$729 million invested in the Buffalo market to support community under initial plan
Building on early fulfilment of its groundbreaking $16.5 billion community benefits plan, KeyBank announced it will increase its commitment to $40 billion. The investments will continue focus on economic access and equity for underserved communities and populations.
Launched in 2017, the National Community Benefits Plan surpassed its $16.5 billion goal in 2020 by delivering more than $18 billion in lending and investments across its footprint. This includes $729 million of investments in the Buffalo market, supporting small business and home lending in low- and-moderate income communities, affordable housing and community development projects, and philanthropic efforts targeted toward education, workforce development, and safe, vital neighborhoods.
Highlights from the first four years of community investment in Buffalo include (as of Dec. 31):
√ KeyBank invested more than $281 million in affordable housing and community development projects in Buffalo, including developments such as Elim Townhomes, consisting 30 townhomes in located in five newly constructed residential buildings; and Alberta Place, consisting of 46 units of newly constructed senior apartments for residents ages 55-plus in Amherst.
√ KeyBank originated $150 million in small business loans to businesses that are part of low- and-moderate income communities. In Buffalo, this includes businesses such as Global Horizons Enterprises, an automotive supply company that provides brake products for the muscle car, classic truck and street rod markets.
√ KeyBank provided $270 million in mortgage lending to low- and moderate-income communities in and around Buffalo.
√ KeyBank made $28.48 million in transformational philanthropic investments in neighborhoods in Buffalo. Support included a $2 million grant to support “Say Yes to Education” Buffalo’s endowment campaign, aimed at ensuring scholarship availability for eligible students, and a $500,000 grant to the Buffalo City Mission’s “Next Century Capital Campaign” to fund its new one-stop community center, the Alfiero Family Center of Hope and Promise.
Through its expanded commitment, KeyBank’s aggregate investments nationwide under the community benefits plan will include:
√ $36 billion – economic equity & inclusion – KeyBank will continue its commitment to providing affordable housing, mortgages, small business lending and transformative philanthropy throughout the markets where it does business. In addition, KeyBank plans to support homeownership by investing in down payment assistance.
A press release noted, “From hiring and career development to increasing spend with diverse suppliers, KeyBank will continue its longstanding focus on diversity, equity and inclusion inside and outside of the company. KeyBank will also build partnerships with CDFIs focused on serving minority-owned businesses and will develop and deliver financial education in minority and LMI communities.”
√ $4 billion – renewable energy & sustainability – Since 2012, KeyBank has made more than $15 billion in renewable energy investments and was a top provider of renewable energy financing in North America in 2019 and 2020. The updated commitment will include this long-standing focus to increase KeyBank’s renewable energy financing, as well as accelerating Key’s efforts to reduce the company’s environmental footprint.
KeyBank also announced it has received its 10th consecutive “Outstanding” rating from the office of the comptroller of the currency for reaching the highest standards of the Community Reinvestment Act. The CRA requires banks to meet the credit needs of low- and moderate-income (LMI) communities across America. KeyBank is one of the only U.S. national banks to be rated “Outstanding” by the OCC for 10 consecutive review periods, since the act's passage in 1977.
To implement the community benefits plan, KeyBank will work with community leaders and organizations to develop specific plans for each market it serves across 15 states. For more information, visit www.Key.com/Community.
KeyCorp Chairman, CEO and President Chris Gorman said, “Corporate citizenship matters; it matters for our communities, for our clients, and for our colleagues. Delivering on the commitments of our community benefits plan has brought access to capital for neighborhoods and neighbors who have often faced unfair barriers to financial support. Receiving a 10th consecutive ‘Outstanding’ rating for exceeding the requirements of the Community Reinvestment Act serves as affirmation that KeyBank’s approach is the right one – but we recognize the work isn’t finished.
“Doing our part to address social justice and racial equity, increasing environmental concerns, and an international pandemic with disproportionate impact on low- and moderate-income communities is both an opportunity and an obligation. Creating shared value with the communities we serve means facing head-on the issues we have long been working to address. These systemic issues must be addressed collectively – inside and outside our company – to drive the outcomes we want to create.”
KeyCorp Chief Diversity, Equity and Inclusion Officer Greg Jones said, “While 2020 has brought significant challenges to our communities and a collective awakening about the injustices people of color face every day in America, these challenges have presented each of us with opportunities to take action and influence change. Through the national community benefits plan, we are committed to addressing these issues in ways that provide both comprehensive and sustainable social, racial and economic solutions. Whether it is providing access to affordable housing, supporting local small businesses, or increasing representation within KeyBank’s executive ranks, the extended plan is designed to build upon our strong foundation and create lasting change in our communities.”
KeyBank Regional Sales Executive and Buffalo Market President Gary Quenneville said, “KeyBank has a longstanding commitment to Buffalo and Western New York, home to our northeast regional headquarters. We know this region and have a proven track record of helping clients and communities thrive. KeyBank will work closely with local leaders and organizations in Buffalo and its surrounding communities to develop comprehensive solutions to the pressing issues of economic disparity, racial equity, and climate change.”
For more information, visit https://www.key.com/. KeyBank is Member FDIC.