CHERRY HILL, N.J., June 2, 2021 /PRNewswire/ -- Today, TD Bank,
America's Most Convenient Bank® (AMCB), announced the
establishment of a $100 million
equity fund in support of minority-owned small businesses,
demonstrating its continued commitment to combat racial inequities
and provide opportunity in underserved communities. TD Bank's
equity fund will enable Specialized Small Business Investment
Companies (SSBICs) and Community Development Financial Institutions
(CDFIs) to provide small business loans and technical assistance,
ensuring these businesses have the resources they need to scale and
adapt long-term.
$75 million of the capital will be
funded through an SSBIC initiative, to be launched later this year.
SSBICs provide financial assistance to disadvantaged businesses
that are minority-owned, women-owned or are in areas of need.
$25 million will be specifically
earmarked for Black- and Latinx-owned small businesses, funded
through CDFIs, which are notably skilled in helping businesses in
communities of color secure financing.
"The pandemic has highlighted the depth of disparities that
exist in communities of color, especially as it relates to small
businesses, which serve as the backbone of our economy," said
Greg Braca, President and CEO, TD
Bank, AMCB. "The equity fund will ultimately infuse capital and
help stabilize these small businesses. But it's also about
contributing to job creation, stimulating economic development,
revitalizing these vibrant communities and, just as important,
breaking the cycle of disinvestment which systemically prevents
communities of color from thriving. Small businesses are the heart
of our communities – especially communities of color – and it's up
to us to help them succeed."
The equity fund stems from a larger commitment made by TD Bank
Group last year to advance racial equity for its Colleagues,
Customers and Communities. As part of that commitment, TD Bank
pledged to establish ways to better support minority-owned
businesses. Many of these businesses, particularly Black- and
Latinx-owned, were already experiencing financial fragility due to
underlying systemic challenges faced by underrepresented groups, a
situation that was exacerbated during the pandemic.
"We hope that our investment in these SSBICs and CDFIs serves as
a means of making access to capital more equitable for minority
small business owners. But our support doesn't end there," said
Michael Innis-Thompson, Head of
Community Lending and Development at TD Bank. "TD has always helped
sustain small business owners. For instance, we've long supported
CDFIs through philanthropic grants and access to capital for loans,
providing them with the liquidity to offer low-interest,
micro-loans to businesses that may not have qualified for
traditional lending due to barriers commonly faced, especially by
Black and Latinx small business owners. Additionally, TD will
continue its practice of referring customers to a CDFI when we
can't underwrite a loan, because at the end of the day, we want
these vital businesses to succeed – it's what differentiates us as
a purpose-driven bank."
About TD Bank, America's Most Convenient
Bank®
TD Bank, America's Most Convenient Bank, is one of the 10 largest
banks in the U.S., providing more than 9.5 million customers with a
full range of retail, small business and commercial banking
products and services at more than 1,220 convenient locations
throughout the Northeast, Mid-Atlantic, Metro D.C., the Carolinas
and Florida. In addition, TD Bank
and its subsidiaries offer customized private banking and wealth
management services through TD Wealth®, and vehicle
financing and dealer commercial services through TD Auto Finance.
TD Bank is headquartered in Cherry Hill,
N.J. To learn more, visit www.td.com/us. Find TD Bank
on Facebook at www.facebook.com/TDBank and on Twitter at
www.twitter.com/TDBank_US and
www.twitter.com/TDNews_US.
TD Bank, America's Most Convenient Bank, is a member of TD Bank
Group and a subsidiary of The Toronto-Dominion Bank of Toronto, Canada, a top 10 financial services
company in North America. The
Toronto-Dominion Bank trades on the New
York and Toronto stock
exchanges under the ticker symbol "TD". To learn more,
visit www.td.com/us.
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SOURCE TD Bank