The Local Initiatives Support Corporation has announced commitments totaling $175 million in support of its Black Economic Development Fund.
Recent investments include $50 million from PayPal, $25 million from Aflac Inc., and $12.5 million from HubSpot as part of the company's $20 million commitment to social impact investing. BEDF was established earlier this summer to support Black-led financial institutions, anchor institutions, and businesses working to strengthen rural and urban Black communities, with the goal of narrowing the racial wealth gap. The first allocations of capital from the fund are expected to be announced in the first quarter of 2021.
Aflac has a history of prioritizing inclusiveness dating back to the U.S. civil rights movement. "We are proud to continue that good work," said Aflac chair and CEO Daniel P. Amos, "[and are] thrilled to take part in LISC's Black Economic Development Fund. We view this as much more than just a financial investment; rather, we see it as an investment in society to help support schools, housing, and small businesses within Black 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. "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.”