SANTA CLARA, Calif. and BOSTON – May 20, 2021 – SVB Financial Group (“SVB”) (NASDAQ: SIVB), the parent of Silicon Valley Bank, the bank of the world’s most innovative companies and their investors, today announced a proposed five-year, $11.2 billion community benefits plan that builds on its long-standing commitment toward helping small businesses, financing affordable housing, reinvesting in low- and moderate-income (“LMI”) communities and supporting the greater good through philanthropy and volunteering. The plan was developed in collaboration with the California Reinvestment Coalition (“CRC”), The Greenlining Institute, Massachusetts Affordable Housing Alliance (“MAHA”) and Massachusetts Association of Community Development Corporations (“MACDC”), based on anticipated growth resulting from and subject to the completion of SVB’s pending acquisition of Boston Private Financial Holdings, Inc. (“Boston Private”) (NASDAQ: BPFH), the parent of Boston Private Bank & Trust Company. The acquisition was announced in January 2021 and is expected to close in mid-2021, subject to the satisfaction of customary closing conditions and applicable regulatory approvals.
Over a five-year period from January 2022 through December 2026, SVB’s $11.2 billion commitment will focus on providing financial support to LMI communities in California and Massachusetts:
- $5.0 billion in small business loans of $1 million or less;
- $4.8 billion in Community Reinvestment Act (“CRA”) community development (“CD”) loans and investments;
- $1.3 billion in residential mortgages to LMI borrowers and in LMI census tracts; and
- $75 million in charitable contributions.
As part of its residential mortgage lending commitment, SVB will expand its participation in the Massachusetts Housing Partnership’s ONE Mortgage and the City of Boston’s ONE+Boston first-time homebuyer mortgage programs. SVB will also commit to the Massachusetts Housing Partnership Fund.
In addition, SVB plans to adopt and implement a corporate supplier diversity program with a goal, by 2026, of contracting at least eight percent of its corporate supplier spending annually to locally-based businesses owned or led by members of historically underserved communities, such as people of color and women. SVB will also continue its commitment to increase management diversity within the organization and has signed on to Silicon Valley Leadership Group’s 25×25 program.
“As a leader in the innovation economy, we strive to use our voice and influence to help shape a better future and contribute to progress in our communities,” said Greg Becker, President and CEO of SVB Financial Group. “This proposed community benefits plan aligns with our long-held commitment to significantly contribute to our communities’ well-being. The growth of our business gives us the ability to step up more aggressively. We are intent on making a lasting impact and welcome the support of our community partners in developing this plan.”
SVB’s business model serving small and growing businesses, and its key community development initiative, Access to Innovation, are aimed at giving entrepreneurs and innovative startups opportunities to build their businesses, create jobs and give back to their communities.
As part of the proposed community benefits plan, SVB will also create a community advisory council and will meet with representatives from the CRC, The Greenlining Institute, MAHA and MACDC to review and discuss progress toward the plan’s goals.
Silicon Valley Bank operates under a Strategic Plan to comply with the Community Reinvestment Act. Upon completion of the pending acquisition of Boston Private, Silicon Valley Bank plans to amend its CRA Strategic Plan to include updated goals in California and new assessment areas for the greater Boston and Los Angeles regions. To receive a copy of SVB’s CRA Strategic Plan, please contact SVBintheCommunity@svb.com.
“This plan is a culmination of joint efforts by the Greenlining Institute and CRC, and grows SVB’s commitment to meeting the needs of low- and moderate-income communities and communities of color in an especially critical time, as many Californian families are either struggling to find housing or remain housed, and as small businesses weather the devastating financial impacts brought on by the COVID-19 pandemic. This is a win for both SVB and our communities,” said Kevin Stein, CRC Deputy Director.
“For 25 years, Boston Private Bank & Trust has been a Community Reinvestment Act leader here in Massachusetts,” said Symone Crawford, MAHA’s Director of Homeownership Education. “We applaud SVB for making this commitment to low-to moderate-income communities and households in greater Boston and bringing new resources to assist first-time homebuyers, small businesses and nonprofits. If we are to narrow the racial homeownership gap, we need financial institutions to do more in programs like ONE Mortgage and ONE+Boston and SVB is committing to do just that.”
About SVB Financial Group
For nearly 40 years, SVB Financial Group (NASDAQ: SIVB) and its subsidiaries have helped innovative companies and their investors move bold ideas forward, fast. SVB Financial Group’s businesses, including Silicon Valley Bank, offer commercial, investment and private banking, asset management, private wealth management, brokerage and investment services and funds management services to companies in the technology, life science and healthcare, private equity and venture capital, and premium wine industries. Headquartered in Santa Clara, California, SVB Financial Group operates in centers of innovation around the world. Learn more at svb.com.
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