Netflix is committing $100 million to reduce the racial wealth gap, and it is kicking off the effort with a $25 million partnership with LISC.
LISC is expanding its capacity to bridge racial gaps in health and wealth, thanks to a new $25 million investment from Netflix. The media giant is reallocating 2 percent of its cash holdings from global banks to support Black-owned lenders, businesses and institutions that can, in turn, expand access to capital and opportunity in underserved communities.
LISC’s fund management team is leading the effort, known as the Black Economic Development Initiative, and will deploy the capital as bridge loans, participation loans and bank deposits in Black-owned institutions—all of which expands the capital available to business owners and residents.
LISC is among the first Netflix investments in what is an initial $100 million commitment to this important work. “If every company in the S&P 500 allocated a modest amount of their cash holdings into efforts like the Black Economic Development Initiative, each 1 percent of their cash would represent $20-$30 billion of new capital,” Netflix said. “And that would help build stronger communities, offering more Black families pathways to prosperity and a more equitable future.”
Read more about Netflix’ commitment to Black communities, announced today, which includes its $25 million partnership with LISC as well as $10 million for Hope Credit Union.
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