BLACK ENTERPRISE reported on Paypal’s $530 million commitment to end racial disparities and advancing social change. This week, the payment processing company announced it will invest $50 million to the Local Initiatives Support Corporation (LISC) for their Black Economic Development Fund.
“We strongly believe that access to capital and financial services is critical to growing and sustaining vibrant communities,” said Franz Paasche, senior VP of Corporate Affairs at PayPal in a press statement sent to BE.“
LISC, with its decades-long history of expanding inclusive economic opportunity, is an important partner in our long-term commitment to close the racial wealth gap.”
The funds were apart of a $175 million investment made by a few other corporations like HubSpot, Netflix, Square and Costco to provide resources for Black entrepreneurs and communities. The investment firm said they will use funds to be distributed as capital for financial assistance for those recovering from the COVID-19 pandemic. It will also go to help their Project 10X initiative to address racial disparities in wealth and other areas that affect marginalized communities.
“These are game-changing investments that will help tackle racial injustice, build up the American consumer base and grow our economy,” said George Ashton, managing director of LISC Strategic Investments, in a statement. “We’re seeing some of the most dynamic corporations in the country align their treasury strategies with their missions by investing a portion of their assets in this fund.”