TD Bank on June 2 announced the establishment of a $100 million equity fund in support of minority-owned small businesses.
The bank’s equity fund will enable Specialized Small Business Investment Companies (SSBICs) and Community Development Financial Institutions (CDFIs) to provide small business loans and technical assistance, ensuring these businesses have the resources they need to scale and adapt long-term.
$75 million of the capital will be funded through an SSBIC 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. $25 million will be specifically earmarked for Black- and Latinx-owned small businesses, funded through 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 Greg Braca, president and chief executive officer, TD Bank, AMCB in a prepared statement. “The equity fund will ultimately 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.”