PayPal will deposit $135m into financial institutions and management funds to help underserved communities of colour fight economic inequality.
The institutions and funds that will receive the money include Hope Credit Union, CNote Wisdom Fund, Self-Help Federal Credit Union, One United Bank and a range of other smaller institutions.
According to PayPal, these investments are part of the company’s $535m commitment to bolster black businesses and underserved communities while also driving financial health, access and generational wealth creation.
The company claims it has now committed over $500m of capital through its racial equity initiatives, included a deposit in Optus Bank, an investment in LISC’s Black Economic Development Fund as well as a further 19 Black and Latinx-led venture capital funds. PayPal noted it is also in ‘active conversations’ with several additional financial institutions and expects to release more funds throughout the year.
Paypal president and CEO Dan Schulman said, “By partnering with financial institutions that have deep ties to Black and other underserved communities of colour, we can create economic opportunity and make tangible progress toward closing the racial wealth gap. Addressing systemic economic disparities and injustice will take sustained action across the private and public sectors. We are committed to doing our part to break the cycle of inequality.”
Self-Help Federal Credit Union president Steve Zuckerman added, “For more than 40 years, Self-Help has worked to create homeownership and economic opportunities for all. We are deeply committed to helping women, people and families of colour, and other underserved families to create and build wealth.
“Historic disparities have hindered fair access to credit and the ability to build generational wealth because of race, gender and nationality. PayPal’s investment in community development financial institutions, like Self-Help, will go a long way in the fight for economic equity; their investment with Self-Help will support our work to expand small businesses, housing and other economic opportunities for historically underserved communities.”
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