Mitsubishi UFJ Financial Group will provide $3 million in support to small businesses and communities in response to the COVID-19 pandemic.
MUFG’s plans to provide $1.4 million in support of the small business sector in the United States, which will be allocated toward U.S. economic development activities that sustain small business operations, particularly in low- and moderate-income communities. The company also will provide $500,000 for U.S.-based social safety net programs, including regional foodbanks, earmark $100,000 for community-based organizations in Canada and Latin America and supply $1 million to existing small business grants in the United States. Additionally, to further assist long-time community partnerships in the United States, the company’s foundation has adjusted its funding criteria to consider grants that cover operating costs.
“This is an unprecedented global event that is significantly affecting the communities where our colleagues, families and clients live and work,” Steve Cummings, president and CEO of MUFG Americas, said. “We believe it is our responsibility to be part of the solution to help those that have been impacted and accelerate their path to recovery.”
The company also is working with the Bankers Small Business Community Development Corp. of California, a CDFI (Community Development Financial Institution) and affiliate of CDC Small Business Finance, to establish a loan program in the United States to help alleviate the shortfall in cash flow for small businesses. Capital provided to the CDFI will be offered at a below-market interest rate.
“COVID-19 is causing critical health, social and economic ramifications throughout the world,” Julius Robinson, head of corporate social responsibility for the Americas at MUFG Union Bank, said. “Relief and recovery from the global pandemic will require an extraordinary effort across sectors, including business, government, nonprofits and others. Small businesses in particular are in dire need of assistance. As a financial institution that is active in this space, we are uniquely positioned from a capital perspective to help fund both near-term and longer-term recovery efforts.”
