Ivanka Trump, President Trump’s jobs czar, and Treasury Secretary Steven Mnuchin have rallied American banks to pony up $1.6 billion to help small businesses and Main Street Americans crushed by the coronavirus.
Initiated at a mid-March meeting with banking leaders at the White House, several this week pledged millions of dollars of help to supplement the billions of dollars set aside by the administration and Congress for programs such as the Payroll Protection Plan.
Financial giants Bank of America, Goldman Sachs, JP Morgan Chase, Visa, Citibank, Wells Fargo, Mastercard, and smaller community outfits — Community Spirit Bank of Alabama and Mississippi, Michigan’s Grand Rapids State Bank, and Southern Bancorp of Arkansas — were part of a White House conference call Tuesday to announce their private help and outline their focus with the payroll plan.
“We are all in this fight together, as a country and as a nation. And so we called upon each of you to do more and to assist us in what is a really herculean effort,” said Ivanka Trump.
And, to her father, she said, “Anyone who knows you knows the heart you have for America’s small businesses — over 30 million amazing innovators and entrepreneurs that employ over 60 million people. So, just absolutely incredible.”
Trump said that the new effort that includes private loans and forgiveness programs was “born out of” her nationwide job training campaign called Pledge to America’s Workers, which had led to the creation of 5.3 million new jobs.
The president told the group, “As our nation wages the war against the invisible enemy, we’re grateful for the many ways in which your companies have answered the call to join our national endeavor. Thank you for donating tens of millions of dollars.”
Some details from a White House fact sheet:
- Goldman Sachs: $500 million in capital and critical infrastructure to Treasury-certified Community Development Financial Institutions to help small business.
- Bank of America: $250 million in capital and $10 million in philanthropic grants to Community Development Financial Institutions. These investments will expand access to capital to more small businesses and not-for-profits. Announces additional support for consumer and small business clients experiencing hardship from the impact of COVID-19. Commits $100 million in support of communities around the world impacted by the coronavirus pandemic.
- JP Morgan Chase: $150 million program to help community partners receive capital for underserved small businesses and nonprofits, focusing on underserved entrepreneurs including women and minority owners and the hardest hit communities. $50 million in philanthropic support to address the immediate public health and long-term economic challenges for small business and communities from COVID-19.
- Wells Fargo Foundation: Committed $175 million to support non-profits at the federal, state, and local levels helping people impacted by COVID-19. Including $10 million to support small businesses.
- Citibank: Waivers on monthly service fees and remote deposit capture, and waive penalties for early CD withdrawals; suspended foreclosures and evictions for 60 days through its subservicer Cenlar and is providing forbearance programs for student loans through its subservicer Firstmark.
- The Visa Foundation is committed to two programs totaling $210 million to support small and micro businesses, aligning with the Foundation’s long-term focus on women’s economic advancement and inclusive economic development, and to address an urgent need from local communities following the spread of COVID-19.
- Mastercard: $250 million over the next five years to small businesses in the United States and other markets where Mastercard operates, supporting the financial security and vitality of businesses and their workers.
- Grand Rapids State Bank: Modifying loan terms to create a period of interest only payments, deferring payments for up to six months, creating a period of time where there is total temporary relief from payments.
- Community Spirit Bank: Committed to 90-day payment deferral programs for anyone affected by the virus, allowing for deferment of both principal and interest for these customers on any affected loan.
Author: Paul Bedard
Source: Washington Examiner: Ivanka Trump lassos $1.6B for virus-slammed small companies
