The streaming service announced that it plans to deposit 2% of its money or approximately $ 100 million
, in black-owned financial institutions, and community development organizations that perform better on lending to minority borrowers than major consumer banks.
Banks and minority-owned banks and credit unions account for only 1% of total commercial banking assets in America.
“We believe that raising more capital for these communities can make a significant difference to people and businesses in them by helping more families buy their first home or save for college, and more small businesses start or grow.” , says a statement from Netflix.
As part of the initiative, the company is also investing $ 25 million in a New York-based company Corporation for support of local initiatives
, a development finance company with 35 offices across the country that supports black entrepreneurs in various businesses.
President and CEO of LISC Maurice Jones
said most companies owned by Black are sole proprietors with up to 10 employees
annual income less than
$ 1 million and are not usually prioritized by large commercial banks such as chase (CCF)
,, Bank of America (BAC)
, or Wales Fargo (CBEAX)
He said Netflix had first approached his organization over a potential deal following the May 25 murder of George Floyd at the hands of Minneapolis police, setting the stage for a national reliance on systemic racism.
“I remember they came to us after seeing the work we were doing around investing in small businesses, especially businesses run by people of color,” Jones told CNN Business.
About 10% of Netflix’s $ 100 million investment will go to Credit Union of Hope
, which funds undervalued communities in the deep south.
Jones said Netflix is one of several large companies to have invested in LISC in the past three weeks. He said he had “never seen anything like it” and the outpouring of support that Black-owned financial institutions have received since Floyd’s assassination, but noted that support must be maintained for years if companies are sincere in their desire. their to close the racial wealth of the nation void.
“Do we have the endurance, the fidelity to do this for years, as we have done in Europe with Marshall’s plan
after World War II? Jones asked. – If we build black wealth and minority communities in this country, it will benefit them and the entire economic health of the country. “
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