Capital One Commits $286bn to Underserved Communities

Capital One has launched a community benefits plan that will commit more than $286 billion in lending, investment and philanthropy over the next five years.

The program forms part of the deal of Capital One’s proposed acquisition of Discover Financial for $25.3 billion, which was first announced in February.

The community benefit plan aims to enhance economic opportunities for underserved consumers, including those in low- and moderate-income neighborhoods, rural areas and communities of color.

It is designed to broaden access to credit to enable small business owners to sustain and expand their business, while also increasing credit accessibility for low- and moderate-income consumers.

The plan will also allocate funds towards infrastructure improvements to enhance access to safe and affordable housing, develop robust local infrastructure for essential service delivery and support the development of schools, civic centers and healthcare facilities.

To improve housing opportunities, the plan includes a $35 billion commitment to bolster affordable housing initiatives for low- and moderate-income communities and individuals.

It will also feature a $25 million increase in new grants and pro bono initiatives aimed at supporting programs that enable homeownership, including down payment assistance, funding for repairs, and pre-purchase and foreclosure prevention counseling.

The plan was developed in partnership with the National Association for Latino Community Asset Builders, NeighborWorks America, the Opportunity Finance Network and the Woodstock Institute.

Horacio Mendez, president and CEO of Woodstock Institute, said: “We do not need another empty promise, a splashy marketing campaign, or re-packaging existing activity as something new.

“Woodstock Institute came to the table to challenge Capital One to develop a community benefits plan that moves the industry forward and sets an ambitious standard for others to follow.”