Netflix Fulfills Pledge To Black community With $100M Support
Netflix said it has fulfilled its pledge to the Black community by moving two percent of its cash holdings – around $100m – into Black-led banks and financial institutions in the US.
The funding has been shared between six institutions, including $10m deposited with Hope Credit Union in the form of a transformational deposit to fuel economic opportunity in underserved communities in Alabama, Arkansas, Louisiana, Mississippi, and Tennessee.
The move comes after it announced back in June 2020, amid racial-equality protests across America, that it would invest capital in Black banks to help address racial wealth inequality.
“More capital moving into these institutions means more home and small-business loans, resulting in more opportunities for Black communities,” Aaron Mitchell, HR director of Netflix Animation Studios, and treasurer Shannon Alwyn wrote in a blog post-Wednesday, Variety reports.
The Netflix execs wrote that to help close the wealth gap, “we need more companies to join this movement” and linked to a post from last year outlining its learnings from the initiative.
Netflix’s 2% cash holdings pledge of $100 million has been allocated as follows:
Hope Credit Union
$10 million was deposited with Hope Credit Union in the form of a Transformational Deposit to fuel economic opportunity in underserved communities in Alabama, Arkansas, Louisiana, Mississippi, and Tennessee.
Black Economic Development Fund
$25 million was invested as seed funding to establish the Black Economic Development Fund, managed by the Local Initiatives Support Corporation (LISC). The fund invests in Black-led banks, anchor institutions, businesses, and real estate developers.
It reached its $250 million goal this year after capital investments from 11 public and private companies, including PayPal, Costco, Square, and McKinsey & Co.
The Change Co.
$10 million was invested with The Change Co. to provide financing to Black homeowners fairly and responsibly.
Enterprise Community Impact Note
$25 million was invested as seed funding for the Enterprise Community Impact Note to support its Equitable Path Forward initiative. The initiative supports historically marginalized housing providers in creating and preserving affordable homes in diverse communities.
$10 million was deposited with OneUnited Bank as the start of an ongoing relationship.
Community Investment Note
$20 million was invested in Calvert Impact Capital’s Community Investment Note. The funds are earmarked to support housing and community development projects focused on U.S. BIPOC communities.