Bank of America Invests $300M in Black Banks and Businesses

To show its support for racial equity and economic equality, Bank of America announced an investment fund worth $300 million as part of its $1 billion pledge to support black and brown-led banks and businesses.

The funds in the investment will be split into four parts: $200 million will go to black and brown businesses and entrepreneurs; $50 million will go to minority depository institutions; $25 million to community outreach; and $25 million will be allocated to job initiatives in black and brown communities across the United States.

“These initiatives 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,” said Chairman and CEO, Brian Moynihan in a press release.  

The Bank of America earlier in June announced its $1 billion four-year commitment which is targeted towards supporting local communities across the nation. According to Black Enterprise, three minority depository institutions are set to receive $50 million from Bank of America to help the banks improve their services and become more profitable.

American Banker also reports that Bank of America has completed the investments for Liberty Financial Services (New Orleans), First Independence Corp. (Detroit), and SCCB Financial Corp. (Columbia, S.C.). All investments amount to nearly 5 percent of each bank’s common equity.

Bank of America is yet to disclose the other black and brown-owned businesses and financial institutions that will benefit from its billion-dollar fund. The banking company’s commitment to supporting the black community is traced to the June protests, stirred by the unlawful killing of George Floyd and other unarmed blacks who were killed.

In addition to its support for racial equity, Bank of America has also assisted HBCU’s community colleges, and Hispanic-serving universities, alongside other minority-owned educational institutions.

Bank of America’s Vice Chairman, Anne Finucane in a statement said the banking company is “focused on building a stronger hiring pipeline for Black and Hispanic/Latino students in local communities”.