Bank of America Surpasses Equity Investment Goal of $200M Increases Target to $350M to Support Minority Entrepreneurs
Bank of America announced today it has increased its target for equity investment in minority-focused funds from $200 million to $350 million. In less than a year, the company has committed more than $250 million to 90 investment funds across the U.S. These funds provide capital to Black, Hispanic-Latino, Asian, Native American, other under-represented minority and women entrepreneurs to help them establish and grow their businesses. Today’s announcement articulates the need for more capital in funds led by diverse managers as well as the need for more growth equity funding for the minority entrepreneurs they support.
Bank of America has also completed a total of 17 direct equity investments in minority depository institutions (MDI) and community development financial institution (CDFI) banks as part of its $50 million commitment made last year.
“Equity investments in minority-focused funds, MDIs and CDFI banks help address a persistent gap in access to growth capital,” said Brian Moynihan, CEO of Bank of America. “By providing this capital, we’re helping to level the playing field and open more doors for minority led businesses, entrepreneurs and innovation.”
These investments are a component of Bank of America’s $1.25 billion racial equality and economic opportunity commitment, which focuses 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.
Closed investments include, but are not limited to:
- Avenue Growth Partners – District of Columbia
- Cleveland Avenue – Chicago, Ill.
- Cleo Capital – San Francisco, Calif.
- e2JDJ – New Orleans, La.
- Elevate Capital – Portland, Ore.
- Greenwood, Inc. – Atlanta, Ga.
- Jumpstart Nova – Nashville, Tenn.
- L’Attitude Ventures – San Diego, Calif.
- MaC Ventures – Los Angeles, Calif.
- Noemis Ventures – New York, N.Y.
- Ulu Ventures – Palo Alto, Calif.
- Visible Hands – Boston, Mass.
- Zane Venture Fund – Atlanta, Ga.
The completion of these investments is subject to execution of documentation. View a list of previously announced closed funds.
MDIs and CDFI banks
Separate from the equity investment in minority focused funds, the company has also dedicated $50 million to support MDIs and CDFI banks. As part of this commitment, the company 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, Bank of America announced investments in additional MDIs. This brings the total completed investments in MDIs and CDFI banks to 17. New investments were made in the following organizations:
- Central Financial Holdings, Inc. – Tampa, Fla.
- Greater Pacific Bancshares (parent company of Bank of Whittier) – Whittier, Calif.
- The Native American Bancorporation Co. – Denver, Colo.
- PDL Community Bancorp (parent company of Ponce Bank) – Bronx, N.Y.
View a list of previously announced MDI and CDFI bank investments.
These equity investments are in addition to approximately $100 million in deposits from Bank of America in MDIs. The company also operates a $1.8 billion CDFI portfolio with 256 partner CDFIs across all 50 states, providing access to capital to thousands of individuals and small businesses who do not qualify through traditional lenders.
Investing and supporting minority communities
Since June 2020, Bank of America has already deployed $350 million across equity investments and philanthropic grants in the four areas outlined in its $1.25 billion racial equality and economic opportunity commitment. Additional Bank of America announcements focused on racial equality, diversity and inclusion and economic opportunity include:
- Bank of America providing $60 million fund for BIPOC affordable housing developers, first-of-its-kind fund will support Enterprise’s Equitable Path Forward initiative
- Bank of America directs over $22 million in grants to national and local nonprofits supporting people and communities of color
- Bank of America helps fuel Black innovation with launch of the Center for Black Entrepreneurship
- Bank of America triples affordable homeownership commitment to $15 billion
- World Economic Forum Launches Coalition to Tackle Racism in the Workplace, Bank of America founding member
- Bank of America directed more than $13 million to Native American communities hardest hit by the Coronavirus in 2020
- Top Business Leaders Launch OneTen, Will Create 1 Million Jobs for Black Americans Over 10 Years, Bank of America member
- Bank of America gives 21 higher education institutions $1 million each as part of recently announced $25 million jobs initiative
- Bank of America expands the Bank of America Institute for Women’s Entrepreneurship at Cornell
- Bank of America issues $2 billion Equality Progress Sustainability bond, first-of-its-kind broad ESG-themed security designed to advance racial equality, economic opportunity and environmental sustainability
- Founding partner of the Smithsonian’s “Our Shared Future: Reckoning with Our Racial Past” initiative exploring how Americans understand, experience and confront race
For recent highlights of the bank’s ESG efforts, view the Bank of America 2020 Annual Report.
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