U.S. Bancorp Announces $100 Billion Community Benefits Plan
Five-year plan focuses on supporting equitable access to capital for low- and moderate- income communities and communities of color.
The CBP builds on
“Banks are the economic engines of our communities. As such, we can make meaningful and significant impacts in supporting the ability of low- and moderate-income (LMI) communities and communities of color to access capital and build wealth,” said
The CBP was informed by multiple listening sessions with more than 200 community groups participating as well as a public hearing organized by regulators. Listening sessions were organized with the support of NCRC, CRC and the Alliance to End the Racial Wealth Gap. The plan focuses on foundational components of community and economic development where the company can have the most impact:
- Access to Homeownership
- Small Business Access to Capital & Technical Assistance
- Community Development Lending & Investment
- Philanthropy & Community Service
Branch Services in
- Environmental Stewardship & Commitment
- Advancing a Diverse & Equitable Workforce
- Diverse Segment Outreach
- Supplier Diversity
- Plan Implementation & Accountability
“We are grateful for the time 208 organizations took to participate in the listening sessions. Their insights and perspective were critical to helping us understand where we can improve financial outcomes for underserved communities through our products, investments and service to the community,” said Cecere. “We look forward to working with community leaders to implement equitable and effective solutions for the communities that need it most.”
The collective input from the community serves as the foundation for
Providing at least a 20% increase in mortgage lending units nationally and a 30% increase in
Californiato LMI borrowers, LMI communities and communities of color over five years.
Increasing lending to small businesses and small farms by 15% nationally and 25% in
Lending and investing increases of over 40% nationally and over 50% in
Californiain community and economic development, affordable housing, environmental and social impact lending and investments during the five-year period with a focus on racial equity and access to credit for organizations and developers of color.
- Small Business – Adopting, enhancing and expanding MUFG Union Bank’s SPCP, known as the Business Diversity Lending Program.
- Mortgage – Developing a mortgage SPCP in consultation with regulators and community groups, which will include down payment assistance for participating borrowers.
Affordable Housing Development– Providing access to lending capital for minority-led/owned developers in support of affordable housing projects.
“We appreciate the commitment from
“Union Bank and
Notably, branches will continue to play an important role in
Opening five new branches in LMI or middle-income Majority Minority (MMT) communities in
Californiaover five years.
Opening or preserving five additional branches in LMI or MMT communities in
Californiaover five years decisioned with input from CRC.
Upgrading functionality and accessibility of
MUFG Union Bankand legacy U.S.Bank ATM’s that will also service MUFG Union Bankcustomers.
Californiacommunity groups to create five residencies located in nonprofits to provide access to a knowledgeable banker to help with small business lending and helping individuals improve their credit scores, savings and financial confidence.
- Adopting MUFG Union Bank’s high school and community college branch program and investing further to support financial education outreach.
Prior to reaching a decision on closing any branch in an LMI area, the bank will analyze the demographics of the neighborhood, consider community input and consider alternatives to closure as well as alternative delivery options to minimize the impact of the closure.
“We know that when we organize, we win. This agreement represents months of hard work and is a win for LMI neighborhoods in
Following the close of the transaction,
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