Paypal Set Aside $530 Million to Help Black Business

The current movement against the racial discrimination of blacks in the United States has triggered the support of some corporations and white-owned companies towards the plights of the blacks. Aside from the discrimination, most small businesses owned by blacks in the States are greatly affected by the ongoing coronavirus pandemic. In fact, some of these businesses are beginning to fold up due to financial issues. It is against this background that Paypal announced its interest in the predicament of the blacks.

On the 11th of June, Pay Pal - one of the thriving digital finance companies in the United State - set aside a sum of $530 to help black-owned small businesses affected with the economic impact of the coronavirus pandemic. As part of its investment, the company is also bolstering its internal program so as to increase diversity, equity, and inclusion within the PayPal community. The company states that:

"For far too long, Black people in America have faced deep-seated injustice and systemic economic inequality. Black lives matter and we need to drive transformative change. We must take decisive action to close the racial wealth gap that sustains this profound inequity," said Dan Schulman, president, and CEO, PayPal. "PayPal is uniquely positioned to help in this area, and we are committed to doing our part to address the unacceptable racial divide by advancing a more just economy and society. We've listened to leaders in the Black community about the challenges facing Black business owners and the support and investments needed to sustain Black-owned businesses and create long-term economic opportunities. The holistic set of initiatives we are implementing are designed to help address the immediate crisis and set the foundation for sustained engagement and progress towards economic equality and social justice."

Black Companies That Would Be Benefiting From The Offer

Although there is a misconception that the black-owned businesses that would be benefiting from the donation are those situated in the city of Philadelphia, this has been corrected. Black-owned small businesses across the United States would all benefit from the offer.

In the above statement of the CEO, the aim of the project is to ensure that some of the black businesses that are worst hit by the coronavirus pandemic would not become extinct due to financial issues. The project is aimed to enhance the continuity of the small black businesses across the United States.

How PayPal Plans To Support Black Business

PayPal intends to use $500 million out of the money to create a fund that will invest directly in black-owned minority firms and start-ups. The fund will be created through the PayPal investment arm known as "PayPal venture." Also, the company will be working with community banks and credit unions that invest in underrepresented minority communities. This would help to ensure that the money gets to the targeted audience. 

The Association for Enterprise Opportunity in Washington, DC would be supervising an additional $10,000 from PayPal and the money would be used to administer $10,000 grants to 1,000 black-owned businesses across the country.

"AEO advocates for economic inclusion and works to create transformational change in the marketplace for small businesses," said Connie Evans, president, and CEO, Association for Enterprise Opportunity (AEO). "Now, more than ever, it's critical to invest in Black-owned businesses, create a more equitable system and break through the barriers that have historically challenged Black business ownership and wealth creation."

Added to this, PayPal has set aside $5 million in the form of grants to black-owned businesses thereby providing an opportunity for black business owners to benefits from microloans, technical assistance information, access to digital solutions, and mentoring.

As part of the project, the Women’s Opportunities Resource Center located at Chestnut Street in Philadelphia would be getting a $50,000 demonstration grant. The group is among the 10 community-oriented nonprofit lenders that would be benefiting from the grants. Others include Chicago Neighborhood Microfinance groups, Baltimore Business Lending, and the Nebraska Enterprise Fund.

Also included in the project, PayPal would be spending $15 million to bolster its internal diversity.

Information About PayPal Company

For more than 20 years now, Paypal has remained in the top list of the best digital payment company. The company focuses on using technology to make it easy for individuals and countries to engage in business transactions. With technology, PayPal made it easy to transfer money and receive money from countries around the world. Their charges are very affordable and their service is superb. The company is currently empowering than 300 million consumers across the world. It is also empowering more than 200 markets to join the global economy.

Paypal is managed by CEO Daniel Schulman. As of 2019, PayPal's net worth is $2.459 billion, total asset is $51.333 billion, total equity is $16.929 billion and the total number of employees is 21,800. Since the company carries out most of its transactions online, it is not affected by the coronavirus pandemic. In fact, Daniel Schulman in one of his statements revealed that the coronavirus has given his business a “tremendous surge.” For more information on Paypal, visit https://c212.net/c/link/?t=0&l=en&o=2827302-1&h=3703176944&u=https%3A%2F%2Faeoworks.org%2F&a=aeoworks.org