#Roommates, another major cooperation is putting its money where its mouth is—and this time it happens to be the world’s most popular streaming service. Netflix just announced that it plans to invest $100 million into various banks that specifically support the Black community.
@Variety reports, that Netflix recently confirmed that it plans to allocate 2% of its cash on hand, with an initial investment of $100 million, to banks and other financial institutions that directly support Black communities throughout the country. Netflix noted that banks led or owned by Black people represent a minuscule portion of the country’s overall banking assets and hopes that it financial contribution can change that.
For its first investments under the new program, Netflix said it’s putting $35 million of its cash into two vehicles. The first, funded with $25 million, is a newly established fund called the Black Economic Development Initiative, managed by the Local Initiatives Support Corporation (LISC), which is a nonprofit organization with a track record of developing underinvested communities. That company will then invest the funds into Black financial institutions serving low- and moderate-income communities and Black community development corporations in the U.S. Netflix is putting another $10 million into Hope Credit Union, in the form of a Transformational Deposit “to fuel economic opportunity in underserved communities across the Deep South.”
As of March 31st, Netflix reported $5.15 billion in cash and equivalents despite the coronavirus pandemic financially crippling many other companies. Additionally, the company also stated that the funding for the financial institutions serving Black communities will increase as Netflix continues to grow.
Netflix Director of Talent Acquisition Aaron Mitchell and Treasury Directory Shannon Alwyn explained the massive financial move this way:
“We believe bringing more capital to these communities can make a meaningful difference for the people and businesses in them, helping more families buy their first home or save for college, and more small businesses get started or grow.”
You may recall that earlier this month Netflix announced a $5 million donation to organizations dedicated to creating opportunities for Black creators, Black youth and Black-owned businesses. That was followed by company CEO Reed Hastings and his wife donating $120 million in scholarships and grants to Morehouse, Spelman and the United Negro College Fund.
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