Black-Led Banks Receive $100 Million Investment From Netflix
In SummaryAfter George Floyd was murdered, Netflix promised to invest in Black financial institutions and the company said it has kept that promise by investing $100 million.
Netflix said it has kept its promise and invested $100 million into six Black-led banks in the United States.
According to Variety, this is part of Netflix’s initiative to allocate two percent of its cash holdings into banks servicing Black communities. In June 2020, when social justice was at the center of public discussion following George Floyd’s murder, Netflix announced its plans to invest capital in Blank banks.
The $100 million was allocated to several financial institutions, including:
- $10 million to Hope Credit Union to boost economic opportunities in underserved communities in Alabama, Arkansas, Louisiana, Mississippi and Tennessee
- $25 million to Local Initiatives Support Corporation (LISC) as seed funding to establish the Black Economic Development Fund
- $10 million to The Change Co, to provide financing to Black homeowners
- $25 million to Enterprise Community Impact Note as seed funding to support initiatives fighting marginalized housing practices and to create affordable housing
- $10 million to OneUnited Bank
- $20 million to Calvert Impact Capital’s Community Investment Note to support housing in diverse communities
Since Sept. 30, 2021, the company reported $7.5 billion in cash and equivalents, Variety reported. Since the investment is two percent of its cash holdings, the $100 million investment is expected to increase over time.
“More capital moving into these institutions means more home and small-business loans, resulting in more opportunities for Black communities,” Aaron Mitchell, the HR director of Netflix Animation Studios and treasurer Shannon Alwyn, wrote.
Netflix is encouraging other companies to join the movement. “Together, we can contribute to more healing and progress for Black communities,” Alwyn and Mithcell wrote.
Additionally, Netflix will launch a web series titled “Banking On Us” which will highlight real stories of how business and homeowner loans impact local communities.
If you or someone you know is struggling from trauma triggered by this story, resources are available here.