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Truist Financial Corp. said Wednesday it has provided a $40 million “initial donation” to help create CornerSquare Community Capital. It is the largest investment in this sector from Truist, as well as legacy BB&T Corp. and SunTrust Banks Inc.
CornerSquare is designed to be a national nonprofit fund that will support selected community-development financial institutions. It will do that foremost by purchasing 25% of loans made by the financial institutions to historically underserved entrepreneurs.
The goal is helping the financial institutions increase their lending capacity with their existing capital, “ultimately expanding their reach and support to more small businesses in their operating areas.”
All of the funding through the program will be allocated to racially and ethnically diverse small business owners, women and individuals in low- and moderate-income communities. There will be a particular focus on Black-owned small businesses.
CornerSquare will operate as a subsidiary of the N.C. Rural Center, allowing that nonprofit to enhance its offerings of lending and small business development programs to markets across Truist’s territory.
The first phase of participating financial institutions are: Access to Capital for Entrepreneurs; Black Business Investment Fund; LiftFund; Natural Capital Investment Fund; Pathway Lending; and Washington Area Community Investment Fund.
