SAN JOSE, Calif., June 2, 2021
/PRNewswire/ -- PayPal Holdings, Inc. (NASDAQ: PYPL) today
announced it will deposit $135 million of its
capital into mission-driven financial institutions and
management funds that help underserved communities of color to
fight barriers to economic equity, including Hope Credit Union, OneUnited Bank,
Self-Help Federal Credit Union, CNote's Wisdom
Fund and various smaller institutions through a CNote Promise
Account. These investments are part of PayPal's $535
million commitment to strengthen Black businesses and underserved
communities, and help drive financial health, access and
generational wealth creation.
With these deposits, PayPal has now committed more
than $500 million of capital
through its racial equity initiatives, including a deposit
in Optus Bank; an investment in LISC's Black Economic
Development Fund; investments in 19 Black and Latinx-led venture
capital funds; and grants to Black-owned small businesses
and community nonprofits that support them. PayPal is in
active conversations with several additional financial
institutions and expects to deploy more funds throughout
the year.
"By partnering with financial institutions that have deep
ties to Black and other underserved communities of color, we
can create economic opportunity and make tangible
progress toward closing the racial wealth gap," said Dan Schulman, president and CEO, PayPal.
"Addressing systemic economic disparities and injustice will
take sustained action across the private and public sectors.
We are committed to doing our part to break the cycle of
inequality."
"Financial institutions owned by people of color play an
outsized role in closing the racial wealth gap by providing greater
access to financing for diverse business owners and homebuyers,"
said Bill Bynum, CEO, Hope Credit Union. "Unfortunately, investment in
these institutions and the communities they serve has never been
adequate. PayPal's strategy recognizes that in an increasingly
diverse nation, investing in racial equity is not only the right
thing to do, but it's good for business."
"PayPal's investment in the Promise Account will mobilize
deposits across CNote's nationwide network of mission-driven
depository institutions, fostering greater capital access and
economic justice for communities of color," stated Catherine Berman, CEO, CNote. "PayPal's Wisdom
Fund commitment is an investment in the future of women of color,
providing the loan capital, business coaching and funding research
to fuel greater economic freedom and wealth creation for BIPOC
women business owners across America. Working together, we can help
address the system, not just the symptoms, behind economic
inequality in America."
"Partnerships between America's leading corporations, like
PayPal, and Black-owned institutions like OneUnited Bank,
are critical to creating the access to capital needed to address
the economic challenges of underserved communities," said
Kevin Cohee,
chairman and CEO, OneUnited Bank. These
types of deposits make lending and social justice programs
possible. OneUnited Bank looks forward to continuing to
build this relationship with PayPal as we fight to eradicate the
racial wealth gap."
"For more than 40 years, Self-Help has worked to create
homeownership and economic opportunities for all. We are deeply
committed to helping women, people and families of color, and other
underserved families to create and build wealth," shared
Steve Zuckerman,
president, Self-Help Federal Credit Union. "Historic
disparities have hindered fair access to credit and the ability to
build generational wealth because of race, gender and nationality.
PayPal's investment in community development financial
institutions, like Self-Help, will go a long way in the fight for
economic equity; their investment with Self-Help will support our
work to expand small businesses, housing and other economic
opportunity for historically underserved communities."
About the Banks and Funds
CNote Promise Account
The CNote Promise Account is a cash management solution designed
for FDIC and NCUA insurance coverage that provides institutions a
single management point for deposits targeting competitive returns
and positive social impact.
CNote Wisdom Fund
The Wisdom Fund is a fixed income vehicle that increases capital
access and lending for women-owned businesses. It is a co-created
effort to bring new thinking, experimentation and sustainable
solutions to drive wealth creation for women of color in the United
States.
Hope Credit
Union
HOPE (Hope Enterprise Corporation, Hope Credit Union and Hope
Policy Institute) provides financial services; aggregates
resources; and engages in advocacy to mitigate the extent to which
factors such as race, gender, birthplace and wealth limit one's
ability to prosper. Since 1994, HOPE has generated more than
$2.9 billion in financing that has
benefitted more than 1.7 million people in Alabama, Arkansas, Louisiana, Mississippi and
Tennessee.
OneUnited
OneUnited Bank is the premier bank for urban communities, the
largest Black-owned bank, the first Black internet bank and a
Community Development Financial Institution (CDFI). Its mission is
to provide affordable financial services to support economic
development in urban communities and maintain superior financial
performance to maximize shareholder value. OneUnited is
an FDIC insured bank and an equal housing lender.
Self-Help Federal Credit Union
Self-Help Federal Credit Union was chartered in 2008 to build a
network that serves working families and underserved
communities. Now with over $1.6 billion in assets, Self-Help
Federal is one of the fastest-growing community development
financial institutions in the country, serving more
than 97,000 members in 35 branches - 19 in California, six in
Washington, eight in Illinois, and
two in Wisconsin. It is part of the Self-Help family of non-profit
organizations whose collective mission is to create and protect
ownership and economic opportunity for all. For 41 years, Self-Help
has worked nationally to provide almost $10 billion in financing to
help over 184,000 limited wealth borrowers buy homes, start and
build businesses, and strengthen community resources. For more
information, go
to www.self-helpfcu.org and www.self-help.org.
About PayPal
PayPal has remained at the forefront of the digital payment
revolution for more than 20 years. By leveraging technology to make
financial services and commerce more convenient, affordable, and
secure, the PayPal platform is empowering more than 375 million
consumer and merchant accounts in more than 200 markets to join and
thrive in the global economy. For more information, visit
paypal.com.
Media Contact
Janine Kamwene
jkamwene@paypal.com
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SOURCE PayPal Holdings, Inc.