M&T Bank has launched a $43 billion Community Growth Plan to support low-to-moderate income families and neighborhoods, as well as people and communities of color, through loans, investments and other financial support.
The plan includes $23 billion in loans for home purchases, home equity and small businesses and another $20 billion for community development initiatives and affordable housing.
The investments will cover communities the bank currently serves, as well as those it will expand into following M&T’s proposed acquisition of People’s United Bank.
Rene Jones, M&T Bank chairman and CEO, said: "At its core, M&T is a bank with a deep commitment to serve our communities and make a difference in people's lives.
"We are also committed to taking action to help address inequities that have existed for years. This plan is another step in our journey to orient ourselves around what our communities need most."
The bank’s five-year plan has been developed in collaboration with the National Community Reinvestment Coalition (NCRC).
Since March, members of M&T’s leadership team and NCRC and its member organisations have met to consider how the bank can help to increase the flow of capital to historically underserved communities.
Among the key areas identified were community development lending and investing, homeownership and affordable housing, small business lending and counselling, financial support and services, multicultural banking, and access to services.
Other initiatives include providing a framework for increasing business opportunities for diverse suppliers, community development-focused philanthropy, investments supporting renewable energy and other programs totaling approximately $5 billion.
Last month, the Federal Deposit Insurance Corporation launched a $120 million fund to support low- and moderate-income minorities and rural communities. Anchor investors included Microsoft, Truist Financial and Discovery.