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- In the first step in allocating the funds, $25 million will be moved to a newly established fund called the Black Economic Development Initiative. The initiative will invest in “Black financial institutions serving low and moderate-income communities and Black community development corporations in the U.S.”
- An additional $10 million will go to the Hope Credit Union to “fuel economic opportunity in underserved communities across the Deep South.”
- The news comes two weeks after Netflix co-founders and CEO Reed Hasting announced he would be donating $120 million to Black colleges.
Video streaming giant Netflix announced Tuesday it will be allocating 2 percent of its cash holdings into financial institutions and organizations that directly support Black communities in the United States.
In a blog post titled “Building economic opportunity for Black communities,” Netflix said its initial commitment will be as much as $100 million.
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“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,” the company wrote in the blog post.
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Netflix cited the FDIC, noting that banks that are Black-owned or led represent “a mere one percent” of the country’s commercial banking assets. The company said by redirecting cash to Black-owned institutions it hopes to inspire other large companies to do the same with their cash deposits.
In the first step in allocating the funds, $25 million will be moved to a newly established fund called the Black Economic Development Initiative. The initiative will invest in “Black financial institutions serving low and moderate-income communities and Black community development corporations in the U.S.,” Netflix said.
An additional $10 million will go to the Hope Credit Union to “fuel economic opportunity in underserved communities across the Deep South.”
“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,” Netflix said.
The news comes two weeks after Netflix co-founder and CEO Reed Hasting announced he would be donating $120 million to Black colleges.
The death of George Floyd at the hands of Minneapolis police on May 25 sparked widespread protests against racial inequities and have led to calls from activists and lawmakers to put more funding into social service programs and initiatives to support people of color.
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