Ally Financial is supporting Black Business Month the best way companies can by investing money back into Black communities.
In an effort to address issues of low capital and lack of access to funding for Black founders, the digital financial services company has pledged to make a hefty $30 million investment into venture capital funds created to support Black and people of color, a press release reports.
A sum of $25 million will go toward SoLa Impact’s recently launched $300 million Black Impact Fund and the remaining $5 million will be invested into the Fearless Fund — a venture capital fund created by women of color for women of color. In addition to these investments, Ally Financial will also work closely with Fearless fund to develop a series of programs to promote more Black entrepreneurship and wealth growth.
“Black-owned businesses are the backbone of many communities throughout the country,” Diane Morais — President of Consumer and Commercial Banking at Ally Bank — said in a statement. “To succeed, they need capital and, when it comes to accessing that capital, we know representation matters. Our investments in Fearless Fund and the Black Impact Fund will help develop the next generation of successful Black entrepreneurs, investors and community leaders who will be writing the checks and creating the opportunities. These are important steps to building a healthier and more inclusive economy.”
Beyond honoring Black-owned businesses nationwide for the month of August, Ally Financial also demonstrates a continued effort to support these businesses and their founders with funding and mentorship year-round.
As a primary investor in Fearless Fund, Ally helps with events and initiatives like Fearless Venture Capital Week — which will solely focus on women entrepreneurs. Additionally, the finance company is also backing SoLa impact’s Black Impact Fund, which uses real estate-related funds with a strategy to invest in Black and Brown communities in major urban markets. With such strong support from Ally, these two funds are able to thrive and directly impact the growth within Black communities and the businesses we own.
“This investment from Ally is a significant step forward in enacting practical solutions that affect change and deliver sustainable social impact for Black and Brown communities,” Martin Muoto — CEO of SoLa Impact and Managing Partner of the Black Impact Fund — said in a statement. “Ally’s investment demonstrates their deep understanding of how creating opportunities for access to affordable housing and access to capital within diverse communities fosters a stronger economic landscape for us all. We believe Ally’s commitment demonstrates true leadership in diversity and inclusion among financial institutions.”
For more about Ally Financial’s commitments to the Black community, click here.