Please Support AB 310 California State Public Bank
The California Public Banking Alliance urges supporters of public banking and everyone concerned for California recovering with vitality from COVID-19 to send a clear message to the California Assembly and Senate calling to support AB 310. This bill will transform the existing California State Infrastructure Bank into a COVID-relief focused revolving loan fund capable of evolving into our own California State Public Bank.
Please click the "Start Writing" button to send this letter to your legislators, or draft your own, urging support of AB 310, that will give California a source of funds independent of Wall Street banks to rescue California institutions and small businesses. The State Public Bank will put the needs of marginalized Californians, underserved businesses, including Black and Brown-owned businesses and tribal businesses ahead of the needs of giant corporations.
As a voter in your district, I am urging your support, endorsement and sponsorship of AB 310 to convert the existing California State Infrastructure Bank (I-Bank) into a source of funds for COVID relief. This legislation allows for the expansion of the I-Bank into a larger, more effective revolving loan fund, which ultimately will transition into a State Public Bank, capable of receiving deposits from public institutions.
California holds hundreds of billions of dollars of public money in Wall Street banks, and our cities and counties hold billions more. These corporate banks control these deposits reaping profits on this money for the benefit of shareholders with little regard for the most needy Californians. By establishing our own public bank, California will save hundreds of thousands of dollars in bank fees. Not only that, bank deposits can be leveraged up to ten times to provide recovery loans at lower interest rates. Loans will be targeted to Californians most in need and most capable of leading a recovery to build a sustainable 21st Century economy.
An extra benefit of AB 310 is that it will begin moving California’s public money away from Wall Street banks that finance harmful industries such as private prisons, immigrant detention centers, weapons manufacturers and fossil fuel extraction. The State Public Bank will employ ethical loan policies to bolster community banks and credit unions, enabling them to provide capital for building local businesses. The State Bank will also enable publicly-financed affordable housing and modern infrastructure projects capable of mitigating disasters from wildfires, earthquakes and other natural disasters.
Our state public bank will return revenue it earns to the state and its communities, creating desperately needed funds without having to raise taxes. It will provide resiliency to face the next crisis.
I urge you to stand with the people of California and support AB 310 to reinvest in California, rebuild our organizational and business networks, and recover from the unprecedented crises of 2020.