Huntington Bank Invests $5B In Michigan's Economy

MICHIGAN — Michigan’s economy has received a $5 billion investment from Huntington Bank in a partnership that will focus on supporting the state’s small businesses — especially those owned and operated by minorities and veterans — the state announced Wednesday.

Part of a $20 billion community plan Huntington announced Tuesday, the Michigan plan was developed in cooperation with Whitmer and Michigan community organizations to ensure the bank’s commitment reflects the needs of all people and businesses throughout the state, according to a news release.

"It's really great news for our small businesses and business owners who've been facing unprecedented challenge as we've navigated COVID-19 over these last six months," Whitmer said in a news conference Wednesday. "And the small business lending program will help women- and minority- and veteran-owned businesses as well. So, these are Michiganders who have been spending their lives building business here in Michigan. They've been struggling, and they need help now more than ever."

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In the next several months, the bank will announce specific initiatives to support small businesses, consumers and communities, according to a news release. The plan will evolve as Huntington continues to listen and take action to meet the changing needs of Michigan’s communities.

Minority-owned businesses — which have been particularly affected during the coronavirus pandemic, according to Lt. Gov. Garlin Gilchrist — will be a focus of the partnership.

Gilchrist pointed out disparities in how Black-owned businesses have been assisted during the coronavirus. Gilchrist said that in Michigan's Paycheck Protection Program that assisted 785 Michigan restaurants, only one business had a Black owner.

Gilchrist cited research done at the University of Michigan that revealed that nearly half of Black Detroiters and a third of Latino Detroiters say they have lost their jobs or had their hours cut due to the pandemic. The study also suggested that 40 percent of minority-owned businesses ma not have the financial means to open again on the other side of the pandemic, Gilchrist said.

"The coronavirus itself does not discriminate, but it is a parasite that feeds on the inequities that are historic and that are current in our society," Gilchrist said. "It is our generation's responsibility to address this head on."

The partnership also aims to assist other small businesses in Michigan. Sandy Pierce, Huntington Bank's director of Private Banking, Insurance Agency, Vehicle Finance and Regional Banking noted that rural small businesses and urban micro businesses have been especially hard hit during the pandemic.

“Our commitment to Michigan’s small businesses reflects the role they play in driving the state’s economy and the foundation they provide for our economic health," Pierce said.

Huntington will work with community organizations across the state to implement its Michigan Community Plan.

“We’re honored to work with many outstanding partners who share our commitment to building stronger communities throughout Michigan,” Pierce said. “Together, we can inspire higher levels of community engagement and deliver new opportunities for all the people we serve.”