TD Bank has established a $105 million equity fund in support of minority-owned small businesses.
The Cherry Hill, New Jersey-based bank plans to invest $75 million in specialized small-business investment companies (SSBICs) that is intended to assist minority- and woman-owned small businesses, as well as those that operate in underserved communities. TD has earmarked the remaining $30 million specifically for Black- and Hispanic-owned businesses to be funded through community development financial institutions (CDFIs), which it says are “notably skilled” at serving businesses in communities of color.
Michael Innis-Thompson, head of community lending and development at TD, said funds are going largely to Black and brown businesses, and the bank will focus distribution on areas in its footprint that have the largest minority population centers — Florida, Boston, Philadelphia, New York, New Jersey and Washington, D.C. While he didn’t offer a specific amount that would be invested in the South Florida area, Innis-Thompson said that markets where it has the highest deposit market share will get a higher proportion.