Initiative to Drive Economic Opportunities Through Loans, Grants, and Investments with a Strong Focus on California and Other Key U.S. Markets
NEW YORK--(BUSINESS WIRE)--Nov. 20, 2024--
HSBC and the National Community Reinvestment Coalition (NCRC) announced a four-year, $25 million community growth initiative today, as part of HSBC’s broader strategy to drive responsible banking practices and promote financial equity across its U.S. 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:
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HSBC has committed $10 million in loan subsidies to support homebuyers, particularly in low- and moderate-income, diverse and underserved communities.
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$3.5 million of these subsidies will be allocated to certain California markets to address specific community development needs.
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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.
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HSBC will make a $6 million donation to NCRC to support its efforts in building strong, resilient communities across the nation.
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HSBC also will dedicate $1 million towards community engagement aimed at expanding economic opportunity and ensuring greater financial inclusion in HSBC’s current U.S. operating markets.
Unlike typical Community Benefits Agreements (CBAs) attached to bank merger proposals, this $25 million, four-year partnership between HSBC and the 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.
“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 the NCRC reflects our shared commitment to fostering economic resilience and opportunity in communities across the U.S., and we are honored to support these efforts through our loans, investments and grants.”
“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.”
About HSBC
HSBC Holdings plc
, the parent company of HSBC, is headquartered in London. HSBC serves customers worldwide from offices in 60 countries and territories. With assets of US$3,099bn at 30 September 2024, HSBC is one of the world’s largest banking and financial services organizations.
HSBC Bank USA
, National Association (HSBC Bank USA, N.A.) serves customers through Wealth and Personal Banking, Commercial Banking, Private Banking, Global Banking, and Markets and Securities Services. Deposit products are offered by HSBC Bank USA, N.A., Member FDIC. It operates Wealth Centers in: California; Washington, D.C.; Florida; New Jersey; New York; Virginia; and Washington. HSBC Bank USA, N.A. is the principal subsidiary of HSBC USA Inc., a wholly-owned subsidiary of HSBC North America Holdings Inc.
For more information, visit: HSBC in the USA
About NCRC
The National Community Reinvestment Coalition is a network of organizations and individuals dedicated to creating a nation that not only promises but delivers opportunities for all Americans to build wealth and live well. We work with community leaders, policymakers and institutions to advance solutions and build the will to solve America’s persistent racial and socio-economic wealth, income and opportunity divides, and to make a Just Economy a national priority and a local reality. This vision is the foundation of the Just Economy Pledge.
NCRC’s unique mix of research, investigations, investments, media, grant-making, training, advocacy, litigation, lending, convening and facilitation strengthens communities of historic disinvestment, expands economic mobility, holds public and private institutions accountable for their impacts, and informs local and national leaders, policymakers and the private sector. Learn more at ncrc.org.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20241120987675/en/
Media enquiries to:
Matt Kozar
HSBC US Communications
Matt.Kozar@us.hsbc.com
Alan Pyke
NCRC Director of Communications
apyke@ncrc.org
Source: HSBC
