The National Community Reinvestment Coalition (NCRC) and HSBC on Wednesday announced a four-year, $25 million community growth initiative, as part of HSBC’s broader strategy to drive responsible banking practices and promote financial equity across its US footprint and designed to address concerns raised by NCRC.
The partnership, which begins January 2025, aims to expand economic opportunities in low- and moderate-income, diverse and underserved communities through a combination of loan subsidies, community development grants and philanthropic donations. HSBC’s investment will provide essential support to neighborhoods where financial services have historically been more challenging to access.
Highlights of this agreement:
- HSBC has committed $10 million in loan subsidies to support homebuyers, particularly in low- and moderate-income, diverse and underserved communities.
- $3.5 million of these subsidies will be allocated to certain California markets to address specific community development needs.
- HSBC and NCRC will each oversee $4 million in grants to Community Development Financial Institutions (CDFIs) and community-based nonprofit organizations that deliver critical services, such as credit counseling, financial education and homeownership support, to residents in majority Black and Hispanic communities.
- HSBC will make a $6 million donation to NCRC to support its efforts in building strong, resilient communities across the nation.
- HSBC also will dedicate $1 million towards community engagement aimed at expanding economic opportunity and ensuring greater financial inclusion in HSBC’s current US operating markets.
Unlike typical Community Benefits Agreements (CBAs) attached to bank merger proposals, this $25 million, four-year partnership between HSBC and NCRC represents a distinct approach to supporting underserved communities. In recent years, NCRC raised concerns about lending practices, and HSBC responded by engaging in discussions with NCRC to ensure its community investment strategy aligns with the needs of the communities it serves. These collaborative efforts have culminated in the partnership announced today, which reflects HSBC’s commitment to high-impact initiatives in diverse, underserved communities.
“I am glad that we were able to come to an agreement and partner to deliver real and lasting impact for communities of color,” said Jesse Van Tol, President and CEO of NCRC. “What began as a dispute turned into a conversation that will now expand a powerful bank’s work on behalf of lower-income communities, communities of color and other places that the whole banking industry has historically overlooked. I look forward to continuing our collaborative, accountability-driven partnership as we now implement the ideas we identified: a combination of loan subsidies, grants and direct financial support will help bridge the gap to financial inclusion for thousands of families.”
“As one of the largest financial institutions in the world, HSBC is proud to play a role in helping advance the communities we serve around the world,” said Michael Roberts, HSBC US and Americas CEO. “Our partnership with NCRC reflects our shared commitment to fostering economic resilience and opportunity in communities across the US, and we are honored to support these efforts through our loans, investments and grants.”
Photo by Sergey Zolkin on Unsplash
