NEW ORLEANS – Capital One announced a new $1 million investment for Community Development Financial Institutions (CDFIs) serving New Orleans, building on the company’s longstanding commitment to the region following its 2005 acquisition of Hibernia Bank.
Through the investment, Capital One will equip CDFIs with additional tools and resources to meet local community development challenges and advance solutions. CDFIs are mission-driven financial institutions that operate with the goal of expanding access to capital among underserved individuals and entrepreneurs through flexible and targeted financial products and services.
The investment signals the start of the implementation of Capital One’s historic $265 billion Community Benefits Plan, a five-year commitment tied to the company’s proposed acquisition of Discover Financial Services, which recently received regulatory approval. The plan will mobilize lending, investment and services to advance economic opportunity and financial well-being across America.
“Capital One’s growth as a full-service retail and commercial bank has deep roots in New Orleans starting nearly two decades ago, through the transformative acquisition of Hibernia Bank. We’re proud to announce our first CBP commitment in this important market at another pivotal moment for Capital One,” said Kerone Vatel, Senior Vice President of Community Finance, Impact & Investment at Capital One. “This investment enables Capital One and New Orleans-serving CDFIs to further our shared community revitalization goals and scale our joint impact across the region by spurring small business growth, creating and preserving affordable housing, increasing access to goods and services, and supporting hardworking families and individuals.”
CDFIs play a crucial role in fueling local economies by connecting consumers to the financial products and services they need to achieve their version of the American dream. Capital One’s investment will help catalyze redevelopment work across the region and expand capacity among national and local CDFIs that play a critical role in responding to New Orleans community needs. In addition to this new investment, Capital One also engages regularly with CDFIs through its Community Advisory Council, as well as grant funding, lending and pro-bono volunteering, which helps CDFIs build capacity and access resources to advance their missions.
“CDFIs are powerful local engines—especially in New Orleans, where adaptability and innovation are second nature,” said Michelle Whetten, vice president and Gulf Coast Market Leader at Enterprise Community Partners. “Capital One’s commitment will help local CDFIs deliver flexible, low-cost capital that drives economic development, provides critical support for first-time homebuyers and small businesses, and meets the urgent needs of our communities.”
The $1 million investment was first previewed last week in a convening with 50 influential New Orleans changemakers and experts focused on affordable rental housing and homeownership in the region. The convening included organizations from Capital One’s 50+ community partners in the region, which the company supports through its philanthropic portfolio.
“As a top community development lender, this investment aligns with Capital One’s mission and commitments to the greater New Orleans community,” said Katharine Kay, Greater New Orleans Market President at Capital One. “We’re proud to build on our longstanding history in the region and work with our partners, clients and community leaders to build momentum for the future.”
###