Payments

Capital One announces $265B community benefits plan alongside Discover acquisition

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July 19, 2024

Capital One Financial Corp. announced that it will deliver more than $265 billion for philanthropy, investment and lending over the next five years. This is part of its proposed acquisition of Discover Financial Services, first announced in February 2024 and expected to close late 2024 or early 2025, pending regulatory approvals, according to a press release.

This funding will go to a variety of projects including:

• More than $35 billion to support affordable housing in low-to-moderate income areas.
• More than $5 billion to address LMI community challenges like food, healthcare and education through new markets tax credits, alternative energy financing and municipal lending.
• Working with Delaware State Housing Authority for home purchases via bonds and investments in mortgage-backed securities.
• $600 million to nonprofit community development financial institutions.
• $575 million in philanthropy including grants for AI research, rent reporting initiatives, pro bono homeownership initiatives and more.

It will also extend more products to LMI communities such as $125 billion in credit card lending, $75 billion in automobile finance and the Second Look auto loan program for customers declined through the Auto Navigator to CDFIs.

"This plan delivers high-impact, scalable solutions for low- and moderate-income communities, and its commitments and ambition reflect the robust, candid dialogue that drove its development," Andres Navarrete, EVP and head of external affairs at Capital One, said in the release. "We have long valued community and customer feedback on our products, policies, and programs, recognizing that our partners are often the closest to the needs of the community, and we are deeply grateful to our negotiating partners and the many other community members and leaders across the country whose feedback and innovative ideas are reflected in this plan."