Community Benefits Plan Six Month Update: PNC's $88 Billion Commitment Comes to Life
NORTHAMPTON, MA / ACCESSWIRE / October 4, 2022 / Under the Community Benefits Plan started Jan. 1, 2022, The PNC Financial Services Group allotted $47 billion in financing for residential mortgage and home equity lending, $26.5 billion in small business loans, $14.5 billion for community financing loans and investments, and an additional $500 million in charitable giving over a four-year period beginning in 2022. Six months into its ambitious plan, PNC has deployed nearly $17.4 billion* in capital to advance economic opportunities for low and moderate-income (LMI) individuals, communities and people of color.
$13.3 Billion to Expand Homeownership, Economic Mobility
Access to affordable housing and the ability to purchase a home are foundational to economic prosperity and the building of generational wealth. Central to PNC's efforts to boost homeownership among people and communities of color is its ongoing commitment to offer an expanded first-time homebuyer grant program, dedicated credit assistance and $47 billion in home loans.
To support this expansive homeownership goal and to address some of the unique lending and credit needs of minority borrowers and unbanked or underbanked homebuyers, PNC has increased the number of Affordable Lending Minority Loan Officers (MLO) focused on affordable home lending from 8 to 39, with plans to hire and retain additional diverse banking officers by year end.
The Affordable Lending group also expects to increase its first-time homebuyer down-payment grant assistance to help reach more underserved residents and communities. The first-time homebuyer grants help qualified borrowers cover down payment and closings costs fees.
And PNC's efforts to increase economic inclusion and generational wealth building are making a difference across markets. In the first six months, PNC's Community Benefits Plan totaled $13.3 billion in residential mortgage and home equity loans, impacting more than 11,000 LMI and minority borrowers.
$2.7 Billion to Advance Small Business and Empower Entrepreneurs
Small businesses are the lifeblood of the U.S. economy. PNC's Plan builds on our existing commitment to boost small business growth with $26.5 billion in loans and equity investments dedicated to supporting business development and minority entrepreneurs in LMI neighborhoods coast to coast.
In Baltimore, for example, we've committed $3 million in low-cost capital to Baltimore Community Lending (BCL), a Community Development Financial Institution (CDFI) dedicated to revitalizing Baltimore's underinvested neighborhood. BCL offers flexible financial assistance to small business owners and real estate developers who commit to building impactful community development projects throughout the city.
Beyond expanded investment into minority and community lenders, PNC also continues to help address the challenges of building a small business with the launch of the Minority Business Development Group, a Business Banking resource team dedicated to developing and accelerating minority-owned businesses.
PNC's corporate, small business and retail banking groups have worked together to deploy $2.7 billion in lending and investments to support small businesses (those generating less than $1M in annual revenues) and owners and operators in communities of color.
$1.33 Billion Supports Community Revitalization and Economic Development
PNC is also accelerating investments in affordable rental housing and economic revitalization initiatives in LMI neighborhoods and communities of color. In 2022, we continue to create more economic equity and inclusion in our communities by delivering nearly $1.33 billion of the $14.5 billion in equity and debt investments and loans allocated under the Plan to support community development and revitalization initiatives.
PNC Tax Credit Solutions is devoted to preserving and bolstering affordable housing supply and spurring economic development. The dedicated business invests long-term capital into projects that address critical infrastructure needs in LMI communities, such as housing, job creation and business development. As an industry leader, PNC Tax Credit Solutions invests in, sponsors, and syndicates funds investing in Low Income Housing Tax Credits (LIHTC), New Markets Tax Credits (NMTC), Historic Tax Credits (HTC) and affordable housing preservation projects.
Through a combination of Historic Tax Credits and New Markets Tax Credit equity investments, PNC Tax Credit Solutions business is helping developers in Toledo, Ohio transform a vacant U.S. Postal Service office downtown into the Toledo Innovation Center, a 106,000 square foot technology training center and shared office workspace.
Set to open in 2023, the renovated and renamed Toledo Innovation Center will offer low-income residents training and paid apprenticeships in technology technology-focused industries. The development also will provide entrepreneurs with open workspace to launch or expand their businesses. Over the next seven years, the project's developers expect to create more than 2,000 jobs in technical careers and generate more than $20 million in annual payroll revenue.
In Wheeling, WV, developer Woda Cooper Companies, Inc. tapped into PNC's extensive experience blending equity investment and lending products to help bring a new four-story, 46-unit rental complex downtown. PNC's Community Development Banking group provided more than $6 million in Opportunity Zone equity financing and construction lending to help fund The Doris on Main. With completion expected in mid-2023, the multifamily apartment development will expand housing options affordable to working families and residents downtown and help drive retail and restaurant growth in surrounding, underinvested communities.
Expanded Access to Products and Services
To help reach its goal of providing expanded access to PNC's products and services, the bank recently opened four branches and expanded its fleet of mobile branches to reach lower-income families in unbanked or under-resourced areas, where residents often rely on payday lenders and other high-cost resources for financial support. To date, PNC has 11 mobile branches serving communities across the country, with additional fleet expansion expected by year end.
In addition to introducing expanded services under the Plan, PNC has continued to make significant strides in delivering responsible retail banking products to help customers reduce or eliminate taxing or excessive bank fees. As part of a larger effort to help customers navigate and avoid over draft fees, PNC offers Low Cash Mode®. Additionally, PNC recently eliminated non-sufficient (NSF) fees and expanded customer access to more than 41,000 surcharge-free ATMs.
Creating Impact for Communities
Originally announced in Oct 2020 as a $1 billion pledge to help challenge systemic racism, PNC's initiative to advance economic opportunity and entrepreneurship in Black and Brown communities has grown to $1.5 billion in grants and investments. In 2021, the PNC Foundation seeded the launch of The Howard University and PNC National Center for Entrepreneurship, with the goal of providing capacity-building resources, research and entrepreneurship education to the nation's network of 101 historically Black colleges and universities.
Since January, PNC has worked to invest in meaningful collaborations with several HBCUs and will continue to provide expanded capital and resources to help empower LMI communities as well as people and communities of color.
What's Next
As we continue our efforts to bring the Community Benefits Plan to life in our communities, we're also launching several market-driven initiatives throughout 2022 to promote actionable and accountable community engagement and investment.
Community Advisory Council - PNC has established an inaugural Community Advisory Council to help support execution of the Plan and provide insight into market-specific community issues. Comprised of seasoned community and economic development leaders from across PNC's markets, the Community Advisory Council meets semi-annually to provide ongoing oversight and invaluable feedback to help ensure PNC continues to implement impactful investment and lending initiatives in the communities we serve.
Community Leadership Symposium - PNC is committed to bolstering economic opportunity for low-and moderate-income communities by introducing new, actionable insights and evidence to the field. As part of this commitment, in collaboration with Urban Institute, PNC will host a best-in class annual Community Leadership Symposium. This annual event will be comprised of think tanks, community advocates, and industry experts representing community development across the US footprint and will be scheduled to take place in Pittsburgh, PA.
Blueprint for Opportunity - We rely on market leadership, and the expertise of advocates in the communities to guide PNC's efforts to bring empowering resources and transformative investments to the people and communities we serve. Moving forward, through a series of market-based initiatives, we're launching a comprehensive engagement campaign to share how we impact the individual communities we serve.
*As of June 30, 2022. PNC's ability to meet the defined CBP goals within the applicable time period is subject to market conditions, regulatory conditions as well as other risks, uncertainties and external factors which may fall outside of the company's control.
Contact Info:
Spokesperson: PNC Financial Services Group
Website: https://www.pnc.com/en/personal-banking.html
Email: info@3blmedia.com
SOURCE: PNC Financial Services Group
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