The live streaming service announced plans to deposit 2% of its cash, or an estimated 100 million dollars
, In black-owned financial institutions and community development organizations, which have a proven track record of lending to minority borrowers from mainstream consumer banks.
Minority banks and credit unions represent just 1% of all US commercial banking assets.
“We believe that bringing in more capital to these communities can make a tangible difference to the people and companies in them, and help more families buy their first home or save to college, and more and more small businesses start or grow,” Netflix said in a statement.
As part of the initiative, the company is also investing $ 25 million in its New York headquarters Local Initiatives Support Foundation
, A development finance company with 35 offices across the country that supports black entrepreneurs across a variety of businesses.
LISC President and CEO Maurice Jones
Most of the black owned companies are individual ownership with up to 10 employees with
Annual revenue is less than
Million dollars, and it is usually not a priority by such large commercial banks Chase (CCF)
, American bank (BAC)
or Wells Fargo (CBEAX)
He said that Netflix contacted his organization for the first time about a possible deal after the murder of George Floyd on May 25 by the Minneapolis police, which sparked a national account due to systemic racism.
“It reminds me that they communicated with us after seeing the work we were doing on investing in small companies, especially companies led by colored people,” Jones told CNN Business.
About 10% of Netflix’s $ 100 million investment will be devoted to the United States Hope the credit union
, Which fund disadvantaged societies deep in the south.
Jones said that Netflix is one of the many big companies that have invested in LISC for the past three weeks. He said it was “unprecedented” the flow of support that black-owned financial institutions have received since Floyd’s killing, but he indicated that support should continue for years if companies were sincere in their desire to close the country’s ethnic wealth.
“Do we have the endurance and sincerity to do this for years, as we did in Europe with Marshall Plan
Jones asked after World War Two? If we build the black wealth and minority communities in this country, it will be good for them and for the country’s full economic health.