BofA Allocates $300M to Racial Equality and Economic Opportunity Initiatives; Part of $1B Commitment
Bank of America announced that it has selected specific initiatives to direct $300 million for the advancement of racial equality and economic opportunity across 4 key areas and 91 U.S. markets and globally. The announcement marks the first allocation of BofA’s 4-year, $1 billion commitment, made in June of this year.
The key areas and allocations selected by the bank include:
- $25 million in initial grant funding in support of jobs initiatives. Funds will enhance up-skilling and reskilling for Black and Hispanic/Latino individuals through partnerships with 11 community colleges that serve predominantly Black and Hispanic/Latino students, and 10 public Historically Black Colleges and Universities (HBCU), and Hispanic Serving Institutions (HSI). Bank of America will also work with major employers in each select market to ensure these programs target specific hiring needs.
- $25 million in initial community outreach and initiatives. Initiatives include philanthropic support, such as personal protection equipment, to underserved and minority communities adversely impacted by the global health and humanitarian crisis.
- $50 million allocated to direct equity investments in MDIs. According to BofA, investments in Minority Depository Institutions (MDIs) will facilitate benefits to the communities they serve through lending, housing, neighborhood revitalization and other banking services. The bank stated that three MDI investments have already been completed for approximately 5% of the common equity in each bank holding company, and discussions are in progress with several other Black and Hispanic MDIs serving low-and moderate-income communities.
- $200 million allocated to direct equity investments in minority entrepreneurs, businesses and funds. Bank of America announced plans to make direct equity investments over 4 years in Black- and Hispanic-owned businesses to help supply growth capital as well as to invest substantially in programs to create future entrepreneurs. The company expects to make further announcements related to these direct investments shortly.
Brian Moynihan, CEO of Bank of America, said:
“These initial investments will address access to jobs and support for small businesses by creating more pathways to employment in communities of color and more support for minority entrepreneurs.”
Bank of America’s $1 billion, four-year initiative is being overseen by Anne Finucane, Vice Chairman of Bank of America and Head of Environmental, Social and Governance (ESG), Capital Deployment and Public Policy, in coordination with several business lines and business support areas across the company.