Netflix to move $100 million of its cash into Black-owned banks

Netflix on Tuesday pledged $100 million as part of its “commitment to racial equity.” The streaming giant said it will allocate 2% of its cash holdings, initially up to $100 million, into financial institutions and organizations that directly support Black communities in the US.

To start, Netflix said $35 million of its $100 million commitment will be placed in two vehicles. The company will move $25 million to the newly created Black Economic Development Initiative to invest in Black financial institutions serving low- and moderate-income communities. Another $10 million will go to the Hope Credit Union, Netflix said, to “fuel economic opportunity in underserved communities across the Deep South.”

Banks that are Black-owned or Black-led represent just 1% of the country’s commercial banking assets, Netflix said, citing the Federal Deposit Insurance Corporation.

“We believe bringing more capital to these communities can make a meaningful difference for the people and businesses in them, helping more families buy their first home or save for college, and more small businesses get started or grow,” said Netflix’s Aaron Mitchell and Shannon Alwyn in a release.

Netflix reportedly expects to distribute the remaining $65 million by the end of 2020.

Earlier this month, Netflix CEO Reed Hastings and his wife, Patty Quillin, said they would donate $120 million to historically black colleges and universities. The donation will be split among Morehouse College, Spelman College and the United Negro College Fund. 

Netflix is one of the many tech firms to make donations and financial commitments in support of racial equality following nationwide protests sparked by the killing of George Floyd by police. 

Hastings also donated $1 million to the Center for Policing Equality.