Netflix Shifts $100 Million to Black Banks to Close Equity Gap

Netflix logo on computer screen)

Netflix has transferred $100 million to Black banks in the U.S. as part of an effort to help close the equity gap.

The $100 million equals about 2 percent of the streamer’s holdings, and is part of its pledge to address systemic racism.

“More capital moving into these institutions means more home and small-business loans, resulting in more opportunities for Black communities,” Netflix said in a Dec. 1 announcement.

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The streamer’s co-CEO Ted Sarandos is married to Nicole Avant, daughter of music legend Clarence Avant and Jackie Avant, 81, who was killed during a break-in Wednesday at her Beverly Hills home.

As part of its financial pledge, Netflix cited examples of people who are benefiting from investments in the Black community, such as Dominique Lumpkin, who just bought her first home in Memphis. Lumpkin obtained a home loan after Netflix’s early investment in Hope Credit Union, a community development financial institution (CDFI) that serves underbanked communities in Alabama, Arkansas, Louisiana, Mississippi and Tennessee.

The company is sharing stories like Lumpkin’s in a new web series called “Banking On Us” on its YouTube channel.

Below is a list of financial institutions benefiting from Netflix’s $100 Million Pledge.

  • $10 million was deposited with Hope Credit Union in the form of a Transformational Deposit to fuel economic opportunity in underserved communities in Alabama, Arkansas, Louisiana, Mississippi and Tennessee.
  • $25 million was invested as seed funding to establish the Black Economic Development Fund, managed by the Local Initiatives Support Corporation (LISC).
  • $10 million was invested with The Change Company to finance more Black homeowners fairly and responsibly.
  • $25 million was invested as seed funding for the Enterprise Community Impact Note to support its Equitable Path Forward initiative. The initiative supports historically marginalized housing providers in creating and preserving affordable homes in diverse communities.
  • $10 million was deposited with OneUnited Bank as the start of an ongoing relationship.
  • $20 million was invested in Calvert Impact Capital’s Community Investment Note. The funds are earmarked to support housing and community development projects focused on U.S. BIPOC communities.