Netflix on Tuesday announced plans to deposit 2% of its cash, or an estimated $100 million, into Black owned financial institutions and community development organizations, which have a better track record of lending to minority borrowers than mainstream consumer banks.
“We believe bringing more capital to these communities can make a meaningful difference for the people and businesses in them, helping more families buy their first home or save for college, and more small businesses get started or grow.
According to the FDIC, banks that are Black-owned or led represent a mere one percent of America’s commercial banking assets,” Netflix said in a statement.
As the first step in this $100 million commitment, Netflix will be holding $35 million of our cash in two vehicles:
- $25 million will be moved to a newly established fund called the Black Economic Development Initiative. It will be managed by the Local Initiatives Support Corporation (LISC), a non-profit with a track record of developing underinvested communities. They will invest the funds into Black financial institutions serving low and moderate-income communities and Black community development corporations in the U.S.
- $10 million will go to Hope Credit Union in the form of a Transformational Deposit to fuel economic opportunity in underserved communities across the Deep South. Bill Bynum, CEO of HOPE, has spent the last three decades advancing economic mobility in distressed communities.
“This capital will fuel social mobility and opportunity in the low- and moderate-income communities these groups serve. We plan to redirect even more of our cash to Black-led and focused institutions as we grow, and we hope others will do the same.”
Subscribe and Follow SHOPPE BLACK on Facebook, Instagram &Twitter
Get your SHOPPE BLACK Apparel!
