An agreement has been reached by Major League Soccer to assist Black banks in an effort to bridge the racial wealth gap.

• A syndicate of eight Black banks has loaned Major League Soccer $25 million.
• Tier 1 capital is created by paying interest and fees in advance.
• Almost immediately, Black banks will be able to provide more loans and lines of credit in economically disadvantaged neighborhoods with such a deal.

A syndicate of eight Black banks has loaned Major League Soccer $25 million, with the aim of increasing their lending power and reducing the racial wealth gap.

The interest and fees for the loan will be paid in advance, resulting in Tier 1 capital, allowing Black banks to offer more loans and lines of credit in economically disadvantaged neighborhoods.

MLS Commissioner Don Garber stated in a release that the partnership between Major League Soccer and the National Black Bank Foundation is a crucial step towards closing the racial economic gap in the US and is a sound business decision. He emphasized that economic justice must be included in the equation in order to make a genuine impact. The aim of this partnership is to raise awareness about the significance of Black-owned banks and their role in the economy.

Cynthia Day, CEO of Citizens Trust Bank, stated on CNBC that they are not only discussing solutions for racial inequality but also actively participating in them. Specifically, MLS is facilitating access to capital for minority businesses, which are vital to the communities they serve.

The National Black Bank Foundation facilitated a deal led by Atlanta-based Citizens Trust Bank and New York-based Carver Federal Savings Bank, with participation from other Black banks such as Alamerica Bank, Carver State Bank, Columbia Savings & Loans, Mechanics & Farmers Bank, and Unity National Bank.

Ashley Bell, co-founder and general counsel of NBBF, stated that Major League Soccer has set a new standard for corporate America through its transformative partnership. If other leagues and major corporations adopt the MLS model, the lives of Black families across the country will improve because their local Black banks will have the financial resources to approve a large number of home and small business loans.

The racial wealth gap in America, which is the difference between the net worth of Black families and white families, is more than $11 trillion dollars, as stated by Dr. William Darity of Duke University's Sanford School of Public Policy. However, he believes that the pandemic has likely widened this disparity. According to the Federal Reserve, 82% of Black families have less wealth than the typical White family.

The league established a diversity committee in October 2020 to promote racial equality and increase Black representation in soccer.

The coalition of more than 100 players, coaches, and staff in MLS, which has members on the diversity committee, commended the agreement.

By securing deals like the one we celebrate today, we directly address and establish a platform to overcome the undervaluing of Black participation in the economic ecosystem, as Black Players For Change Founder Quincy Amarikwa stated in a release. This demonstrates that we are moving in the right direction, and we welcome the opportunity to continue this positive forward momentum in partnership with MLS.