Redemption Bank debit card targets single mothers in housing aid

A pilot program through the Ohio Mother's Trust funneled $500 each month for a year to 32 single mothers in the Columbus, Ohio, area. Juanita Amakor, 36, who has a 7-year-old daughter, said the cash allowed her to catch up on bills and pay rent. "It's the breathing room it gives you, knowing there is something extra coming in. It relieves a lot of anxiety," she said.

In Michigan, Rx Kids gives women a one-time allocation of $1,500 during pregnancy, followed by $500 per month through the child's first months. Kinea Wright, 46, and her family received funding through the program in Flint. It helped with bills, diapers for her newborn daughter and other needs after her husband was injured in a forklift accident. "Initially, (the money) was put up for a rainy day," Wright said. "I didn't know the rainy day would come sooner than we thought. It was a blessing in disguise."

A year ago, Redemption Holding Co. completed its acquisition of Utah-based Holladay Bank & Trust, making it the first time a bank has been owned by a Black-led investment group in the Western U.S. Redemption Bank had roughly $65 million in assets at the time. It focuses on commercial lending and small business loans. Bernice A. King, the youngest child of the Rev. Martin Luther King Jr., is a co-founder and senior vice president.

"Economic opportunity must be practical, accessible and rooted in the needs of families," King said. "Bank King Card is an innovative way to support that work."

A Bank King Card credit card is expected later with interest rates capped at 12%.

The announcement coincides with Juneteenth, which also marks the one-year anniversary of Redemption's acquisition of Holladay Bank & Trust.