Cherry Hill-based TD Bank announced a three-year Community Impact Plan, committing to providing an estimated $20 billion to spark economic opportunities for low- and moderate-income, diverse and underserved communities across the bank’s U.S. presence in 15 states, obviously including New Jersey, and Washington, D.C.
This plan, developed with insight from the National Community Reinvestment Coalition, will support lending, philanthropy, banking access and other activities for the benefit of diverse and underserved communities, including:
- $10 billion in support of residential lending for LMI and/or minority borrowers;
- $7.5 billion in community lending and investment;
- $2.8 billion in small business lending;
- $70 million in Community Reinvestment Act-related philanthropy.
TD Bank CEO Leo Salom said the program matches the mission of the company.
“At TD Bank, we know our success is tied directly to the people and the communities we serve. When they flourish, we succeed,” he said. “One of our primary objectives as a purpose-driven bank is to help power economic opportunities that help low- and moderate-income, diverse and underserved communities achieve their financial goals. Our Community Impact Plan is designed to achieve that vital role as we build on TD’s long-term community focus.”
TD officials said the Community Impact Plan expands TD’s mission to positively impact social and economic outcomes for all who live in the communities it serves and enhance financial inclusion for diverse and underserved individuals and businesses.
National Community Reinvestment Coalition President Jesse Van Tol said his group was thrilled that TD Bank was taking these steps.
“I’m glad to see TD’s leadership demonstrate a continued commitment to the values and principles that have guided our conversations to date and look forward to more strong collaboration in future,” he said.
“Every bank should set ambitious goals for supporting underserved communities. And we’re pleased to provide strategic insights to advance this strategy. Those efforts can only be effective if they are informed by the input of community leaders like NCRC and our members. TD listened and then delivered this new Community Impact Plan to help ensure its investments and programs are aligned to community needs.”
A look at TD Bank’s Community Impact Plan:
- Mortgage lending and consumer products: TD Bank will enable affordable homeownership by providing $10 billion in residential loans and liquidity to the residential lending market. This includes first-time homebuyer and home equity loans for LMI and minority borrowers, and in LMI and majority-minority census tracts, especially in the Boston, Baltimore, D.C., New York, Miami and Philadelphia markets. To support this goal, the bank will continue offering TD Home Access, a Special Purpose Credit Program, and other affordable residential lending products with low down payments and consumer-friendly terms. The bank also will continue offering and enhancing retail products and services designed to meet the needs of economically vulnerable consumers.
- Small business support: The plan builds on TD’s ongoing commitment to support the critical role small businesses play in local economies by offering an estimated $2.8 billion in credit to businesses with less than $1 million in annual revenue, with a focus on minority- and women-owned businesses and those in LMI areas. TD Bank will create a lending Special Purpose Credit Program for small businesses that are registered Minority Business, women-owned or veteran-owned enterprises.
- Community development loans and investment: TD Bank will provide $7.5 billion in community development loans and other investments to support economic development activities and affordable housing projects, such as special rental housing for veterans or LGBTQ seniors, within TD markets.
- CRA-related philanthropy and sponsorships: The TD Office of Charitable and Community Giving will direct $70 million in CRA-related philanthropy over the next three years in addition to its annual giving, with 75% of all giving supporting diversely led organizations. This commitment includes the TD Charitable Foundation’s first Capacity Building Fund for organizations with annual budgets of less than $2 million. The $1.75 million fund will support general-purpose operations and expenses to help nonprofits remain open to serve their clients.
- Banking access: Consistent with TD’s goal to make banking accessible to all customers, the bank will seek to open approximately 15 locations in LMI and/or majority-minority markets, subject to any regulatory approvals. This includes creating additional community-centered stores, which feature dedicated space that can be used for financial education workshops or nonprofit meetings.
