Posted: June 30, 2020 at 12:10 PM ET
Netflix said Tuesday it would allocate 2 percent of its cash holdings to support black communities.
Bloomberg News / Landov
Netflix Inc. announced an effort Tuesday to increase economic opportunities for black communities by allocating money to banks and other institutions that help provide financial support.
The company plans to allocate 2 percent of its cash holdings, or up to $ 100 million initially, to financial institutions and other groups “that directly support black communities in the United States.”
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He argues in a blog post that such efforts can help bridge the “centuries-old financial gap between black and white families” in the US.
“We believe that bringing more capital to these communities can make a significant difference to the people and businesses that comprise them, helping more families buy their first home or save for college, and more small businesses start or grow,” he wrote. Aaron, director of talent acquisition at Netflix. Mitchell and Treasury Director Shannon Alwyn in the post. They cited statistics from the Federal Deposit Insurance Corporation that black-owned or black-led banks account for just 1 percent of commercial banking assets in the U.S.
Read: After years of talks, tech companies seem to be taking diversity efforts seriously
Initially, the company is allocating $ 35 million of its $ 100 million commitment to two vehicles. Netflix will designate $ 10 million for Hope Credit Union in an effort to boost economic opportunities in the deep south. The company will have $ 25 million in a newly established fund called the Black Economic Development Initiative that will be managed by the Nonprofit Local Initiatives Support Corporation.
Netflix Joins Apple Inc.
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,
PayPal Holdings Inc.
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Alphabet Inc.’s
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YouTube and other tech stalwarts who are financially committed to helping black and minority communities.
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Netflix shares have gained 22% in the past three months as the S&P 500
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It is up 17%.
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