With these deposits, PayPal has now committed more than $ 500 millions of capital through its racial equity initiatives, including a deposit in Optus Bank; an investment in LISC’s Black Economic Development Fund; investments in 19 venture capital funds led by Black and Latinx; and grants to black-owned small businesses and the community-based nonprofit organizations that support them. PayPal is in active talks with several other financial institutions and plans to deploy more funds throughout the year.
“By partnering with financial institutions that have strong ties to blacks and other underserved communities of color, we can create economic opportunities and make tangible progress towards closing the racial wealth gap,” he said. declared Dan Schulman , President and CEO, PayPal. “Tackling systemic economic disparities and injustice will require sustained action in the private and public sectors. We are committed to doing our part to break the cycle of inequality. ”
“Financial institutions owned by people of color play a disproportionate role in bridging the racial wealth gap by providing greater access to finance for various business owners and home buyers,” said Bill Bynum , CEO, Hope Credit Union . “Unfortunately, investing in these institutions and the communities they serve has never been adequate. PayPal’s strategy recognizes that in an increasingly diverse nation, investing in racial equity isn’t just the right thing to do, it’s good for business.
“PayPal’s investment in the Promise account will leverage deposits across CNote’s nationwide network of mission-driven depository institutions, promoting greater access to capital and economic justice for communities of color,” said Catherine berman , CEO, CNote. “PayPal’s Wisdom Fund commitment is an investment in the future of women of color, providing loan capital, business coaching and fundraising to fuel greater economic freedom and wealth creation. for women BIPOC business owners across America. By working together, we can help fight the system, not just the symptoms, behind economic inequality in America. ”
“Partnerships between major US corporations, like PayPal, and black-owned institutions like OneUnited Bank, are critical in creating access to the capital needed to meet the economic challenges of underserved communities,” said Kevin cohee , President and CEO, OneUnited Bank. These types of deposits make loan and social justice programs possible. OneUnited Bank looks forward to continuing to build this relationship with PayPal as we fight to eradicate the racial wealth gap. ”
“For over 40 years, Self-Help has strived to create homeownership and economic opportunities for all. We are deeply committed to helping women, people and families of color, and other underserved families create and build wealth, ”shared Steve zuckerman , President, Self-Help Federal Credit Union. “Historical disparities have hampered fair access to credit and the ability to build generational wealth due to race, gender and nationality. PayPal’s investment in community development financial institutions, such as Self-Help, will go a long way in the fight for economic equity; their investment with Self-Help will support our work to develop small businesses, housing and other economic opportunities for historically underserved communities.
About banks and funds
CNote Promise Account
The CNote Promise account is a cash management solution designed for FDIC and NCUA insurance coverage that provides institutions with a single point of management for deposits targeting competitive returns and positive social impact.
CNote Wisdom Fund
The Wisdom Fund is a fixed income vehicle that increases access to capital and loans for women-owned businesses. This is a co-created effort to bring new thinking, experimentation, and sustainable solutions to spur wealth creation for women of color in the United States.
Hope Credit Union
HOPE (Hope Enterprise Corporation, Hope Credit Union and Hope Policy Institute) provides financial services; aggregates resources; and engages in advocacy to mitigate the extent to which factors such as race, gender, place of birth and wealth limit its ability to thrive. Since 1994, HOPE has generated more than $ 2.9 billion in funding that has benefited more than 1.7 million people in Alabama , Arkansas , Louisiana , Mississippi and Tennessee.
OneUnited Bank is the premier bank for urban communities, the largest black-owned bank, the leading black internet bank, and a Community Development Financial Institution (CDFI). Its mission is to provide affordable financial services to support the economic development of urban communities and maintain superior financial performance in order to maximize shareholder value. OneUnited is an FDIC insured bank and equal mortgage lender.
Federal mutual aid credit union
Self-Help Federal Credit Union was formed in 2008 to create a network serving working families and underserved communities. With now over $ 1.6 billion in assets, Self-Help Federal is one of the fastest growing community development financial institutions in the country, serving over 97,000 members in 35 branches – 19 in California, six in Washington , eight in Illinois and two in Wisconsin. It is part of the Self-Help family of nonprofit organizations whose collective mission is to create and protect property and economic opportunity for all. For 41 years, Self-Help has worked nationwide to provide nearly $ 10 billion in financing to help more than 184,000 low-net-worth borrowers buy homes, start and build businesses, and strengthen community resources. For more information, visit www.self-helpfcu.org and www.self-help.org.
PayPal has been at the forefront of the digital payment revolution for over 20 years. By leveraging technology to make financial services and commerce more convenient, affordable and secure, the PayPal platform enables more than 375 million consumer and merchant accounts in more than 200 markets to join and thrive in the global economy. For more information, visit paypal.com.
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SOURCE PayPal Holdings, Inc.