TCF Bank unveiled a $1 billion loan commitment to minority communities and minority- and women-owned small businesses, and a $10 million grant program to assist low-to-moderate income home buyers. The five-year programs are part 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.
“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. 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,” Gary Torgow, executive chairman of TCF, said. “Last month, we joined Mayor 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.”
Profits that TCF expects to generate from the Paycheck Protection Program (PPP) will help support this commitment.
The small business loans of up to $1 million each will be available across TCF’s footprint and nationally to ensure access to credit to minority- and women-owned small businesses and small businesses in largely minority communities. 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% 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, which would be about 2.5 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 home ownership, and our hope is this grant will provide a pathway to home ownership for more people,” Craig Dahl, CEO of TCF, said. “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.”
