The Local Initiatives Support Corporation has announced a $25 million commitment from Costco in support of an impact investment fund aimed at supporting Black-led financial institutions and community development efforts.
Established earlier this summer, the Black Economic Development Fund will encourage corporations to make investments designed to improve economic opportunity for African Americans and close the racial wealth gap, which could end up costing the U.S. economy as much as $1.5 trillion by 2028 if not addressed. In support of those goals, the fund will make deposits in Black-owned banks and provide financing for minority businesses, charter schools, affordable housing projects, and athletic facilities.
"With this fund, we are talking about much more than bank deposits and loans," said LISC president and CEO Maurice A. Jones. "This is about investing in vibrant small businesses and growing local incomes. It's about directing capital toward a traditionally underserved population. At its core, this fund is focused on building a stronger future for Black communities and our country."
"We are thrilled to be a part of an investment strategy that will help some of the communities where we operate in the U.S.," said Costco president and CEO Craig Jelinek. "With LISC, we are supporting a more inclusive economy, to break down race and class as barriers to opportunity and growth."
(Photo credit: LISC)