TCF Bank is making a five-year, $1 billion loan commitment to minority communities and minority- and women-owned small businesses, including in Grand Rapids.
The Detroit-based bank, which merged with Chemical Bank last year under the name TCF and has a large West Michigan footprint, said last week that it is making the $1 billion loan commitment, along with a $10 million grant program to assist low-to-moderate income homebuyers.
The five-year programs are among the first results of a public commitment Detroit Mayor Mike Duggan secured from major corporations in the immediate aftermath of George Floyd’s murder and will impact businesses across TCF’s footprint and the country. The bank will focus its efforts in Detroit, Minneapolis/St. Paul, Chicago, Cleveland, Grand Rapids and other key cities in its markets.
Profits TCF expects to generate from the Paycheck Protection Program (PPP) will help support the commitment.
“While small businesses drive the economy and are the backbone of our neighborhoods, minority-owned and women-owned small businesses have historically had a more difficult time obtaining loans than their white and male counterparts,” said Gary Torgow, TCF executive chair.
“We recognize the crucial need for change, and as a bank committed to strengthening individuals, businesses and communities, we are inspired to help these business owners create wealth and pursue their dreams.”
The small business loans of up to $1 million each will aim to ensure access to credit to people of color- and women-owned small businesses and small businesses in largely nonwhite communities.
The Heart and Home program for qualified homebuyers provides grants up to $3,000 to help cover closing costs. The grant does not need to be paid back and is available to customers who earn less than 80% of the area median income or who purchase homes in a low-to-moderate-income census tract. TCF’s goal is to fund about 750 grants in 2020 — about two-and-a-half times more than the nearly 300 grants funded in 2019.
“When people own their homes, it builds the neighborhood, provides stabilization and strengthens the community. We recognize that access to funds for a down payment is the single largest hurdle to homeownership, and our hope is this grant will provide a pathway to homeownership for more people,” said Craig Dahl, TCF CEO. “As people and communities look to recover from the impacts of the COVID-19 pandemic, we recognize that now, more than ever, we can make a difference and help our customers through these challenging times.”
In 2019, TCF and Chemical Bank merged, forming the largest Michigan-based bank, with $49 billion in total assets as of March 31 and 500 branches in seven states.
Construction on its new headquarters in the city of Detroit is underway.
The bank has a history of corporate and philanthropic giving, volunteerism and strategic partnerships, including a $5 million commitment to Detroit’s Strategic Neighborhood Fund for the Grandmont Rosedale neighborhood. TCF Bank worked with Duggan to leverage its commitment for another $30 million in fund donations from six other Michigan corporations.
More information about TCF and its charitable efforts is at its investor relations page at ir.tcfbank.com.