The streaming service allows 2% of cash or an estimated $ 100 millionhas transformed lending to minority borrowers into Black-capital financial institutions and community development organizations with a better history than general consumer banks.
Minority banks and credit unions represent only 1% of America’s total commercial banking assets.
“We believe that bringing more capital to these communities can make a meaningful difference for the people and businesses in it, help more families buy their first homes or save college, and start or grow smaller businesses,” Netflix said in a statement. Said.
As part of the initiative, the company is investing $ 25 million in New York-based companies. Local Initiatives Support Companya development finance company with 35 offices nationwide and supporting Black entrepreneurs in various businesses.
LISC President and CEO Maurice Jones Most black companies said it was the only property with up to 10 employeesannual revenues$ 1 million and generally not prioritized by large commercial banks like chase(CCF), Bank of America(BAC)or Wells fargo(CBEAX).
He told Netflix that he was approaching his organization for the first time on a potential deal after George Floyd’s Minneapolis police officer was killed on May 25th, and this started a national account on systemic racism.
“What I remember is that they reached us after we saw the business we invested in small businesses, especially businesses managed by colorful people,” Jones told CNN Business. Said.
Approximately 10% of Netflix’s $ 100 million investment Umut Credit UnionFinancing underserved communities in the Deep South
Jones said Netflix is one of the few major companies that have invested in LISC over the past three weeks. He said that the financial institutions that Black owned had “never seen anything like this” support since Floyd’s murder, but stated that support should continue over the years if companies want to close the country’s racial wealth. space.
“Endurance, loyalty, as we have done in Europe for years, Marshall plan “Jones asked.” If we build black wealth and minority communities in this country, it will be good for them and for the economic health of the country. “