HOUSTON /diversitybusiness.com/ -- Shell Oil Company today announced it has formed an alliance with New York National Bank of Bronx, NY designed to expand New York National's lending capacity to qualified minority and women-owned borrowers.

"Shell developed this initiative because we want to actively participate in the revitalization of under-served communities. We want to provide financial and entrepreneurial education to minority business owners and assist them in achieving their dreams," said Shell Oil Company Treasurer Ron Leftwich. "This alliance between Shell and New York National will result in job creation and community development in New York City and will assist New York National in providing financing where it might otherwise be unable without Shell's involvement."

Through the Shell Community Banking Initiative, Shell will participate with New York National to fund both commercial and commercial real estate loans. Shell will make available up to $7.5 million through New York National to participate in these types of loans approved by the bank. Shell has also placed a $1 million deposit in New York National and purchased a $250,000 non- controlling equity investment in the bank.

"This is a significant commitment to New York's minority and women-owned businesses," said Bronx Borough President, Fernando Ferrer. "It will bring economic vitality to businesses in these under-served communities while enriching the quality of their lives."

"New York National is proud to be the only bank in the New York area to be a part of Shell's Community Banking Initiative," said Serafin Mariel, the bank's president and chief executive officer. "This alliance further reinforces the commitment we have made as a lender to minorities over the last 20 years."

The Shell Community Banking Initiative was established in February 1998 in Houston and Los Angeles to assist in addressing the social and economic needs in under-served communities. During the past 12 months, the program was launched in Washington D.C., Miami and New Orleans. To date, in addition to its investments in the 6 minority banks themselves, Shell has participated with the banks in over 25 community development loans totaling over $24 million. All of the loans funded to date have resulted in true community enhancement and job creation in these cities. Loans have been made to minority entrepreneurs to establish diverse enterprises, from a state-of-the- art children's school in Inglewood, Calif., to a Denny's Classic Diner in Houston and to low to moderate income multi-family housing projects in Washington D.C. and New Orleans.

New York National Bank was founded in 1982 by a group of approximately 100 mainly inner-city business owners organized by Serafin Mariel. A full service community bank with 5 branches in the South Bronx, upper Manhattan and on Roosevelt Island, New York National Bank offers a variety of personal and business lending products, including residential mortgage loans, working capital loans to neighborhood businesses, commercial mortgages for business properties and multi-family dwellings.

SHELL COMMUNITY BANKING INITIATIVE PROGRAM DETAILS

Objectives:

• Provide meaningful financial resources to stimulate the creation and/or expansion of minority and women-owned businesses and the financial institutions that serve them
• Create a positive impact on the economically under-served segments of these communities through the creation of jobs; ownership/expansion of small businesses; construction/refurbishment of affordable housing; and other forms of community development

Shell's Initiative with regard to its participating banks consists of:

• A $250,000 non-controlling equity interest
• A $1 million deposit
• $7.5 million for community development loans

In addition, Shell has:

• A $60 million credit facility with 40 minority and women-owned financial institutions
• $5 million in certificates of deposit with over 50 minority and women-owned financial institutions

Participation

Minority and women-owned businesses and entrepreneurs that operate or plan to establish operations in the areas served by participating banks are encouraged to apply. New loans may be extended in accordance with credit procedures and policies established by the participating banks. Loan applications must be submitted directly to the participating banks.

     Participating Banks:
     Unity National Bank                  Houston
     Founders Bank of Commerce            Los Angeles
     The Adams National Bank              Washington D.C.
     Dryades Savings Bank, FSB            New Orleans
     Continental National Bank of Miami   Miami
     New York National Bank               New York