PNC Commits $88B to Low-Income and Minority Communities
PITTSBURGH – PNC Financial Services Group will launch next year its $88 billion Community Benefits Plan, an effort that includes $26.5 billion in small-business lending. The plan focuses on providing loans, investments and other financial support to low- and moderate-income people and communities, people of color and “other underserved individuals and communities” through 2026.
In the four-year scope of the plan, PNC will originate loans to small businesses in low- and moderate-income community, census tracts where the majority of residents are people of color, businesses with less than $1 million in revenue and small farms.
“As a Main Street bank, we believe that our success will be proportional to the prosperity we help create for our stakeholders,” said PNC’s president and CEO, William S. Demchak, in a statement. “This plan reflects that belief and builds on our longstanding commitment to provide economic opportunity for all individuals and communities we serve, as reflected in PNC Bank’s and BBVA USA’s overall ‘Outstanding’ Community Reinvestment Act ratings in each of our organizations’ most recent evaluations.”
Also included in the plan are commitments of:
- $47 billion in residential mortgages and home equity loans to people of color and those in low- and moderate-income communities
- $14.5 billion in community development loans and investments across all markets, including at least $400 million for community development financial institutions.
- Increase PNC’s charitable giving by $500 million, including sponsorships and philanthropic grants. That figure includes the continuation of soon-to-be-acquired BBVA USA’s commitments.
The Community Benefits Plan was developed in connection with the anticipated regulatory approval of PNC’s acquisition of BBVA USA Bancshares Inc. Aiding its creation was the National Community Reinvestment Coalition – which brought to the table more than 150 member organizations across the PNC and BBVA footprint – National Diversity Coalition, the Greenling Coalition, the California Reinvestment Coalition, and Faith and Community Empowerment.
“As we consulted with numerous groups across the country, we learned the concerns that are top of mind to our communities: focusing on home ownership as a foundation of wealth creation for current and future generations; finding solutions to help the unbanked and underbanked who have suffered disproportionately during this pandemic; and supporting small businesses and entrepreneurs by providing access to capital and credit on par with the access enjoyed by more affluent segments of our society,” said Richard Bynum, chief corporate responsibility officer for PNC.
To better meet the needs of unbanked and underbanked communities, PNC will add 20 branches and 25 ATMs in low- and moderate-income areas, as well as 10 mobile banking units.
PNC also expects to increase its spending with “diverse suppliers” by at least 20% over the course of the four-year plan.
Published by The Business Journal, Youngstown, Ohio.