Bank of America says its support for minority lenders tops $2 billion
“Our work with CDFIs is crucial to our ability to provide access to capital to thousands of individuals and small businesses who are the backbone of our local communities,” Chief Executive Brian Moynihan said in the release. The Charlotte, North Carolina-based company said it provides capital to more than 250 CDFIs across all US states.
American banks have long been accused of contributing to race-based inequality through exclusionary policies. And lenders have been pushed to do more to work with minority-run businesses since the murder of George Floyd last year by a police officer in Minneapolis. Banks responded by boosting community lending, taking stakes in lenders with diversified executives, and seeking to expand their own workforces.
CDFIs provide loans and other forms of assistance to low-income and otherwise underserved communities. Bank of America supports organizations through financing, including access to Paycheck Protection Program loans, and is one of the largest private investors in these companies.
In response to increased demand for support for small businesses at the height of the pandemic last year, Bank of America committed $250 million in new capital to CDFIs. He also pledged to spend $1.25 billion over five years to support racial equity.
“We are focused on delivering capital to areas where there are gaps in opportunity, and CDFIs are able to provide relief and make a real impact – responding and adapting quickly to deploy capital and practical advice when small businesses need it most,” Moynihan said. .