Patch, October 12, 2020, TCF Bank and Gary Torgow Announce Loans for Minority Businesses
The stark inequalities facing POC across the United States has garnered large crowds to fix this injustice immediately. Mayor of Detroit, Mike Duggan called on businesses to step up and help fight systemic racism. Two businesses who stepped up to the plate were TCF Bank and Gary Torgow. These two businesses have pledged one billion in loans for minority businesses and underserved communities.
Lending practices have long favorited white business owners. In a study about discriminatory banking practices, the National Community Reinvestment Coalition found that black and Hispanic men who applied for loans faced more scrutiny than their white counterparts, despite having stronger applications. This is backed up by statistics from the US Federal Reserve. Their data shows that banks are twice as likely to reject loan applications from black business owners. Black borrowers also have more difficulty obtaining personal and homeowner loans.
To reverse this trend, TCF Bank is starting a new program that focuses on businesses owned by women and minorities. They’re investing $1 billion to fund loans that will range from $10,000 to $1 million. In addition, TCF is adding $10 million to the Heart and Home Initiative. This program helps low-income people with closing costs and other fees associated with buying a house. They will continue to fund COVID-relief loans for businesses in Wayne County.
According to Gary Torgow, an executive at TCF Bank, they’re creating these programs because of the racial unrest in the wake of George Floyd’s death. Floyd, an unarmed man who died while in police custody, sparked an international conversation about unfair, racist practices. This conversation has revealed systemic biases in many areas, including bank lending. By instituting this billion-dollar initiative, TCF Bank will help more people from all walks of life attain the American dream — running a successful business and owning a home.
