TD Bank Unveils Unity fund worth $100M to support minority-owned businesses.
TD Bank recently announced they will be establishing a new $100 million equity fund that will provide financial support to minority-owned businesses. The initiative is intended to address racial inequalities and also support communities of color.
The fund will allow Specialized Small Business Investment Companies or SSBIC’s to offer loans and other assistance to ensure these businesses have the necessary resources needed to effectively scale their businesses.
According to the Director of Community Lending and Development at TD, Bank Michael Innis-Thompson, the goal of the firm’s investments in SSBICs and CDFIs is to increase accessibility to capital funding for minority-owned businesses. Thompson goes on to say that TD bank has always supported small business owners, and that is what sets TD apart as a purpose-driven bank.
Thompson also mentions that TD Bank is also working to be the bank of choice for Latin and Black borrowers.
Many businesses have suffered from loss of customers and forced shutdowns due to the pandemic. TD hopes their fund will work to rectify these circumstances and keep
minority-owned businesses open for good.
A press statement from TD Bank President and CEO Greg Braca disclosed that the fund will provide capital to minority-owned businesses and stimulate the economy while strengthening communities and breaking the disinvestment cycle that hinders businesses and communities of color from thriving.
The fund will allocate $75 million to fund an SSBIC initiative. The $25 million left over will be used to fund small minority-owned businesses.
TB bank has also been directing efforts toward markets with large Black and Hispanic communities such as Washington, Philadelphia, and Miami.