MUFG Pledges $3MM to Support Those Affected by COVID-19
MAR 30, 2020 - 6:25 am
Given the global impact and disruption of COVID-19, Mitsubishi UFJ Financial Group (MUFG) is taking measures to support communities in which it serves across the United States, Latin America and Canada, as well as clients and colleagues.
“This is an unprecedented global event that is significantly affecting the communities where our colleagues, families and clients live and work,” said Steve Cummings, President and Chief Executive Officer for MUFG Americas. “We believe it is our responsibility to be part of the solution to help those that have been impacted and accelerate their path to recovery.”
In collaboration with nonprofit organizations, local government agencies and public-private humanitarian partners, the company will direct $3 million in philanthropic pledge efforts to local communities globally:
$1.4 million in support of the small business sector in the United States, which will be allocated toward U.S. economic development activities that sustain small business operations, particularly in low- and moderate-income communities
$500,000 for U.S.-based social safety net programs, including regional foodbanks, that provide human services to low- to moderate-income populations
$100,000 earmarked for community-based organizations in Canada and Latin America
$1 million to existing small business grants in the United States.
Additionally, to further assist long-time community partnerships in the United States, the company’s foundation has adjusted its funding criteria to consider grants that cover operating costs.
The company is also working with the Bankers Small Business Community Development Corp. of California, a CDFI (Community Development Financial Institution) and affiliate of CDC Small Business Finance, to establish a loan program in the United States to help alleviate the shortfall in cash flow for small businesses. Capital provided to the CDFI will be offered at a below-market interest rate.
“COVID-19 is causing critical health, social and economic ramifications throughout the world,” said Julius Robinson, head of Corporate Social Responsibility for the Americas, MUFG Union Bank. “Relief and recovery from the global pandemic will require an extraordinary effort across sectors, including business, government, nonprofits and others. Small businesses in particular are in dire need of assistance. As a financial institution that is active in this space, we are uniquely positioned from a capital perspective to help fund both near-term and longer-term recovery efforts.”
Union Bank is offering account fee waivers, payment deferrals and other expanded assistance for both consumer and small business clients experiencing hardship related to the COVID-19 pandemic. The bank has also established a COVID-19 resource center on Unionbank.com that is updated regularly to address common questions and point to relief support resources.
MUFG’s Corporate Banking, Investment Banking and Global Markets businesses are providing clients with counsel on how to navigate challenging market conditions while offering credit extensions—evaluated on a case-by-case basis—to those who need them. As a global organization with a footprint across more than 2,700 locations worldwide, MUFG is advising local and multinational clients with perspectives on the current environment across markets and countries.
To ensure the safety of its colleagues, MUFG previously implemented a number of precautionary measures, including travel restrictions and the elimination of face-to-face meetings. More than 10,000 MUFG colleagues across the Americas, about 77% of the total workforce across both continents, are now working remotely, and the company continues to implement technology solutions to enable more remote work.
MUFG has also expanded benefits for colleagues across the Americas in need of additional support through a temporary crisis-relief time-off benefit, continuing pay should an eligible colleague become ill or must attend to family needs.
For Union Bank colleagues in California, Washington and Oregon in roles that are required to be in an office or branch to maintain essential bank operations, the company has taken a number of additional steps to ensure the safety of its workforce, including social distancing, staggered staff and shifts, enhanced cleaning, gloves, hand sanitizer and regular hand-washing breaks for all public-facing colleagues. All Union Bank branch staff will receive supplemental crisis relief pay of up to $1,000 to assist with unplanned financial burdens associated with COVID-19 for March and April. The company will evaluate further extensions based on how the situation evolves.
An Employee Relief Fund (ERF) is also available for colleagues who are experiencing unforeseen financial hardship as a result of COVID-19. With initial seed funding of $200,000, the ERF allows for colleagues to donate contributions and pool their resources to support one another in their time of need.
MUFG is the world’s fifth-largest financial institution, with approximately $2.9 trillion in total assets.
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