Last month, Chicago City Council passed an ordinance that can help expand opportunities to deposit City dollars in community banks by lowering the collateral threshold of deposits being held by banks from 102 percent to 100 percent. The ordinance passed at the urging of Chicago City Treasurer Melissa Conyears-Ervin, who has made a commitment to equity and small business growth a cornerstone of her work as City Treasurer.  “Under the previous ordinance, banks were required to pledge collateral valued at 102 percent of a deposit held, making it more expensive for community banks to hold city dollars,” said Chicago City Treasurer Melissa Conyears-Ervin. “By reducing the collateral threshold, we can help more small and mid-sized community banks hold City money and free up their capital that can, in turn, be loaned out in the community. This can help close access to capital and lending gaps in Black and Brown communities throughout Chicago.” The language related to collateralization requirements varies from state to state. Research shows it is not uncommon to see public sector entities to require deposits to be collateralized at 100 percent such as Indiana, Missouri, New York, New Jersey, Oklahoma, Rhode Island and Texas.