NEW YORK -- To help inspiring small business owners like Richard and Charles, and so many others, TD Bank recently announced the establishment of a $100 million equity fund in support of minority-owned small businesses.
The goal is to combat racial inequities and provide opportunity in underserved communities, while also providing small business loans and technical assistance.
The equity fund stems from a larger commitment made by TD Bank Group last year to advance racial equity for its Colleagues, Customers and Communities.
Three quarters of the capital ($75 million) will be funded through a Specialized Small Business Investment Companies (SSBICs) initiative, to be launched later this year. SSBICs provide financial assistance to disadvantaged businesses that are minority-owned, women-owned or are in areas of need.
The other $25 million will be specifically earmarked for Black- and Latinx-owned small businesses, funded through Community Development Financial Institutions (CDFIs), which are notably skilled in helping businesses in communities of color secure financing.
"The pandemic has highlighted the depth of disparities that exist in communities of color, especially as it relates to small businesses, which serve as the backbone of our economy," said Michael Innis-Thompson, Head of Community Lending and Development at TD Bank.
Michael added, "The equity fund will infuse capital and help stabilize these small businesses. But it's also about contributing to job creation, stimulating economic development, revitalizing these vibrant communities and, just as important, breaking the cycle of disinvestment which systemically prevents communities of color from thriving. Small businesses are the heart of our communities - especially communities of color - and it's up to us to help them succeed."