ANOTHER BIG INVESTMENT IN RACIAL JUSTICE. Square’s $100 million plan to invest in Black communities.
Jack Dorsey’s financial company — known for its credit-card readers, Cash payments app and Square Capital lending program — plans to announce today that it will invest in an array of funds and lenders focused on underserved communities of color, joining a growing number of big businesses taking on racial economic inequality.
Square promises to invest $100 million, or about 3 percent of its cash, in four chunks:
• $25 million in deposits at Community Development Financial Institutions, or C.D.F.I.s, and Minority Depository Financial Institutions, or M.D.I.s. By parking some of its cash with these firms — much as Netflix has said it would — Square hopes to bolster their ability to lend in underserved communities.
• $25 million in The Keepers Fund, a vehicle sponsored by the National Bankers’ Association meant to invest in M.D.I.s.
• $25 million in the Black Economic Development Fund, which was created by the Local Initiatives Support Corporation to support Black-led banks and businesses.
• $25 million will be reserved for future programs.
… Mr. Dorsey, who has publicly supported the Black Lives Matter movement, has personally pledged $1 billion to relief programs tied to the pandemic. And the company’s Square Capital division distributed more than $870 million in small-business loans through the federal government’s Paycheck Protection Program.
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