Delivering on equity pledge, TCF Bank unveils $1 billion loan commitment for minority communities and minority- and women- owned small businesses
Leading the call for companies to lean in to social justice, Detroit-based bank also commits $10 million for grants to help low-to-moderate income home buyers
DETROIT – Less than two months after pledging to take action for racial equality and social justice in the communities TCF Bank serves, the company today announced 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 5-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 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,” said TCF Executive Chairman Gary Torgow. “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 key 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 grant1 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 – about 2½ 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,” said CEO Craig Dahl. “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.”
In 2019, TCF and Chemical Bank merged, forming the largest Michigan-based bank. Construction on its new headquarters in the City of Detroit is underway. The bank has a long history of supporting its communities through corporate and philanthropic giving, volunteerism and strategic partnerships, including a $5 million commitment 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.
Since the COVID-19 pandemic, civil unrest, and 500-year flood in the Midland area, the bank has increased dramatically its community investment, including:
- match donations for Henry Ford Health System (MI) and M-Health Fairview (MN) 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;
1 Only available with a TCF Home Loans first mortgage or Detroit Home Mortgage loan; not available with all loan products. Program is limited to certain geographic areas. Owner-occupied principal residences only. Eligible Third Party costs: title insurance, settlement agent closing fee, appraisal, credit report, flood determination fee, recording fee. Eligible Lender Cost: processing fee. Not an offer, borrower must meet qualifications. Subject to loan program underwriting guidelines.
$700,000 in donations to organizations that offered programs and resources to underserved communities impacted by COVID-19.
About TCF: TCF Financial Corporation (NASDAQ: TCF) is a Detroit, Michigan-based financial holding company with $49 billion in total assets at March 31, 2020 and a top 10 deposit market share in the Midwest. TCF’s primary banking subsidiary, TCF National Bank, is a premier Midwest bank offering consumer and commercial banking, trust and wealth management, and specialty leasing and lending products and services to consumers, small businesses and commercial clients. TCF has approximately 500 branches primarily located in Michigan, Illinois and Minnesota with additional locations in Colorado, Ohio, South Dakota and Wisconsin. TCF also conducts business across all 50 states and Canada through its specialty lending and leasing businesses. To learn more about TCF, visit ir.tcfbank.com.
Cautionary Statement about Forward-Looking Statements: This release contains forward-looking statements about our future financial performance and activities. Because these forward-looking statements are based on our current intentions and expectations regarding the future, they are inherently subject to risks and uncertainties, and our actual future results and activities could differ materially from expectations. Forward-looking statements speak only as of the date made, and we do not undertake to update them to reflect changes or events that occur after that date. For information about factors that could cause our actual future results to differ materially from our expectations, refer to our reports filed with the Securities and Exchange Commission, including the discussion under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2019, and in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020 as filed with the Securities and Exchange Commission and available on its website at www.sec.gov.