Second-oldest Black-owned bank in U.S. receives $3m deposit to support minority-owned businesses

The second-oldest Black-owned bank in the U.S., Mechanics and Farmers Bank (M&F Bank), has received $3 million in funds deposit from ChannelAdvisor Corporation to support minority-owned businesses.

ChannelAdvisor Corporation is a leading provider of cloud-based e-commerce solutions that enable brands and retailers to increase global sales while M&F Bank is a historic Durham-based community bank committed to personal and community development in North Carolina.

ChannelAdvisor, in a statement, said it found M&F Bank as the ideal financial institution for its deposit, which aims to bolster the inclusive recoveries of companies impacted by the ongoing pandemic.

“We’re committed to doing our part to support and increase economic opportunity in the communities around us, especially underserved entrepreneurs and business owners,” said David Spitz, CEO at ChannelAdvisor.

“Access to capital has been a long-standing barrier to growth for many minority-owned businesses, and through our partnership with M&F Bank, we can help lower those barriers. We’re proud to partner with such a venerable and mission-driven organization.”

James Sills, President, and CEO of M&F Bank said: “We are always grateful for opportunities to create relationships with other institutions whose values and goals align with ours. There is power in a group effort, and our communities directly benefit from partnerships like ours with ChannelAdvisor. We thank ChannelAdvisor for the trust in M&F Bank to be their financial partner.”

On its website, M&F Bank said it was founded in 1907 by nine businessmen who were involved in the establishment of many institutions and organizations that formed the nucleus of a thriving business and residential district in Durham, anchored by what became known as Black Wall Street.

These men were R. B. Fitzgerald, J. A. Dodson, J. R. Hawkins, John Merrick, Aaron M. Moore, W.G. Pearson, James E. Shepard, G. W. Stephens, and Stanford L. Warren.

The bank was established out of the need to provide a banking opportunity for the Black community in 1907 who were navigating tremendous obstacles in the fight to participate in the economy.

“For African Americans, there were few opportunities to obtain financing for their business ventures or homes. There were equally few options to safely place money on deposit and earn interest with established banking institutions, so, the black community created their own,” it said.