investments
into
a
bank.
You
have
the
deposits
and
your
deposit
base
could
be
used,
as
the
bank
of
north
dakota
does
from
your
tax
revenues,
and
so
that's
a
very
reliable
source
of
money.
N
N
So
this
is
directly
from
the
report.
This
is
not
from
me.
This
is
right
there
in
the
actual
kaffir
from
last
year.
So
I
think
that
you
know
any
objective.
Analysis
would
show
that
this
is
actually
a
more
risky
portfolio
than
investing
part
of
that
money.
That's
in
this
case
from
the
pension
fund
directly
into
a
public
bank.
So
in
addition
to
that,
we've
got
foreign
currencies
which
can
have
all
kinds
of
political
repercussions
as
well
as
the
financial
risk.
N
N
So
we
propose
that
instead
of
or
in
place
of
some
of
the
these
investments,
you
would
use
the
pension
fund
as
a
way
of
capitalizing
the
bank.
You
know
to
provide
that
one-ninth
of
the
portfolio
that
can't
go
in
and
out
of
the
bank
that
has
to
be
placed
as
reserved
and
instead
you
would
use
the
the
city's
money
as
deposits,
and
this
way
the
city
does
not
actually
have
to
give
up
any
money
because
it
can
be
used
as
needs
require.
N
N
So
we
suggest
that
the
risk
that's
already
been
taken
by
philadelphia,
including
hedge
funds
and
and
other
things,
is
actually
greater
than
the
risk
from
a
public
bank
and
so
objectively.
We
should
be
doing
that
so
scott
stringer
who's,
our
comptroller
in
new
york
city,
actually
did
a
report
and
he
said
that
over
a
10-year
period
that
basically
the
fees
ate
up
all
the
returns
on
investment,
and
so
there
really
wasn't
any
investment.
N
It
wiped
out
2.5
billion
dollars
in
returns
just
because
of
the
fees
and,
as
you
saw
on
your
own
report,
that's
pretty
close
to
what
happens
in
philadelphia
as
well.
So
can
you
create
a
bank
according
to
your
pension
board,
the
fund
may
from
time
to
time,
make
investments
in
products
and
programs
other
than
traditional
stocks,
bonds
and
cash
equivalents.
N
So,
basically,
to
me
this
asks
a
question:
does
a
public
bank
fit
into
this
criteria?
So
if
you
could
create
a
public
bank,
could
the
pension
fund
invest
in
and
I
think
the
answer
is
yes,
but
of
course
you
have
to
run
it
through
your
own
pension
board
to
see
now
keep
in
mind
that
95
of
the
pension
fund
has
rolled
over,
it's
never
paid
to
pensioners
to
begin
with,
so
you
don't
if
it
was
you'd
quickly
run
out
of
pension
money.
So
that
kind
of
proves
a
point.
N
You
know
to
market
downturns
able
to
provide
consistent
returns
and
it's
supportive
of
local
community
and
job
creation,
and
everybody
has
already
agreed
that
there's
not
enough
money
to
support
the
black
and
brown
businesses
that
are
strapped
for
cash
right
now
and
can't
get
any
credit.
So
this
is
a
way
of
doing
that.
It's
fiduciary
responsible
if
it's
set
up
properly
to
to
pizza.
N
So
again,
the
usage
of
the
tax
revenues
is
predictable
throughout
the
year
and
these
conform,
the
deposit
base
for
making
loans.
So,
basically,
you
need
to
determine
how
much
money
you
have
and
whether
you
can
use
those
resources
for
investing
in
a
bank
and
well
I'll,
take
questions
now.
That's
that's
my
testimony
for
today.
A
O
Sure,
yes,
my
name
is
walt
mcrae,
I'm
a
chair,
emeritus
and
senior
advisor
to
the
public
banking
institute
and
president
of
public
banking
associates,
which
is
a
national
consultancy
of
banking
and
economic
experts
that
are
working
with
city
and
state
governments
to
get
their
own
public
banks
started.
I'm
very
pleased
to
have
this
opportunity.
O
Is
that
you
know
it's
a
relatively
new
thing
in
america,
but
there
are
900
public
banks
around
the
world
managing
about
50
trillion
dollars.
So,
while
america
is
just
kind
of
getting
with
it,
with
the
exception
of
philadelphia's
early
18th
century
experience,
you
know
we're
really
just
kind
of
getting
programmed
and
it's
very
exciting.
O
I
must
say
really
gratified
to
see
how
dedicated
and
informed
you
all
are
about
the
commitments
that
you
want
to
make
with
your
money
and
how
and
where
it's
falling
short
and
how
the
systems
need
to
be
improved.
I
think
many
of
many
times
we'll
hear
people
say
well
what
problem
are
you
trying
to
solve?
O
You
know
with
these
public
banks,
and
I
think,
basically,
that
comes
down
to
a
simple
question,
a
strategic
planning
question,
and
that
is:
does
the
city
or
the
state
want
to
be
forever
borrowing
its
money
for
investment
from
the
private
capital
markets
on
wall
street?
Or
do
you
want
to
take
the
opportunities
in
front
of
you
to
create
your
own
lending
mechanism,
which,
of
course
is
what
this
municipal
financial
authority
is
about
and
by
the
way
in
san
francisco
los
angeles,
even
even
even
in
new
jersey?
O
The
idea
of
having
an
interim
financing
vehicle
to
lead
toward
creating
a
full
bank
is
is,
is
well
considered
and
well
on
its
way
and
being
adopted
san
francisco,
looking
at
creating
a
municipal
financial
authority
and
process
as
well.
Scott
just
mentioned
actually
ellen
mentioned
that
the
problem
we're
trying
to
solve
is
an
obvious
systemic
disadvantage
that
cities
and
states
have
last
year,
wall
street
received
160
billion
dollars
from
cities
and
states
around
the
us.
O
Philadelphia
contributed
about
250
million
dollars
of
that
last
year,
and
of
course,
we
don't
want
to
forget
a
few
years
ago
that
we
spent
almost
half
a
cent,
almost
a
half,
a
billion
dollars
to
wall
street
that
came
out
of
our
taxpayers,
wallets
and
and
our
city
schools
for
those
interest
rate
swaps.
When
that
money
goes
to
wall
street,
it
leaves
town
for
good.
It
doesn't
stop
off
to
help
with
affordable
housing
or
it
doesn't
repair
any
deteriorating
infrastructure.
O
It
doesn't
help
local
entrepreneurs
of
color
minorities,
of
women
and
so
forth,
who
need
to
get
into
the
game.
Credit
is
the
lifeblood
of
any
economy
which,
by
the
way,
is
one
of
the
reasons
that
public
banks
around
the
world
have
demonstrated
themselves
to
be
one
of
the
greatest
economic
stabilizers
around
public
banks
lend
into
the
local
economy,
and
that
is
really
the
the
lifeblood
of
how
the
mechanics
work
so
the.
O
But
I
think
we
want
to
remember
that
these
interim
facilities,
like
this
financial
authority
talking
about
needs
to
be
shaped
around
the
understanding
that
you
are
ultimately
going
to
move
toward
having
a
chartered
bank
the
need
for
that
is,
or
the
opportunity
of
that
is
dramatic,
and
I
think
scott
just
mentioned
it.
You
have.
We
have
wonderful
agencies,
I'm
so
impressed
with,
with
ms
niven's
description
of
pidc's
involvement
with
local
lending.
How
cefi's
take
a
front
row
seat.
O
Now
you
just
can't
have
that
with
a
revolving
fund
or
even
a
development
group,
unless
you
have
that
special
privilege
of
being
a
bank.
So
that's
what
we
want
to
continue
to
focus
on
as
you
go
through
the
mechanisms
of
devising
a
philadelphia
financial
authority,
it
really
is
a
unique
opportunity
to
provide
investment
capital
and
to
direct
it
at
the
people's
will
and
with
transparency
and
accountability.
O
They
really
even
though
they're
they're,
smaller
than
the
private
banks
in
terms
of
assets
they've,
contributed
well
over
50
percent
of
the
money
to
create
renewable
energy
sources
and
so
forth.
Now
I
want
to
keep
in
mind
also
that,
in
moving
toward
a
bank
that
there
are
dynamic
is
underway
in
banking
around
the
world.
O
If
the
city
would
have
a
bank
to
deal
with
a
mechanism,
it
would
be
able
to
participate
in
leveraging
or
creating
digital
platforms
that
would
allow
facilitating
getting
credit
into
the
community
sectors
that
would
otherwise
not
have
been
available.
New
new
methodologies
are
emerging.
Having
a
bank
will
allow
you
to
take
advantage
of
that
or
enabling
it
so
before
they
make
any
more
noise
next
door
here.
O
A
Seeing
and
hearing
none
thank
you
all
for
your
testimony
providing
some
perspective
and
that
we
spent
a
lot
of
time
talking
about
the
public
bank
and
how
it
would
work
in
here
in
the
city
of
philadelphia.
But
your
testimony
really
provided
some
background.
Some
proper
background
and
perspective
on
the
context
of
what's
happening
around
the
country
in
reference
to
public
banking.
M
Chairman
green,
can,
can
I
add
one
thing
I
realized
I
left
out,
even
though,
even
though
banks
create
money
as
loans
with
the
problem,
of
course,
is
covering
the
withdrawals
when
the
depositors
or
the
borrowers
take
the
money
out.
So
banks
are
really
borrowers,
that's
what
they
do.
They
borrow
your
deposits
and
they
become
the
owner
of
the
money
and
you
become
a
creditor
of
the
bank.
M
So
if
they
ran
out
of
deposits
before
2008,
they
would
borrow
in
the
fed
funds
market
from
each
other,
so
they
borrowed
deposits
from
each
other,
but
that
market
collapsed
because
they
no
longer
trusted
each
other
after
2008.
So
they
resorted
to
the
repo
market.
That
market
collapsed
in
september
of
2019,
when
interest
rates
in
the
repo
market
went
to
10.
M
So
then,
in
the
spring
of
2020,
the
federal
reserve
set
up
new
safeguards
for
their
banks.
So
if
you
are
a
bank
they
set
up
as
well.
Actually,
it
was
the
summer
of
this
year
they
set
up
a
standard
standing
repo
facility
so
that
any
qualifying
bank
can
borrow
from
from
their
repo
facility
and
in
the
spring
of
2020
they
said
that
any
qualifying
bank
or
any
any
bank
in
good
standing,
in
other
words,
could
borrow
from
their
discount
window
at
0.25
percent
only
for
three
months.
M
But
it
also
says
that
these
loans
are
renewable.
It
says
renewable
daily,
so
it
looks
to
me
like
you
could
roll
over
the
loans.
So
it
seems
to
me
that
if
you
are
a
bank,
you
have
access
to
very
cheap
credit
at
the
moment.
I
know
there's
the
threat
that
they'll
raise
the
interest
rate,
but
even
if
they
raised
it
to
a
half
a
percent,
that's
still
incredibly
cheap
cheaper
than
you
could
get
credit
anywhere
else.
M
And
then
you
can
lend
it
on
to
your
customers,
since
you
have
fewer
costs
than
other
banks,
lend
it
on
to
your
customers
very
cheaply.
And
I'm
not.
It
seems
to
me
that
they're
kind
of
asking
for
trouble
if
they
do
raise
interest
rates
because
there's
something
like
a
50
trillion
dollar
debt
bomb
riding
on
that
I
mean
the
economy
will
collapse
if
they
do
raise
rates.
So
looks
to
me,
like
these
rates
are
going
to
be
low
for
a
long
time.
A
Thank
you.
Thank
you
for
the
additional
context
and
perspective
in
reference
to
the
complexities
and
dynamics
of
our
banking
system,
from
both
the
private,
as
well
as
the
federal
reserve
and
other
entities
that
enable
us
to
maintain
our
economy,
but
at
the
same
time,
can
be
very
challenging
in
that
regard.
A
At
this
point
we'll
have
mr
inuzi,
I
prepare
to
read
the
witnesses
for
the
next
test,
the
next
panel.
Thank
you
all
for
your
testimony.
Also,
as
mr
inusey
is
preparing
he's
going
to.
Let
members
of
the
committee
know
that
we
also
received
written
testimonies
supporting
the
this
initiative
from
amy
toy
policy
director
from
the
philadelphia
association
cdc's
dan
hoffman
is
a
resident,
and
also
we
received
testimony
from
the
president,
ceo
of
the
cross
state
credit
union
regarding
some
concerns.
B
Susan
wendell
facilitator
for
the
philadelphia
public
bank
coalition,
peter
winslow
who's,
a
member
of
the
philadelphia
public
banking
commission,
vanessa,
co-chair
of
the
economic
dignity,
team
of
power,
pamela
haynes,
a
member
of
the
philadelphia
public
banking
coalition,
greg
wins,
representative
of
philadelphia,
dsa
and
deb.
Feigar
is
professor
emeritus
of
economics
at
stockton,
university.
A
I
I
Our
coalition
is
a
group
of
philadelphia
residents
representing
various
organizations
and
networks
concerned
with
economic,
racial
and
environmental
justice
in
this
city.
Some
of
us
have
been
working
together
on
this
campaign,
since
the
first
national
conference
on
public
banking
here
in
philadelphia
in
2012..
I
Since
then,
we've
grown
in
number
and
strength
and
you'll
meet
a
few
of
us
very
shortly.
But
before
you
do,
I
want
to
take
this
time
to
publicly
acknowledge
and
thank
our
council
champion,
derek
green
on
behalf
of
all
of
us
for
the
persistently
collaborative
spirit
with
which
you
have
approached
the
creation
of
this
landmark
legislation.
I
He
brought
the
coalition,
along
with
him,
to
fashion
the
bill
and
to
build
public
awareness
about
this
concept
of
public
banking.
What
such
a
bank
could
do
for
our
city,
he
came
to
our
evening
meetings
whenever
needed
and
has
met
regularly
with
three
of
us.
My
calendar
says
at
least
twice
monthly,
since
maybe
this
time
last
year,
maybe
earlier
on
monday
afternoons
to
make
sure
that
the
ordinances
council
votes
into
law,
this
winter
will
lay
a
proper
foundation
for
the
kind
of
banking.
I
The
kind
of
fair,
just
and
equitable
lending
practices
that
the
people
in
the
precious
neighborhoods
of
our
city
so
desperately
need,
and
I
don't
have
to
tell
the
members
of
this
council
how
desperate
that
need
is
through
all
the
meetings
and
the
email
exchanges.
Councilmember
greene
has
listened
deeply
to
our
concerns,
shared
his
own
disgust,
sometimes
argued
and
finally
integrated
the
best
of
our
conversations
into
the
substance
of
the
bill
that
is
before
this
committee
today,
council
member
green.
We
thank
you
in
the
very
act
of
collaborating
closely
and
continually
with
us.
P
Thank
you,
susan
chairman
greene
and
members
of
the
finance
committee.
Thank
you
for
this
opportunity
to
speak
with
you
today
on
behalf
of
the
philadelphia
public
banking
coalition.
My
name
is
peter
winslow,
I'm
a
philadelphia
resident.
I
received
a
baba
in
economics
and
an
mba
in
finance
from
the
university
of
pennsylvania.
P
I'm
a
deloitte
alumnus,
and
I
conducted
my
own
cpa
practice
in
new
york.
I've
taught
accounting
finance
and
business
subjects
at
cornell
university,
under
college
of
the
city,
college
of
new
york,
rutgers,
university
and
temple
university.
My
business
experience
includes
startups
ramp,
ups
turnarounds
mergers
and
acquisitions
and
other
activities,
including
provision
of
financial
services.
P
One
quarter
of
banking
in
the
world
is
conducted
by
public
banks.
Almost
all
banking
in
the
united
states,
however,
is
the
province
of
for-profit
private
banks.
Currently,
a
country
has
only
two
public
banks:
the
bank
of
north
dakota,
founded
in
1919
and
the
territorial
bank
of
american
samoa,
founded
in
2016.
P
P
P
The
authority
will
need
to
establish
itself
and
prove
itself
through
successful
operations
on
its
way
to
becoming
a
public
bank
city.
Treasurer
dunn
will
not
deposit
city
funds
into
the
ppfa
until
the
authority
becomes
legally
eligible
to
hold
such
deposits,
and
she
determines
that
doing
so
is
prudent.
P
P
P
P
P
This
authority
seeks
to
supplement
not
duplicate
what
pid
pidc
does
in
a
similar
fashion.
The
ppfa
will
coordinate
with
two
other
organizations
that
are
now
getting
started:
the
philadelphia
green
capital
corporation,
an
offshoot
of
the
philadelphia
energy
authority
and
the
accelerator
fund,
an
offshoot
of
the
philadelphia
housing
development
corporation
pidc,
owns
and
develops
real
estate,
such
as
the
navy
yard.
Ppfa
will
hold
a
loan
portfolio
rather
than
a
real
estate.
Portfolio.
P
Pidc
is
a
partnership
between
the
city
and
the
philadelphia
chamber
of
commerce.
Ppfa
will
be
a
partnership
between
the
city
and
the
community
stakeholder
groups.
It
serves
cooperative
businesses,
black
and
latinx
owned.
Small
businesses
advocates
for
environmental
justice,
affordable
housing,
education,
equity
and
neighborhood
empowerment.
P
The
ppfa
business
model
is
based
on
partnership
rather
than
competition
with
other
financial
institutions.
Ppfa
will
be
a
banker's
bank
that
nourishes
the
local
financial
ecosystem
of
cdfis,
cdcs,
credit
unions,
community
banks
and
other
lenders
through
targeted
programs
that
provide
credit
enhancements
such
as
loan
guarantees.
The
ppfa
will
encourage
existing
lenders
to
serve
new
markets
that
they
currently
find
unattractive
together.
For
example,
we
can
help
close
the
840
million
dollar
lending
gap
for
small
businesses
in
philadelphia
that
was
identified
in
the
feasibility
study
conducted
by
hrna
advisors
for
the
city
last
year.
P
Ppfa
intends
to
become
a
cdfi
that
supports
other
cdfis,
to
become
a
city
depository
institution,
to
obtain
a
pa
bank
charter
and
become
a
member
of
the
federal
reserve
system
to
lead
the
national
public
banking
movement
by
becoming
a
municipal
public
bank.
These
aspirations
are
groundbreaking;
they
do
not
duplicate
the
activities
of
pidc
paid
or
any
other
existing
financial
institution
in
philadelphia.
P
A
Q
Q
I'm
vanessa
lowe
and
I'm
speaking
in
support
of
this
legislation
today
is
co-chair
of
the
economic
dignity
strategy
team
for
power.
Philadelphia
is
organized
to
witness,
empower
and
rebuild
powers,
a
coalition
of
over
50
faith-based
institutions
in
philly
and
nearly
100
statewide.
We
educate
and
mobilize
our
confidence
to
fight
for
economic
justice.
Q
I've
also
spent
more
than
21
years
in
federal
service
working
on
access
to
capital
for
underserved
communities.
I've
worked
at
the
u.s
treasury
department's
community
development
financial
institutions
fund,
which
you've
heard
a
lot
about
cdfis.
Today,
I've
worked
at
the
national
credit
union
administration,
supporting
a
series
of
small
credit
unions
and
helping
them
survive
and
thrive,
and,
most
recently
I
spent
two
years
at
the
u.s
economic
development
administration.
Q
N
Q
Q
Investing
has
many
names,
but
the
idea
is
that
our
values
and
our
ideas
about
improving
our
world
should
align
with
what
we
do
with
our
money
and
to
whom
we
entrust
it
with
major
cities
like
ours,
have
depended
on
an
outdated
system
of
giving
our
billions
of
dollars
of
tax
tax
income
and
fee
revenue
to
large
banks
for
investing
and
sourcing
bond
funds.
Those
large
banks
invest
those
funds
in
ways
that
are
often
contrary
to
our
city
goals
to
our
residence
goals.
Q
Q
These
cdfis
have
been
in
the
national
news
lately
because
they
were
the
ones
getting
those
ppp
loans
out
to
the
small
entrepreneurs
we
read
about
and
were
disgusted
by
the
loans
being
made
to
these
public
companies,
those
big
restaurants.
Some
of
them
were
even
saying.
I'm
going
to
send
this
back,
because
this
isn't
right
anyway.
So
while
citibank
and
other
large
banks
were
processing
those
loans
for
those
public
companies,
the
cdfis
were
at
work
getting
those
loans
out,
and
this
was
throughout
the
country,
but
also
here
in
philadelphia.
Q
That
has
been
around
now
for
almost
30
years
and
is
actually
thinking
about
and
talking
about
an
equity
fund
somewhat
of
a
new
concept.
That
would
be
absolutely
wonderful
and
is
so
much
needed
as
we've
talked
about
it's
not
just
access
to
capital,
but
it's
how
we're
getting
the
capital.
It's
not
just
loans
that
are
needed.
Sometimes
it's
grant,
sometimes
it's
equity.
Q
So
anyway,
the
philadelphia
public
financial
authority
can
serve
as
a
partner
to
these
institutions,
not
by
competing,
but
by
collaborating
to
identify
the
gaps
in
service
and
helping
them
to
fill
those
gaps.
Credit
enhancements
and
guarantees
from
the
new
authority
could
be
offered
to
those
cdfis
most
effective
at
reaching
key
populations.
Q
The
consolidation
of
the
banking
industry
as
a
result
of
regulation
and
credit
scoring
has
resulted
in
a
few
large
banks
who
are
not
interested
in
local
depositors
or
businesses.
They're,
not
interested
in
small
dollars.
The
local
credit
unions
and
other
cdfis
are
our
remaining
relationship
lenders
they
know
and
want
to
help
their
local
members
and
customers.
Q
R
So
I
want
to
talk
about
debt
and
we've
had
a
messy
relationship
with
debt
throughout
civilization,
but
I
think
we
all
have
some
intuitive
understanding
of
the
difference
between
healthy
debt
and
unhealthy
debt
with
healthy
debt.
Everyone
wins
someone
in
the
community
with
extra
cash
makes
it
available
to
someone
else
who
could
use
a
little
capital
to
increase
their
well-being
or
productivity.
R
R
R
R
C
My
name
is
dr
deborah
m
feigart.
I
reside
in
the
logan
square
or
franklin
town
or
spring
garden
neighborhood
in
philadelphia,
depending
upon
which
neighborhood
map
one
uses.
I
am
a
distinguished
professor
of
economics
emerita
at
stockton
university.
I
am
also
a
member
of
the
philadelphia
public
banking
coalition.
C
C
My
study
is
about
bank,
a
bank
that
lends
credit.
I
understand
that
the
proposed
authority
is
only
the
first
step
toward
creating
a
bank,
but
many
benefits
would
be
secured.
Nevertheless,
right
away
and
even
more
benefits
down
the
road.
I
calculated
the
economic
impact
on
earnings
on
jobs
and
on
value
added,
which
is
like
gross
city
product.
C
The
overall
takeaway
is
this:
every
one
billion
dollars
in
new
lending
by
the
authority
would
yield
approximately
142
million
of
increased
earnings
in
philadelphia,
3
200
new
jobs
created
in
philadelphia
and
1.5
billion
dollars
in
new
metro
area
gross
product
in
the
metropolitan
region.
We
call
philadelphia,
camden
wilmington.
C
This
new
authority
would
complement
our
existing
financial
institutions
and
economic
development
authorities
to
further
invest
in
underserved
communities,
small
businesses
and
housing.
This
would
both
broaden
and
deepen
the
credit
available
in
the
financial
system.
I
urge
you
to
support
the
bill.
Thank
you
very
much.
A
I'm
seeing
none
thank
you
for
providing
some
additional
perspective
and
context
from
a
host
of
areas.
All
of
you
have
a
range
of
backgrounds
and
experiences
that
definitely
have
added
some
additional
commentary
and
perspective
on
this
legislation
and
this
initiative
here
in
the
city
of
philadelphia,
and
I
appreciate
your
participation
and
your
ability
to
be
here
to
testify
with
that.
Mr
inuzi,
if
you
could
read
the
names
of
our
final
panel.
S
S
Liberty,
resources
under
federal
mandate
is
required
to
employ
at
least
51
percent
people
with
disabilities
and
our
board
of
directors.
Our
governance
is
required
to
be
at
least
51
percent
people
with
disabilities.
Our
mantra
in
the
independent
living
movement
is
nothing
about
us
without
us,
and
the
involvement
of
people
with
disabilities
in
financial
affairs
lending
opportunities,
commercial
residential
loans,
housing
development
are
very
important.
S
We
are
very
supportive
of
the
public
of
the
policy
advisory
council
that
would
be
part
of
the
bank
because
it
would
require
the
inclusion
of
community
stakeholders
and
who
better
to
decide
what
the
local
needs.
Local
financial
needs
of
a
community
are
than
the
people
who
live
in
these
communities
and
have
a
self-interest
or
stake
holder
interest
in
the
positive
outcomes
that
can
come
with
financing
lending
opportunities,
investment
opportunities,
reinvestment
opportunities
that
a
public
financial
authority
could
have.
S
We
are
proud
members
of
the
affordable
housing
coalition,
which
has
evolved
to
be
the
philadelphia
coalition
for
affordable
communities
and
support
issues
and
initiatives
that
really
advance
the
housing
needs
of
our
most
vulnerable
citizens
in
the
city.
Thank
you
very
much
for
this
opportunity
and
happy
to
answer
any
questions.
Thank
you.
A
T
T
Like
pidc
and
pcdc
to
the
streets
department,
because
their
businesses
are
perceived
as
waste
disposal,
the
banks
who
manage
philadelphia's
assets
have
favored
investment
of
public
dollars
in
the
fossil
fuel
infrastructure,
industry
infrastructure
in
the
form
of
wells
and
pipelines
to
exploit
and
deliver
fracked
gas
over
renewable
infrastructure,
which
is
critical
to
the
well-being
of
the
planet,
business
development
in
philadelphia
regarding
renewable
energy,
waste
reduction,
the
circular
economy,
in
addition
to
green
storm
water
infrastructure,
is
dominated
by
small,
locally
owned
businesses.
It
is
growing
and
it
is
poised
for
explosive
growth.
T
T
T
I've
come
to
realize
what
I
now
see
is
obvious,
no
matter
how
value
or
needed
the
social
or
environmental
policy
is,
and
regardless
of
the
opportunity
to
create
jobs
and
income.
When
it
comes
to
competing
against
traditional
financing
targets,
we
lose
every
time
establishing
a
public
bank
in
philadelphia,
will
even
the
playing
field
and
allow
us
to
redirect
our
tax
dollars
into
investments
that
will
reap
the
greatest
public
benefit.
I
don't
see
the
downside
and
I
encourage
this
committee
to
vote
for
this
legislation.
R
R
R
Many
of
these
closings
could
have
been
averted
if
philadelphia
had
an
adequate
and
appropriate
financing
system
to
help
small
business,
but
the
existing
entities
have
not
been
able
to
override
those
forces.
We
need
to
find
a
new
model
to
address
the
situation.
I
spent
38
years
running
a
small
business
and
am
now
retired.
R
I
look
relocated
my
small
business
from
new
york
to
northeast
philadelphia
in
1981.
This
means
I
brought
new
york
dollars
into
philadelphia,
used
them
to
purchase
office
equipment
from
local,
small
business
merchants
and
created
seven
new
jobs.
Obviously
my
efforts
were
microscopic
in
relation
to
the
broader
economy.
However,
collectively
small
business
makes
a
big
difference,
but
they
can
only
make
a
difference
if
they
exist
and
therefore
I
am
advocating
that
we
help
them
to
exist.
R
When
I
visited
a
loan
officer
at
my
local
bank,
his
response
was
to
refuse
my
request
to
fill
out
a
loan
application
and
ask
where
I
ever
got
the
idea
of
coming
to
a
bank
to
get
a
business
loan.
He
implied.
I
had
a
foolish
notion.
I
decided
to
stop
wasting
my
time
off
these
non-helpful
people
and
just
figure
out
how
to
finance
my
own
startup.
R
The
important
point
is
that
at
that
time
I
had
over
20
years
working
experience,
which
included
teaching
at
a
college,
doing
both
clinical
duties
and
medical
research
at
a
large
hospital,
and
I
had
worked
for
two
large
international
pharmaceutical
corporations.
My
experiences
had
included
both
administrative
duties
and
working
as
a
bench
scientist
in
pharmaceutical
research.
R
R
R
The
philadelphia
public
finance
authority
can
offer
small
business
a
credit
opportunity
without
concerns
about
earning
high
profits
to
satisfy
stockholders
and
greedy
executives.
It
could
partner
with
local
community
banks
and
other
entities
to
appropriately
evaluate
applicants
and
even
advise
and
guide
them
into
success.
R
R
They
take
dollars
out
of
the
city
economy,
with
their
enormous
fees
and
high
interest
rate,
and
leave
us
to
scramble
to
resolve
an
overwhelming
number
of
social
problems
here
in
philadelphia
within
our
underserved
communities.
We
have
many
capable
eager
budding
and
entrepreneurs,
but
they
need
a
hand
up.
You
now
have
the
opportunity
to
provide
that
help
by
providing
fair
credit
opportunities
to
our
underserved
communities.
Please
remove
the
automatic
rejection
stigma
and
help
them
prosper.
I
urge
the
members
to
vote
in
favor
of
this
bill.
Thank
you.
A
C
Yes,
hello,
my
name
is
margaret
lindsey
and
I
am
testifying
on
behalf
of
the
philadelphia
area
cooperative
alliance.
As
a
member
of
its
policy
committee
and
former
board
member
cooperatives,
as
you
may
know,
are
businesses
owned,
controlled
and
run
by
and
for
their
members
to
realize
their
economic,
social
and
cultural
needs?
There
are
over
170
co-ops
in
the
philadelphia
area.
C
And
the
philadelphia
area
cooperative
alliance
is
comprised
of
member
co-ops
in
the
philadelphia
region.
We
are
supporting
many
startup
co-ops
in
philly,
some
of
which
are
being
designed
intentionally
to
support
marginalized
communities
such
as
immigrants
and
returning
citizens
and
minority
businesses.
C
These
cooperatives
would
benefit
greatly
from
the
type
of
lending
that
would
be
supported
by
a
public
bank.
One
of
the
biggest
challenges
for
a
co-op
is
getting
the
financing.
It
needs
to
start
up
and
develop,
as
we've
heard
earlier
today.
Pidc
does
not
normally
fund
startups,
but
wants
two
years
of
existence
in
business.
C
In
addition,
banks
are
limited
in
the
amount
they
can
lend
to
co-ops
because
of
collateral
requirements.
Personal
guarantees,
requirements
from
owners
and
the
concept
of
community-owned
business
is
unfamiliar
to
many
lenders.
However,
public
bill
before
us
would
promote
investment
in
areas
that
specifically
include
cooperative
development.
C
So,
therefore,
you
know
just
in
closing
and
being
getting
right
to
the
point.
The
bank,
as
if,
as
you
heard
before,
could
provide
much
needed
capital
to
startups
and
support
community
center
cooperative
businesses.
It
could
be
the
difference
between
a
co-op
making
it
or
not,
making
it
so
well.
You
have
an
exciting
opportunity
to
invest
public
dollars
into
philadelphia's
communities
through
a
public
bank
which
could
in
turn
grow
philadelphia's
community
rooted
cooperative
businesses.
Thank
you
and,
and
we
look
forward
to
your
vote.
A
B
Good
afternoon,
council
members,
my
name
is
greg
wendell,
I'm
the
representative
for
the
philadelphia
democratic
socialist
of
america
on
the
philadelphia
public
banking
coalition.
More
importantly,
I'm
a
proud
graduate
of
our
philadelphia
public
schools.
I
was
born
and
raised
in
this
city
and
when
I
have
kids,
I
want
to
send
them
to
our
neighborhood
public
schools
and
that's
why
I
urge
you
to
pass
this
bill,
creating
a
public
bank
in
philadelphia
so
that
we
can
build
a
safe
and
modern
school
in
every
neighborhood.
B
As
a
student
and
later
as
a
reporter
for
the
philadelphia
public
school
notebook,
I
saw
firsthand
the
toxic
conditions
in
our
school
buildings
when
I
was
a
student
at
mastermind,
the
most
privileged
school
in
the
city.
The
fourth
and
fifth
floors
were
suddenly
shut
down.
After
a
maintenance
worker
found
exposed
asbestos,
they
never
determined
how
long
it
was
exposed
for
before
it
was
discovered
fast
forward
to
today,
and
that
school
community
is
still
struggling
to
ensure
their
students
have
safe
air
to
breathe.
B
As
council
members,
I'm
sure
you
already
know
of
the
toxic
conditions
that
are
even
more
common
at
schools
and
high
poverty
neighborhoods
of
color
throughout
our
city,
after
hard
fights
from
parents
and
staff,
the
school
district
is
rebuilding
cassidy
and
tm
pierce.
After
hard
fights
from
parents
and
staff
12
schools
have
had
to
shut
down
due
to
exposed
asbestos
since
the
fall
of
2019
parents
should
not
have
to
fight
for
safe
and
modern
school
buildings,
our
city
should
build
them.
B
Well,
it's
been
five
years
and
we've
only
been
able
to
issue
about
1
billion
of
the
3.5
billion
that
our
students
need
at
the
current
rate
of
spending.
Our
schools
continue
to
deteriorate.
There's
a
reason
for
this
in
order
to
improve
their
credit
rating
and
decrease
the
millions
in
interest
paid
on
these
bonds.
The
school
district
has
to
keep
its
annual
debt
service
payments
below
ten
percent
of
its
operating
budget.
According
to
ori
monson,
the
cfo
for
the
school
district,
the
numbers
are
clear:
our
school
district
cannot
do
it
alone.
B
B
But
by
creating
a
public
bank,
it's
an
opportunity
to
get
around
those
constraints
and
build
a
source
of
funding
that
can
address
this
crisis
with
a
public
lending
institution.
We
can
finally
give
over
a
hundred
thousand
public
school
students
and
their
families
what
every
child
deserves
a
safe
and
modern
school
in
every
neighborhood
across
our
city.
B
I
want
to
thank
council
member
green
for
introducing
this
bill
and
every
council
member
on
the
finance
committee
for
taking
the
time
to
listen
today.
Together,
we
can
take
this
opportunity
to
build
a
brighter
future
for
the
children
of
the
city,
for
the
families
who
depend
on
our
public
schools
and
for
the
communities
that
our
schools
serve.
I
look
forward
to
building
that
future
together.
I
M
L
A
Okay,
seeing
and
hearing
none,
I
want
to
thank
all
of
the
witnesses
that
are
here.
Thank
you
for
participation
today
for
all
the
witnesses
that
participated
in
today's
hearing.
Now
we
had
a
lot
of
information
that
was
very
detailed,
a
lot
of
ways
I
want
to
thank
you
for
your
time
and
your
passion
and
your
energy
and
perspective
and
providing
your
information
in
your
testimony.
We
definitely
value
your
opinions.
I
now
invite
all
panels
and
witnesses
to
please
disconnect
from
the
meeting
before
we
go
into
our
public
meeting.
A
A
We'll
now
convene
the
public
meeting.
Mr
arnes,
will
you
please
call
the
role
to
take
attendance
members
that
are
in
attendance?
Please
indicate
that
you
are
present
when
your
name
is
called
also.
Please
say
a
few
brief
words
when
responding
so
that
your
image
will
be
displayed
on
screen
when
you
speak.
C
Q
M
J
A
A
Quite
detailed
got
into
a
lot
of
different
perspectives
regarding
the
issue,
but
I
thank
all
of
you
for
your
participation
and
your
question
regarding
today's
bill
and
today's
conversation,
we
will
now
go
into
our
public
meeting.
I
now
recognize
council
member
squalor
for
motion
on
the
amendment
to
bill
number
210956.
H
A
A
H
A
Second
has
been
moved
and
probably
seconded
by
council
member
bass
and
bill
number
210956,
as
amended,
be
reported
from
this
committee
with
a
favorable
recommendation
and
further
move
that
the
rules
of
council
be
suspended
to
permit
first
reading
of
this
bill
at
the
next
session
of
council.
All
those
in
favor
of
the
motion
will
signify
by
saying
I.
A
Those
opposed
the
eyes
have
it,
and
the
motion
carries.
Thank
you
all
very
much.
This
concludes
the
business
before
the
committee
on
finance.
For
today
I
want
to
thank
all
of
my
colleagues
and
members
of
this
community
for
your
attendance.
I
know
it's
been
a
very
long
hearing
and
for
all
the
witnesses
and
observers.
Thank
you
for
your
participation
today
and
have
a
great
day
and
have
a
happy
holiday
season.
Thank
you
so
much.
Thank
you.