The streaming service has announced plans to deposit 2% of its cash $ 100 million
, Black-owned financial institutions and community development companies have a better track record of lending to minority borrowers than mainstream consumer banks.
Minority-owned banks and credit unions make up just 1% of all commercial banking assets in the US.
“We believe that bringing more capital to these communities will make a significant difference to the individuals and businesses in them, helping more families buy their first home or save for college, and more small businesses to start or grow,” Netflix said in a statement.
As part of this initiative, the company is also investing $ 25 million in New York Local Initiatives Support Corporation
, A development finance company with 35 offices nationwide, which supports black entrepreneurs in a variety of businesses.
LISC President & CEO Maurice Jones
Most Black-owned businesses said it was the sole proprietorship with 10 employees
Annual incomes lower than
Million 1 million, and is generally not preferred by large commercial banks Chase (CCF)
, Bank of America (BAC)
, Or Wells Fargo (CBEAX)
Netflix contacted its agency about a potential deal after the May 25 murder of George Floyd at the hands of Minneapolis police, which launched a national count on systemic racism.
“My memory is that they reached out to us after seeing what we were doing about investing in small businesses, especially people of color,” Jones told CNN Business.
10% of Netflix’s $ 100 million investment goes Hope Credit Union
, Which finances the underserved communities of the Deep South.
Jones said Netflix was one of several major companies that had been investing in LISC for the past three weeks. He said he had never seen the support of Black-owned financial institutions since Floyd’s assassination, but said that if the companies were intent on shutting down the nation’s national wealth, they would need to continue to support it for a few years. Empty.
“Do we have the vision and confidence to do this for years, as we have done in Europe? Marshall Plan
After WWII? “Jones asked.” If we build black wealth and minority communities in this country, it will be good for them and for the overall economic health of the country. “