Community Reinvestment Act
The Community Reinvestment Act (CRA) is an important law that encourages banks to make loans and investments in low- and moderate-income communities across the country. At Cornerstone Capital Bank – including our division Roscoe Bank – we use our community development expertise—through our lending, investing and philanthropic capital—to build and strengthen the neighborhoods we serve.
Community Development is where the rubber meets the road for the Community Reinvestment Act
Utilizing the spirit of the law under the CRA, community development seeks to ensure action within four key areas that ensure community sustainability, and long-term vitality. Those four areas include Affordable Housing, Community Services, Economic Development, and Revitalization/Stabilization or rather fighting blight. While these areas are broad, under the CRA banks must meet the community credit needs of the entire community they serve; especially low- to moderate-income persons, or geographies.
Four Pillars of Community Development
Community Services
The practice of engaging community organizations that better the economic lives of our communities, such as homeless services, medical services, financial education, homeownership education and foreclosure prevention.
Affordable Housing
This seeks to create, preserve and support affordable housing developments or opportunities. Our teams are passionate about affordable housing because it’s an important need, and we want to improve the quality of our communities so they can thrive for years to come.
Economic Development
Here we work diligently in the creation of jobs by supporting small businesses who earn less than $1 million a year in revenue or have below government regulated employment levels. Our goal is to improve, attract or retain employees in our communities.
Revitalization and Stabilization
This pillar is geographically focused to serve low- to moderate-income or middle-income distressed or underserved communities. For example, we seek opportunities to actively fight against community decline by financing or investing in opportunities that attract, retain or improve an area for residents or businesses.