We received the following press release today from Amara Enyia’s mayoral campaign. Her campaign website is here.
Moving Chicago in the right direction requires out-of-the-box thinking about what it takes to grow the economy. Dr. Amara Enyia is proposing a public bank for Chicago because Chicago needs to be able to finance its major infrastructure projects, provide access to capital for small businesses and homeowners, and generate revenue. “Establishing a public bank in Chicago would make us a national leader pursuing the boldest financial reforms,” she said.” Chicago’s economy remains in the clutches of private banks and prioritizes the needs of private banks over the needs of the City. This depletes our treasury and keeps our economy from improving and creating jobs,” said Enyia.
Chicago has one billion dollars in debt to the big banks which means taxpayer dollars leave the city A public bank, modeled after the Bank of North Dakota, would allow us to invest in large and small scale projects, that will stimulate investment.
“Our proposal will support the local economy by making loans to help small businesses, homeowners and landlords, and fund infrastructure, while the publicbank would benefit from revenue generated through the bank” said Enyia. “Being able to extend lines of credit to small business owners beyond what traditional banks have been able to do, allows communities that have been struggling with access to capital to grow.” The city would be able to more effectively address infrastructure needs without the high interest rates and finance fees the city now pays to borrow from other financial institutions.
A public bank could also address lending disparities that affect housing quality and access. A report issued by the Institute for Housing Studies at DePaul University found that while the multi-family loan market is dominated by bigger loans targeted to wealthy communities, credit is difficult to obtain for apartment building owners in low-income neighborhoods. Lack of access to finance means landlords struggle to pay for projects like roof repairs and this puts properties and neighborhoods at risk of deterioration.
“A public bank could offer low-interest loans to homeowners and landlords. This would decrease the poor conditions in many housing developments that cater to low-income residents. It also ensures that homeowners are able to care for their homes, which can stabilize and improve property values,” added Enyia.
As mayor, Dr. Enyia’s economic agenda seeks to promote balanced growth across the entire city and strengthen Chicago’s economy by ensuring that money circulates within the city for the benefit of the public. Moving Chicago forward requires bold thinking under new leadership.
(Press release provided by Envyia for Mayor)