Business Utilization and Development Memorandum (BUDM) 01-04
Minority Bank Program
D-7800
ACM-1.10
To: Regional Director, P.N., MP, LC, UC, GP
Attention: PN-3702, PN-3703, MP-825, LC-3103, UC-458, GP-3800
Director, Administrative Service Center
Attention: D-2945
Director, Management Services
Attention: D-7810
From: Ron Simonich
Manager, Business & Economic Development Program
Subject: Business Utilization and Development Memorandum (BUDM) 01-04 - Minority Bank Program
I am forwarding a memorandum dated July 17, 2001, from the Director, Office of Small and Disadvantaged Business Utilization which provides an updated roster of Minority Bank Deposit Program participants who have been certified to participate in this Department of Treasury initiative for the year 2001.
The Minority Bank Deposit Program (MBDP) is a voluntary program to encourage Federal agencies, State and local governments and the private sector to use MBDP participants as depositories and financial agents. Qualified MBDP participants are certified by the Financial Management Service (FMS), a bureau of the Department of the Treasury, and included on a program roster distributed nationally to Federal program agencies, contractors and other public and private sector organizations.
The MBDP began in 1969 in response to Executive Order 11458 (March 5, 1969), which established a national program supporting minority business enterprise. It was expanded under Executive Orders 11625 (October 13, 1971) and 12138 (May 18, 1979). The Competitive Equality Banking Act of 1987 (Public Law 100-86) and the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (Public Law 101-73) include provisions supporting the intent of the MBDP.
Potential deposits include agency deposits of public money, cash advances to Federal contractors and grantees, certain independent demand deposits, e.g. Postal Service deposits, and certificates of deposit (CD). Typical CDS include the non-appropriated funds of various military organizations (exchange or club funds), certain Department of Agriculture funds, and funds that the Bureau of Indian Affairs invests on behalf of Indian Tribes and Alaskan Native Villages. If a Federal agency chooses to use a MBDP participant as a depositary, the agency must coordinate the banking-type arrangements with its headquarters office and the Financial Management Service, Department of the Treasury.
Eligible participants include commercial banks and savings and loan associations which are minority-owned or minority-controlled; commercial banks and savings and loan associations which are owned, controlled and operated by women; and credit unions serving low-income members (i.e. low-income credit unions).
Please advise if you have any questions.
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