2024 TD Ready Challenge Focuses on Addressing Systemic Barriers Faced by Underserved Small Business Owners: $10 million in Grants Available for Innovative Solutions

Rhea-AI Summary

TD Bank Group has launched the 2024 TD Ready Challenge, offering $10 million in grants for innovative solutions supporting underserved small business owners. The program aims to address systemic barriers faced by entrepreneurs, especially in industries still recovering post-pandemic. Ten grants of CDN/USD $1 million each are available to eligible charitable and non-profit organizations across TD's footprint in the U.S. and Canada.

The challenge focuses on overcoming obstacles such as insufficient funding, lack of business planning knowledge, and access to capital. It aligns with TD's broader initiatives, including the TD Ready Commitment and TD Pathways to Economic Inclusion. Applications are open until September 5, 2024, with details available at td.com/readychallenge.

Positive

• Offering $10 million in grants to support underserved small business owners
• Aligns with TD's broader economic inclusion initiatives
• Potential to drive job growth, innovation, and business diversity

Negative

• None.

Insights

Financial Analyst

As a financial analyst, I find TD Bank Group's 2024 TD Ready Challenge to be a commendable initiative, albeit with direct impact on the company's stock performance. The $10 million grant program, while substantial for the recipients, represents a relatively small investment for a major financial institution like TD.

However, this initiative aligns well with TD's broader corporate social responsibility efforts and could yield long-term benefits in terms of brand reputation and customer loyalty. By focusing on underserved small business owners, TD is positioning itself as a supporter of economic inclusion and local economic development.

From an investor's perspective, it's important to note that such initiatives, while not directly impacting the bottom line, can contribute to a bank's overall risk management strategy. By fostering a healthier small business ecosystem, TD may be indirectly reducing its exposure to small business loan defaults in the long run.

The alignment with TD's $20 billion Community Impact Plan in the U.S. suggests a coordinated approach to community investment, which could potentially lead to increased market share in underserved communities. However, investors should be cautious about overestimating the short-term financial impact of such initiatives.

In conclusion, while this program is unlikely to move TD's stock price significantly, it represents a strategic investment in community goodwill and potential future market expansion. Investors should view this as part of TD's long-term strategy rather than a driver of immediate financial returns.

Market Research Analyst

From a market research perspective, TD Bank's focus on underserved small business owners is a shrewd move that taps into a significant market opportunity. Small businesses are indeed the backbone of both the U.S. and Canadian economies and by addressing the systemic barriers faced by underserved entrepreneurs, TD is positioning itself to capture a potentially lucrative and underserved market segment.

The statistics cited in the announcement are particularly telling: a 40% failure rate for businesses in Canada within their first five years and a staggering 50% in the U.S. These figures underscore the need for innovative solutions to support small businesses, especially those from underserved communities.

By focusing on industries such as the arts that are still recovering post-pandemic, TD is demonstrating an understanding of sector-specific challenges. This targeted approach could lead to more effective solutions and potentially higher success rates for grant recipients.

From a competitive standpoint, this initiative could differentiate TD from other financial institutions. If successful, it could lead to increased brand loyalty among small business owners and potentially translate into a larger small business banking market share for TD in the long run.

However, it's important to note that the impact of this program may take years to materialize in terms of measurable market share gains or financial returns. Investors should view this as a long-term strategic play rather than a short-term profit driver.

Applications now open for eligible charitable and non-profit organizations across TD’s footprint in the U.S. and Canada

TORONTO & CHERRY HILL, N.J.--(BUSINESS WIRE)-- TD Bank Group (TD) announced today that applications are now open for the annual TD Ready Challenge grant program. This year, TD is inviting eligible charitable and non-profit organizations to submit proposals for innovative solutions that support underserved small business owners in developing, launching, or growing their businesses. A total of 10 grants are available of either CDN $1 million or USD $1 million, depending on the applicant's country of residence.

"Small businesses are a crucial part of resilient communities and contribute to strong local economies by helping to drive job growth, innovation and business diversity” said Mushtak Najarali, SVP, Sustainability, Strategic Sourcing and Enterprise Real Estate at TD. “Despite their critical role, within their first five years roughly 40% of businesses in Canada fail¹, and in the U.S. an astounding 50% fail². Data from the Canadian Chamber of Commerce and the U.S. Senate committee on Small Business and Entrepreneurship shows that the situation is even harder for those in underserved communities who often face systemic barriers when starting or growing a business. With the 2024 TD Ready Challenge, we aim to support innovative solutions developed by charities and non-profit organizations that can help cultivate a more supportive entrepreneurial landscape across our footprint. We are looking forward to seeing the creative solutions that will be submitted.”

The TD Ready Challenge aims to help scale programs that promote innovation and inclusive growth. Through this year’s challenge, TD is seeking to support novel strategies, technologies or partnerships that have the potential to help underserved entrepreneurs — especially those in industries such as the arts that are still recovering post-pandemic— overcome persistent barriers such as insufficient funding and support, lack of knowledge about effective business planning, and limited access to capital and credit history.

The TD Ready Challenge is a key component of the Bank's global corporate citizenship platform, the TD Ready Commitment. Since 2018, the TD Ready Challenge has granted over $60 million CDN to 65 charitable organizations to help respond to pressing societal issues connected to the four drivers of change of the TD Ready Commitment: Financial Security, Vibrant Planet, Connected Communities and Better Health. The TD Ready Challenge is the Bank's annual North American initiative, which has ten (10) $1 million grants (in local currency of recipients) available to organizations developing innovative, impactful, and measurable solutions for a changing world.

This year’s problem statement is one of the many ways TD is seeking to help improve economic inclusion. It aligns with TD Pathways to Economic Inclusion, the Bank’s social framework that focuses on three areas where the Bank seeks to contribute to inclusive financial and economic outcomes: employment access, financial access, and housing access. It also aligns to the goals of the TD Bank Community Impact Plan, a three-year, $20 billion commitment announced in January 2024 which aims to provide economic opportunities that benefit low- and moderate-income, diverse and underserved communities across the Bank’s U.S. presence.

TD will be accepting grant applications until 4 p.m. ET on Sept. 5, 2024. For complete details about this year's Challenge, please visit: td.com/readychallenge.

About TD Bank Group

The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group ("TD" or the "Bank"). TD is the sixth largest bank in North America by assets and serves over 27.5 million customers in four key businesses operating in a number of locations in financial centers around the globe: Canadian Personal and Commercial Banking, including TD Canada Trust and TD Auto Finance Canada; U.S. Retail, including TD Bank, America's Most Convenient Bank®, TD Auto Finance U.S., TD Wealth (U.S.), and an investment in The Charles Schwab Corporation; Wealth Management and Insurance, including TD Wealth (Canada), TD Direct Investing, and TD Insurance; and Wholesale Banking, including TD Securities and TD Cowen. TD also ranks among the world's leading online financial services firms, with more than 17 million active online and mobile customers. TD had $1.97 trillion in assets on April 30, 2024. The Toronto-Dominion Bank trades under the symbol "TD" on the Toronto and New York Stock Exchanges.

¹ According to government of Canada Key Small Business Statistics 2023
² According to U.S. Bureau of Labor Statistics

View source version on businesswire.com: https://www.businesswire.com/news/home/20240724058466/en/

Media:

Natasha Brown (U.S.)

Manager, Corporate and Public Affairs, TD Bank

natasha.brown@td.com



Isabella Nasak Kima (Canada)

Manager, Corporate and Public Affairs, TD Bank Group

isabella.nasakkima@td.com

Source: TD Bank Group

FAQ

What is the focus of the 2024 TD Ready Challenge (TD)?

The 2024 TD Ready Challenge focuses on addressing systemic barriers faced by underserved small business owners, offering grants for innovative solutions to support them in developing, launching, or growing their businesses.

How much funding is available in the 2024 TD Ready Challenge (TD)?

The 2024 TD Ready Challenge offers a total of $10 million in grants, with ten grants of either CDN $1 million or USD $1 million available, depending on the applicant's country of residence.

When is the application deadline for the 2024 TD Ready Challenge (TD)?

The application deadline for the 2024 TD Ready Challenge is September 5, 2024, at 4 p.m. ET.

Who is eligible to apply for the 2024 TD Ready Challenge grants (TD)?

Eligible charitable and non-profit organizations across TD's footprint in the U.S. and Canada can apply for the 2024 TD Ready Challenge grants.