As part of its progress for racial and economic equality, financial giant Bank of America has announced a $300 million investment fund as part of its $1 billion commitment to be allocated toward Black and brown-led businesses and banks, Black Enterprise reports.
According to American Banker, the Charlotte, NC bank shared that it plans to dedicate all $300 million of the funds to four key areas: $200 million to Black and brown entrepreneurs and businesses; $50 million to minority depository institutions; $25 million to community outreach; and $25 million to support job initiatives in Black and brown communities across the nation.
“These initiative investments will address access to jobs and support for small businesses by creating more pathways to employment in communities of color and more support for minority entrepreneurs,” Chairman and CEO, Brian Moynihan, said in a press statement.
After announcing its huge billion-dollar four-year commitment to economic opportunity initiatives back in June, Bank of America’s financial support in local communities across America has greatly increased.
As reported by Black Enterprise, three minority depository institutions will reportedly receive $50 million from Bank of America, geared toward helping the banks serve through various services, such as lending, housing, neighborhood revitalization, and more.
American Banker reports that they’ve already completed said investments for the First Independence Corp. in Detroit, Liberty Financial Services in New Orleans, and SCCB Financial Corp. in Columbia, S.C., with each investment amounting to roughly 5 percent of the respective bank’s common equity.
Additionally, the banking company plans to announce more direct equity investments in Black and brown-owned businesses to provide growth capital and programs to uplift future entrepreneurs, according to Black Enterprise.
Bank of America’s strong commitment follows the national protests and civil unrest behind George Floyd, Breonna Taylor, and others’ deaths.
Minority Depository Institutions have a history of obstacles that include a lack of funding, which is needed to help keep them afloat to serve customers.
However, Bank of America’s slate of initiatives –run by vice chairman Anne Finucane –have been a tremendous help to community colleges, HBCUs, Hispanic-serving universities, and other institutions in need of funding.
“We’re focused on building a stronger hiring pipeline for Black and Hispanic/Latino students in local communities,” Finucane said in a statement reported by Black Enterprise. “This initiative leverages the firm’s resources, has dedicated teams focused on it, and expands into local networks and partnerships.”
For more information on Bank of America’s initiatives, click here.