Boston-based Eastern Bank announced plans this week to commit more than $10 million in aid to individuals, families, small businesses, and nonprofit organizations affected by the COVID-19 crisis.
In a statement released earlier this week, the company said it planned to create two loan funds that would provide a total of $7 million to its individual and small business customers experiencing financial hardship due to the coronavirus pandemic.
In addition, Eastern Bank’s Charitable Foundation announced it would give an additional $3 million in financial support from its fund to local nonprofits dedicated to COVID-19 relief.
“The levels of disruption, uncertainty, and resulting stress our community, local economy, and we as individuals … are experiencing are unprecedented, and Eastern is making a substantial commitment to offer our support and provide relief where we can,” said Chair and CEO Bob Rivers in a statement. “The loan programs we are announcing are designed to help customers experiencing financial hardship during this extraordinarily challenging time.”
Existing individual customers will be allowed to borrow up to $5,000 from the bank’s $2 million Consumer Impact Loan Fund, and business owners already banking with Eastern can borrow up to $25,000 from its $5 million Small Business Impact Loan Fund.
Ten regional organizations will also receive $100,000 each, including the Boston Foundation COVID-19 Response Fund, the City of Boston Resiliency Fund, and the Essex County Community Foundation’s COVID-19 Response Fund.
“Regional community organizations are essential to identifying the most acute community needs and mobilizing their resources to address them on the ground quickly,” the statement read.
Eastern Bank also announced additional measures to ease recent financial burdens on individuals and families:
- Clients can request refunds including overdraft fees, non-sufficient funds fees, and monthly maintenance fees.
- Increased ATM and debit card cash withdrawal limits.
- Increased mobile deposit limits.
- Waived penalties for early CD withdrawals of up to $50,000.
- Deferral of mortgage and other loan payments, as needed.
- Waiver of loan late charges, as needed.
- Paused foreclosures, evictions, and repossessions.
Businesses will also receive additional support measures, including:
- Clients can request refunds including overdraft fees, non-sufficient funds fees, and monthly maintenance fees.
- Waived penalties for early CD withdrawals of up to $50,000.
- Increased ATM card withdrawal limits.
- Eastern’s traditional and Small Business Administration (SBA) loan programs for additional financing to existing and new customers.
- Payment relief on commercial and small business loans, as needed.
- Waiver of loan late charges, as needed.
“(These measures) essentially just began (Wednesday), so I haven’t received any numbers, but we expect a lot of demand for both,” Rivers said.
He said chosen organizations have already received their allotted funds, and added that actions like the ones Eastern Bank has taken will ideally ease the strain on the nation’s economy once the COVID-19 pandemic is over.
“What we are doing here is very consistent with lots of things we’ve done over the years in support of both our customers and our communities,” he said. “This is not unusual for us to be reaching out to find better ways to support (the community).”
