A plan covering 10 states will see $30 billion invested into select communities thanks to an agreement signed between Fifth Third Bancorp and the National Community Reinvestment Coalition (NCRC) this week.
The plan will include lending for community development ($9 billion), mortgages ($11 billion), small businesses ($10 billion) and micro-lending, as well as investment potential. Spread out over the course of five years, the development plan expands the $27.5 billion commitment Fifth Third announced in Feb. 2016. It is set to cover all the communities in which Fifth Third maintains a presence, up through 2020.
“Our objective is to ensure that, together with the NCRC, we meaningfully impact the communities we serve. We appreciate and value the collaboration with John Taylor and all the NCRC member organizations who met with us to enable the expansion of our original commitment in ways that will best improve lives,” Greg D. Carmichael, Fifth Third Bancorp president and CEO, said.
While providing for product innovation and down payment assistance, the payout also includes a commitment to avoiding imposition of minimum loan amounts, improving the small business lending process and providing community development loans and investment. The latter comprises not only affordable housing initiatives, but also a revolving loan fund and community development resources, among others.
John Taylor, NCRC president and CEO, said the plan was detailed, substantive, and dedicated to ensuring commitment to those areas with the greatest community need. He also noted rigorous accountability in all aspects of the process.
The greatest need clause to which he refers includes $158.4 million set aside for community initiatives aimed at advocating for low and moderate-income communities, as well as more physical development in those areas.