The San Francisco Board of Supervisors voted 9-2 to place a measure on the November ballot that would be a step towards creating the first city-run public bank in the country. A public bank would let the city issue low-cost loans to affordable housing developers, small businesses, green infrastructure projects, and other entities that struggle to get loans from traditional banks.

Details of the Proposal

Supervisor Chyanne Chen, who sponsored the measure, said, “We can build a public bank that prioritizes reinvesting back into what we all need to sustain our local communities.” The measure will appear on the Nov. 3 ballot and requires over 50 percent of the vote to pass. Supervisors Stephen Sherrill and Alan Wong were the two dissenters, with Wong expressing concerns about the city’s ability to manage a public bank.

Professional bankers would be hired to administer the bank. This November ballot measure is a first step: It would create the governance structure for a “municipal finance corporation,” an entity that would eventually turn into a public bank. For the bank to actually start functioning and dispersing loans, about $325 million in start-up money is needed. After that, the bank would be self-sustaining.

Supporters of the public bank are celebrating, calling it the product of years of advocacy. Misha Steier, spokesperson for the San Francisco Public Bank Coalition, said, “The S.F. Public Bank will put people over profits to invest in what we all need — affordable housing, infrastructure, local small business, and green energy.”

Original reporting: Mission Local — read the source article.