On Tuesday, Netflix announced that they will put 2 percent of its cash holdings -an equivalent of approximately $100 million – to “financial institutions and organizations that directly support Black communities.”
The distribution of funds will start off with $35 million to be split between the Black Economic Development Initiative that will receive $25 million and Hope Credit Union will receive a deposit of $10 million.
Netflix’s plan to invest in Black communities launched earlier this year but was made high priority after the death of George Floyd and the intensifying racial climate that followed, the New York Times reported.
In a statement the company said, “We believe bringing more capital to these communities can make a meaningful difference for the people and businesses in them, helping more families buy their first home or save for college, and more small businesses get started or grow … The major banks, where big multinational companies including ours keep most of their money, are also focusing more on improving equity, but not at the grassroots level these Black-led institutions can and do. So we wanted to redirect some of our cash specifically toward these communities, and hope to inspire other large companies to do the same with their cash deposits.”
It is unclear how the remainder of the $100 million Netflix pledged will be distributed or the amount of time the company will take to distribute the total amount.