Cleveland-based KeyBank, which has its Michigan headquarters in Southfield, has announced it will increase its commitment to its Community Benefits Plan to $40 billion, with some of the funds supporting Michigan communities.
The company says it is building on early fulfillment of its original $16.5 billion plan, and the investment will continue to focus on economic access and equity for underserved communities and populations.
“KeyBank has a long-standing commitment to the Michigan community,” says David Mannarino, president of the Michigan Market for KeyBank. “We know the region and have a proven track record of helping clients and communities thrive. KeyBank will work closely with local leaders and organizations throughout Michigan to develop comprehensive solutions to the pressing issues of economic disparity, racial equity, and environmental sustainability.”
The plan was originally launched in 2017 and surpassed its goal in 2020, delivering more than $18 billion in lending and investments across its footprint, including $152 million of investments in Michigan. The Michigan funds supported small business and home lending in low- and moderate-income communities, affordable housing and community development projects, and philanthropic efforts targeted toward education, workforce development, and safe neighborhoods.
As of the end of 2020, KeyBank invested more than $58 million in affordable housing and community development projects in Michigan including developments such as Cherry Hill Place Apartments in Inkster and Selinon Park Apartments in Portage.
It originated $38 million in small business loans to businesses that are part of low- and moderate-income communities and provided $56 million in mortgage lending to low- and moderate-income communities in and around Michigan.
The bank also made $470,000 in philanthropic investments in neighborhoods in Michigan, including a $300,000 grant to Michigan Ability Partners as well as grants to United Negro College Fund Detroit and Matrix Detroit.
“Doing our part to address social justice and racial equity, increasing environmental concerns, and an international pandemic with disproportionate impact on low- and moderate-income communities is both an opportunity and an obligation,” says Chris Gorman, chairman, president, and CEO of KeyBank. “Creating shared value with the communities we serve means facing head on the issues we have long been working to address. These systemic issues must be addressed collectively – inside and outside our company – to drive the outcomes we want to create.”
Through the expanded commitment, KeyBank’s aggregate investments nationwide under the plan will include $36 billion in economic equity and inclusion initiatives. The company will continue to provide affordable housing, mortgages, small business lending, and philanthropy throughout the markets where it does business. It also plans to support homeownership by investing in down payment assistance.
KeyBank will also use the money to focus on diversity, equity, and inclusion inside and outside the company.
“While 2020 has brought significant challenges to our communities and a collective awakening about the injustices people of color face every day in America, these challenges have presented each of us with opportunities to take action and influence change,” says Greg Jones, chief diversity, equity, and inclusion officer for the bank. “Through the National Community Benefits Plan, we are committed to addressing these issues in ways that provide both comprehensive and sustainable social, racial, and economic solutions. Whether it is providing access to affordable housing, supporting local small businesses, or increasing representation within KeyBank’s executive ranks, the extended plan is designed to build upon our strong foundation and create lasting change in our communities.”
It will dedicate $4 billion to renewable energy and sustainability. Since 2012, KeyBank has made more than $15 billion in renewable energy investments. The updated commitment will include increasing KeyBank’s renewable energy financing and accelerate its efforts to reduce the company’s environmental footprint.
To implement the plan, KeyBank will work with community leaders and organizations to develop plans for each market is serves across 15 states. More information on the plan is available here.