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Banker & Tradesman photo / file
Boston-based Berkshire Bank has committed $5 billion toward community and environmental financing and investments as part of a three-year initiative that the bank said would help strengthen local communities.
The initiative, which the bank is calling “BEST Community Comeback,” will focus on small businesses, community financing and philanthropy, financial access and empowerment, and environmental sustainability, Berkshire said in a statement today.
The bank said the initiative integrates with the BEST (Berkshire’s Exciting Strategic Transformation) plan the company had unveiled in May “to improve the customer experience, deliver profitable growth, enhance stakeholder value and further strengthen its community impact.”
“We believe that building stronger communities requires a better approach to banking,” Nitin J. Mhatre, CEO of Berkshire Bank, said in today’s statement. “Our vision is to be the leading socially responsible community bank in the New England and Eastern New York region. Our BEST Community Comeback highlights our purpose, delivers on our vision and will empower our communities to realize their full potential.”
The initiative includes $1.5 billion in small business lending, as well as targeted programming for business owners that will include financial coaching and technical assistance. The bank also plans to provide $2.5 billion in mortgage lending. Lending in low- and moderate-income neighborhoods will total $2.5 billion.
The initiative also includes:
- $15 million in community contributions
- The equivalent of $3 million in employee volunteer time
- $50 million in socially responsible investments under management
- $200 million in lending for minority mortgage borrowers
- Financial wellness programming for 300,000 people
- 200,000 socially responsible customer bank accounts
- $300 million in lending for low-carbon projects
Berkshire also plans to use 100 percent renewable electricity and reduce greenhouse gas emissions.
As part of a kickoff for the initiative, Berkshire Bank branches will close at 12 p.m. today for an “Xtraordinary Day of Service.” The bank said employees would be deployed in a virtual setting, volunteering for causes that support the small business ecosystem, equity and inclusion and basic community needs.
“Xtraordinary Day is a way for our employees to bring our purpose to life and illustrate our mission in a tangible way across our footprint,” Mhatre said. “Volunteering together strengthens communities and underscores our partnership with the organizations and people around us.”
The bank has partnered with the organization Common Impact to host a virtual nonprofit Pitch Competition where employee volunteers will help solve challenges facing several nonprofits, including the Rhode Island Black Business Association and the National Conference for Community and Justice.
“We recognize that support is needed in so many ways, even more so now given the events of the last 18 months,” Mhatre said. “At Berkshire Bank, we stand steadfast in our commitment to harness the collective power of our entire company to help our communities come back stronger than ever before.”
