TCF Bank and Gary Torgow Announce Loans for Minority Businesses

Racial inequality has become a huge issue in recent years. With protests raging across the country, more citizens are becoming concerned with leveling the playing field for all people. With this in mind, the mayor of Detroit, Mike Duggan, asked local businesses to step up. He challenged leaders to find ways to combat systemic racism both nationally and locally.

TCF Bank and Gary Torgow answered the call. They pledged to help minority and underserved communities. Now, they're making good on that pledge.

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.

No details have emerged yet on what TCF's requirements will be for this loan program. TCF claims that they will work out the underwriting for loans with each business individually. The loan program isn’t just for those in Detroit, either: business owners in Cleveland, Chicago, Minneapolis, and Grand Rapids will also be eligible.