On June 2, 2020, Bank of America made a $1 billion, four-year commitment to advance racial equality and economic opportunity, of which $200 million was allocated to support Black, Hispanic-Latino, other under-represented minority and women entrepreneurs. Today, Bank of America announced it will invest approximately $150 million in 40 funds, based in 21 markets across the U.S. These investments will underscore Bank of America’s ongoing efforts to address the persistent gap in access to growth capital for minority-led businesses.
“By accelerating the flow of capital into funds focused on investing in Black, Hispanic-Latino, other under-represented minority and women-led businesses, we can help level the playing field,” said Brian Moynihan, CEO of Bank of America. “These funds support diverse entrepreneurs across the U.S. and will drive innovation and economic opportunities, creating more jobs and wealth in communities.”
In addition to their focus on investing in minority-led businesses, these funds are predominately led by diverse fund managers. Representative funds include but are not limited to:
- Fearless Fund – Atlanta, Ga.
- Harlem Capital – New York, N.Y.
- The Marathon Fund – Washington, D.C.
- New Community Transformation Fund – Grand Rapids, Mich.
- Reign Ventures – New York, N.Y.
- Serena Ventures – San Francisco, Calif.
- TMV – New York, N.Y.
- VamosVentures – Los Angeles, Calif.
- Zeal Capital Partners – Washington, D.C.
The completion of these investments is subject to execution of documentation.
These investments are one component of Bank of America’s $1 billion commitment to racial equality and economic opportunity. This commitment is focused on addressing and advancing social issues in minority populations, such as health, jobs, education, housing and capital inequality, and will facilitate benefits across multiple states and communities.
Investing in Minority Depository Institutions
As part of its $1 billion commitment, Bank of America dedicated $50 million to support minority depository institutions (MDIs) and community development financial institution (CDFI) banks. As part of these equity investments Bank of America will acquire up to 4.9% of common equity in MDIs and CDFI Banks facilitating benefits in the communities that these institutions serve through lending, housing, neighborhood revitalization, and other banking services.
Today the company also announced investments in two additional MDIs, bringing the total to 12:
- Broadway Financial Corporation*
- Carver Bancorp, Inc.
- Carver Financial Corporation
- CNB Bancorp, Inc. (parent of Commonwealth National Bank)
- CSB&T Bancorp, Inc. (parent company of Citizens Savings Bank and Trust)
- First Independence Corporation
- Liberty Financial Services, Inc.
- M&F Bancorp, Inc.
- MNB Ventures, Inc.*
- SCCB Financial Corp. (parent company of Optus Bank)
- Southern Bancorp, Inc.
- Unity National Bank of Houston, N.A.
*Denotes newly announced investment
These equity investments are in addition to approximately $100 million in deposits from Bank of America in MDIs. The company also operates a $1.6 billion CDFI portfolio with 255 partner CDFIs across all 50 states, providing access to capital to thousands of individuals and small businesses who do not qualify through traditional lenders.
Recent Bank of America announcements focused on racial equality, diversity and inclusion and economic opportunity include:
- Directed More Than $13 Million to Native American Communities Hardest Hit by the Coronavirus in 2020
- Joined CVS Health to Fund and Deliver Free Flu Vaccine Vouchers
- 21 Higher Education Institutions receive $1 Million Each as Part of $25 Million Jobs Initiative
- Ten Completed Equity Investments in Minority Depository Institutions and Community Development Financial Institution Banks
- $2 billion Equality Progress Sustainability Bond.
- Universal ESG Reporting; International Business Council of World Economic Forum.
- Top Global Bank on Fortune “Change the World” List.
- Increasing representation of diverse asset managers across the industry.
- Expanding support of Boys & Girls Clubs of America with $1 million grant to support educational programs.
- Committing $100,000 to Athena Alliance to support underrepresented women.
- Partnership with iHeartMedia to bring first-of-its-kind national audio news service to the Black community.
- Smithsonian announces “Race, Community and Our Shared Future” initiative, Bank of America commits $25 million.
- $1 Billion, four-year commitment to support economic opportunity initiatives.
- Committing $250 million in capital and $10 million in philanthropic grants to CDFIs.
Bank of America
At Bank of America, we’re guided by a common purpose to help make financial lives better, through the power of every connection. We’re delivering on this through responsible growth with a focus on our environmental, social and governance (ESG) leadership. ESG is embedded across our eight lines of business and reflects how we help fuel the global economy, build trust and credibility, and represent a company that people want to work for, invest in and do business with. It’s demonstrated in the inclusive and supportive workplace we create for our employees, the responsible products and services we offer our clients, and the impact we make around the world in helping local economies thrive. An important part of this work is forming strong partnerships with nonprofits and advocacy groups, such as community, consumer and environmental organizations, to bring together our collective networks and expertise to achieve greater impact. Learn more at about.bankofamerica.com, and connect with us on Twitter (@BofA_News).