TCF Bank today committed $1 billion in loans to minority communities and minority- and women-owned small businesses, as well as a $10 million grant program to assist low-to-moderate income home buyers.
The five-year programs are among the first tangible products of a public commitment Detroit Mayor Mike Duggan secured from major corporations in the immediate aftermath of George Floyd’s murder, who was killed on May 25 while in police custody in Minnesota. The new funding will impact businesses across TCF’s footprint and the country.
“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,” says Gary Torgow, executive chairman of TCF.
“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. Last month, we joined Detroit Mayor Mike Duggan and other business leaders in Detroit and pledged to do our part to fight racism, bigotry, and inequality in this country. Today, we take another step in our journey to help create a more equitable future for all.”
TCF expects to generate funds for the initiatives, in part, from the Paycheck Protection Program.
The small business loans of up to $1 million each will be available across TCF’s footprint and nationally. The bank will focus its efforts in Detroit, Minneapolis/St. Paul, Chicago, Cleveland, Grand Rapids, and other cities in its markets.
The Heart and Home program for qualified home buyers 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 percent 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, up from nearly 300 in 2019.
“When people own their homes, it builds the neighborhood, provides stabilization, and strengthens the community,” says Craig Dahl, CEO. “We recognize that access to funds for a down payment is the single largest hurdle to home ownership, and our hope is this grant will provide a pathway to home ownership for more people.
“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.”
Since the COVID-19 pandemic, civil unrest, and a major flood in the Midland area, the bank has increased its community investment, including:
- Match donations for Henry Ford Health System in Michigan and M-Health Fairview in Minnesota COVID-19 emergency needs fund;
- A $10 million loan program with Wayne County to provide fast relief through low-interest loans to help local small businesses; this program, recommended by Wayne County Executive Warren Evans, served as inspiration for the $1 billion small business commitment announced today;
- $250,000 in donations to Great Lakes Bay Region community organizations and a $10 million Hardship Lending Program to support residents and businesses impacted by the dam failures and flooding in Midland and Gladwin counties;
- $700,000 in donations to organizations that offered programs and resources to underserved communities impacted by COVID-19.
In 2019, Minnesota’s TCF and Detroit’s Chemical Bank merged, forming the largest Michigan-based bank. Construction on its new headquarters in Detroit is underway. It committed $5 million 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.
TCF Financial Corp. is a financial holding company with $49 billion in total assets as of March 31.