Bank Of America Sets To Invest $300 Million In Black Businesses And Banks In An Effort Towards Racial Equality

by Duke Magazine

As part of its progress for racial and economic equality, the United States financial giant, Bank of America, has announced a $300 million investment fund as part of its $1 billion commitment to be allocated toward Black and brown-led businesses and banks, according to Black Enterprise.

The bank shared that it plans to dedicate all $300 million of the funds to four key areas: $200 million to Black and brown entrepreneurs and businesses; $50 million to minority depository institutions; $25 million to community outreach; and $25 million to support job initiatives in Black and brown communities across the nation.

“These initiative investments will address access to jobs and support for small businesses by creating more pathways to employment in communities of color and more support for minority entrepreneurs,” Chairman and CEO, Brian Moynihan, said in a a press statement.

Upon the announcement of its huge billion-dollar four-year commitment to economic opportunity initiatives back in June, Bank of America’s financial support in local communities across America has greatly increased.

Three minority depository institutions will reportedly receive $50 million from Bank of America, geared toward helping the banks serve through various services, such as lending, housing, neighborhood revitalization, and more.

However, American Banker reports that they have already completed said investments for the First Independence Corp. in Detroit, Liberty Financial Services in New Orleans, and SCCB Financial Corp. in Columbia, S.C., with each investment amounting to roughly 5 percent of the respective bank’s common equity.

Additionally, the banking company plans to announce more direct equity investments in Black and brown-owned businesses to provide growth capital and programs to uplift future entrepreneurs. 

Bank of America’s strong commitment follows the national protests and civil unrest behind George Floyd, Breonna Taylor, and others’ deaths.

Minority Depository Institutions have a history of obstacles that include a lack of funding, which is needed to help keep them afloat to serve customers.

However, Bank of America’s slate of initiatives –run by vice chairman Anne Finucane –have been a tremendous help to community colleges, HBCUs, Hispanic-serving universities, and other institutions in need of funding.

“We’re focused on building a stronger hiring pipeline for Black and Hispanic/Latino students in local communities,” Finucane said in a statement reported by Black Enterprise. “This initiative leverages the firm’s resources, has dedicated teams focused on it, and expands into local networks and partnerships.”

Related Posts

Leave a Comment

WeCreativez WhatsApp Support
Our support team is here to answer your questions. Ask us anything!
? Hi, how can I help?