“For TCF Bank, this truly difficult time that we are all going through requires new action and a new initiative to help tackle the systematic racism that has denied too much of their part of the American Dream, to own and fund a small business,” and own a house, ”Torgow said.
The TCF had previously invested $ 10 million in relief loans for Wayne County businesses facing financial hardship due to the COVID-19 pandemic.
“Today, we humbly reinforce our commitment to righting historic wrongs, with a lending program bold in size and ambition: a billion dollar pledge for minority communities and for small businesses owned by women and minorities, ”Torgow said.
Disproportionate denials have made it harder for black Americans to build wealth and help explain the financial instability that was highlighted during the pandemic.
Black families were prevented from creating wealth like their white counterparts were for much of the 20th century. thanks to racist housing policies. This inability to generate wealth has contributed to the economic disparities that exist in Detroit – and most major cities – today.
The lack of capital extends to black business owners. The New York Times reported in April that black business owners face barriers in obtaining government assistance for their business loans more often than white business owners.
Torgow couldn’t elaborate on exactly how TCF will handle underwriting requirements for business loans – which has always been a barrier for black business owners trying to get loans – but says TCF will try to sort out the issues. details with each applicable company.
These loan programs will be offered in cities like Grand Rapids, Minneapolis, St. Paul, Chicago and Cleveland. Torgow says it’s important to help people build capital in cities where the bank has a significant presence.
TCF is one of the 50 largest banks in the United States.