Huntington Bancshares Inc. and the National Community Reinvestment Coalition (NCRC) announced a $40 billion community benefits plan that will focus on affordable housing, small business loans, and increased capital to low and moderate-income communities, communities of color, and historically disadvantaged communities.
The plan was formulated based on discussions between the bank, NCRC, and more than 120 community leaders in 20 cities across seven states. The two groups signed an agreement in the past, when in 2016 the bank committed $16.1 billion for a plan completed in 2020.
The plan includes $24 billion for affordable housing, $11 billion of which is dedicated to communities of color and under-resourced populations. Small business lending programs will receive $10 billion, with $2 billion going to minority-owned businesses or businesses operating in majority-minority communities.
Community development lending and investing used to develop programs and services that offer equity in areas such as affordable housing, small business financing, and community services that provide food security, financial empowerment, and workforce development will receive $6.7 billion.
“We appreciate the leadership and commitment of Huntington Bank to come back to the table with NCRC and our members to develop a new community benefits plan that makes specific and significant commitments to increase investments, lending and access to affordable homes in communities of color,” says Jesse Van Tol, CEO of NCRC. “Those kinds of investments are an important step to closing the nation’s racial wealth divide.”
This plan comes only a week after Huntington’s merger with TCF Financial Corp. The NCRC has arranged 15 similar agreements worth a combined $338 billion for the same causes.
“As a growing bank dedicated to supporting the people, businesses and communities throughout our expanded footprint, we recognize the responsibility we have to help improve economic opportunity for those we serve,” says Steve Steinour, chairman, president, and CEO of Huntington.
“Our purpose of looking out for people guides us to be a catalyst for positive change and to ensure under-resourced consumers and businesses have the access to capital, affordable housing and other resources to achieve their goals and to pursue their dreams.”