Municipal service providers, such as school districts and public utility commissions, will be the primary customers of the Los Angeles Public Bank. The bank will act as a “mini-Fed” for the region, providing assistance to local banks and guaranteeing loans. It will be established as a “banker’s bank,” meaning that it will offer loans in partnership with community banks and credit unions. 

The public bank will work with local community banks, credit unions, and CDFIs to lend for projects that meet the needs of the community. This will help local banks to have greater lending ability and solvency. The bank will also initiate investment programs that align with the economic development plans of the City of Los Angeles, such as lending for affordable housing, supporting small and medium-sized businesses, and financing infrastructure projects that are financially viable and environmentally sound. By recycling public money locally, the public bank can ensure that it is not sent to distant shores.