File photo courtesy of KeyBank

Cleveland-based KeyBank will increase its community investment initiative to $40 billion, with a continued focus on economic access and equity for underserved communities and populations, including Massachusetts.

The investment extends the bank’s $16.5 billion National Community Benefits Plan that was launched in 2017 following KeyBank’s acquisition of First Niagara Bank. The bank said in a statement that the National Community Benefits Plan surpassed its $16.5 billion goal in 2020 with more than $18 billion in lending and investments across its footprint.

The investments included $530 million to support Connecticut and Massachusetts small businesses, 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.

“KeyBank has a long-standing commitment to the Connect and Massachusetts market,” James Barger, Connecticut and Massachusetts market president, said in the statement. “We live and work in the communities we serve and have a proven track record of helping clients and communities thrive. KeyBank will work closely with local leaders and organizations across Connecticut and Massachusetts to develop comprehensive solutions to the pressing issues of economic disparity, racial equity, and climate change.”

Massachusetts and Connecticut investments during the first four years of the initiative included:

• More than $258 million invested in affordable housing and community development projects, including the St. Martin Townhouses in New Haven, Westbrook Village Apartments in Hartford, and Lyman Terrace Apartments in Holyoke.
• $99 million in small business loans in low- and-moderate income communities.
• $169 million in mortgage lending to low- and moderate-income communities.
• $3.79 million in philanthropic investments in neighborhoods through grants to nonprofit organizations, including Wayfinders in Springfield and Mass Mentoring Partnership in Boston.

KeyBank has branches in Western Massachusetts and is currently expanding its commercial banking business in Greater Boston

The expanded commitment nationwide will end up investing $36 billion on economic equity and inclusion initiatives, including providing affordable housing, mortgages, small business lending, and transformative philanthropy in the markets where it does business, the bank said. KeyBank also plans to support homeownership by investing in down payment assistance.

Equity and inclusion initiatives also include hiring and career development, increasing business with diverse suppliers, building partnerships with CDFIs focused on serving minority-owned businesses, and developing and delivering financial education in minority and LMI communities.

KeyBank has also committed $4 billion to renewable energy and sustainability. The bank has made more than $15 billion in renewable energy investments since 2012, according to the statement, and was a top provider of renewable energy financing in North America in 2019 and 2020. KeyBank will increase its renewable energy financing as part of the community commitment, and it will also accelerate its efforts to reduce the company’s environmental footprint.

“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,” said Chris Gorman, Key’s chairman, CEO and president. “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.”