Clear. 84.7   F New York
AI-Powered News Summarizer
Top Stories

Netflix is investing $100 million in Black-owned banks

June 30, 2020. Summarized by summa-bot.

ROME, ITALY - OCTOBER 08: Reed Hastings attends the Netflix & Mediaset Partnership Announcement, Rome, 8th October 2019. (Photo by Ernesto S. Ruscio/Getty Images / Netflix)

Netflix became the latest corporation yet to invest major resources in Black-owned banks on Monday in an effort to help close the persistent and growing racial wealth gap between Black and White America.

New York (CNN Business)Netflix (NFLX) on Tuesday said it would invest in Black-owned banks in an effort to help close the wealth gap between Black and White America.

The streaming service 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.

As part of the initiative, the company is also investing $25 million into the New York-based Local Initiatives Support Corporation, a development finance company with 35 offices across the country that backs Black entrepreneurs across a variety of businesses.

LISC President & CEO Maurice Jones said most Black-owned businesses are sole proprietorships with up to 10 employees with annual revenues of less than $1 million, and typically aren't prioritized by large commercial banks like Chase (CCF), Bank of America (BAC), or Wells Fargo (CBEAX).

About 10% of Netflix's $100 million investment will go to the Hope Credit Union, which finances underserved communities in the Deep South.

Jones said Netflix is one of several major companies that have invested in LISC over the last three weeks.

He said he's "never seen anything like" the outpouring of support that Black-owned financial institutions have received since Floyd's killing, but noted that support needs to be sustained over a period of years if companies are sincere in wanting to close the nation's racial wealth gap.

Summarizer is on Google News. Now you can get the latest AI summarized news on your favorite news platform.

Don't like Google News? We have an RSS Feed for you.

Suggestions