MLS Launch Nationwide Partnership with National Black Bank Foundation

March 18, 2022 

Major League Soccer (MLS) recently announced plans to leverage a historic $25 million loan facilitated by the National Black Bank Foundation (NBBF), a non-profit working with corporate and philanthropic partners to help underserved communities gain access to capital in order to close the racial wealth gap in the United States. 

The league notes that the initiative is the first of its kind, with no other sports league carrying out a major commercial transaction exclusively with Black banks. “As a league, we continue to increase our initiatives in support of racial justice. In order to make a genuine impact, economic justice must be a part of the equation. This transaction with a syndicate of community-focused Black banks is an important measure, and it is our hope this will raise awareness of the importance of Black-owned banks and their impact on the economy,” said MLS commissioner, Don Garber. 

In 1976, there were more than 50 Black-owned banks across the US, and today there are just 18 left - underscoring NBBF's statement that “Black banks are an endangered species. As they close, so do the windows of opportunity for communities of color.” Founded in 2020, the NBBF was formed to uplift Black-owned banks and the communities they serve to ensure equitable access to capital. 

The $25 million transaction, coupled with MLS’ strong credit rating, will grow the banks’ capital through fees and interest earned. This in turn will create additional capacity for new lines of credit for home and small business loans in communities of color across the US. NBBF has organized a syndication team led by Atlanta-based Citizens Trust Bank and New York-based Carver Federal Savings Bank to facilitate the loan.

According to the Federal Reserve, unbanked and underbanked rates in 2020 were higher among adults with lower income, adults with less education and Black and Hispanic adults. In addition, lenders denied Black mortgage applicants at a rate 84% higher than White borrowers. As stated in MLS’ press release, the lack of access to essential financial services has forced Black households to rely on costly alternatives like check-cashing services, payday loans, money orders and prepaid credit cards. Over a financial lifetime, those fees can total upwards of $40,000. 

This partnership is a significant part of the league's commitment to diversity, equity and inclusion across the board. During the 2020 MLS is Back tournament, a collection of over 170 players launched Black Players for Change, an organization dedicated to racial and social justice on and off the field. More recently, MLS and Cincinnati FC announced an apparel partnership with three local Black-owned businesses. 

As part of the initiative, MLS will partner with 100 Black Men of America Inc., National Coalition of 100 Black Women and Black Players for Change along with NBBF to educate their network on economic empowerment and programming. 

NBBF co-founder and general counsel, Ashley Bell, believes that MLS has provided a blueprint for others to follow and has ultimately “raised the bar for corporate America” with this partnership. “If other leagues and major corporations follow the MLS model, lives of Black families all across this country will change for the better because their local Black banks will have the capital resources to approve historic numbers of home and small business loans.”