Photo: Getty Images
Bank of America Corp (BAC.N) has pledged over $500 million in equity investments to funds led by minority and women entrepreneurs, which is over two times more than its initial commitment of $200 million.
On Thursday (June 15), the bank said the equity investments will go to more than 150 funds, which have invested in over 1,000 companies across the country, per Reuters. These companies are headed by 1,500 diverse entrepreneurs and employ over 21,000 people.
"As a company, we looked at how to support women and diverse entrepreneurs," Tram Nguyen, global head of Strategic and Sustainable Investments at Bank of America, told Reuters."Capital to under-resourced entrepreneurs has the effect of unlocking their potential to grow their businesses locally and to create economic opportunity.".
Founded by Nasir Qadree, Zeal Capital Partners is one of the funds that will receive equity investments to provide other founders with the resources they need to grow their businesses to the next level. Zeal Capital Partners is an investor in Esusu, a Black-owned "unicorn," which is a term used to refer to unlisted companies that have a valuation of $1 billion.
Bank of America is among several banking giants that expanded their racial equity pledges in the wake of the 2020 police killing of George Floyd.
"Each time we support a minority or women-led fund, they in turn support diverse entrepreneurs, which ultimately helps us toward achieving our goal to advance racial equality and economic opportunity," Nguyen said.
The Black Information Network is your source for Black News! Get the latest news 24/7 on The Black Information Network. Listen now on the iHeartRadio app or click HERE to tune in live.