PayPal commits support for minority-owned businesses
Investment designed to help drive financial health
OW Staff Writer | 6/25/2020, midnight
PayPal Holdings, Inc. (NASDAQ: PYPL) announces a $530 million commitment to support Black and minority-owned businesses and communities in the U.S., especially those hardest hit by the pandemic, to help address economic inequality. As part of its investment, the company is bolstering its internal programs to further increase diversity, equity and inclusion within the PayPal community.
“For far too long, Black people in America have faced deep-seated injustice and systemic economic inequality. Black lives matter and we need to drive transformative change. We must take decisive action to close the racial wealth gap that sustains this profound inequity,” said Dan Schulman, president and CEO, PayPal. “PayPal is uniquely positioned to help in this area, and we are committed to doing our part to address the unacceptable racial divide by advancing a more just economy and society. We’ve listened to leaders in the Black community about the challenges facing Black business owners and the support and investments needed to sustain Black-owned businesses and create long-term economic opportunity.
“The holistic set of initiatives we are implementing are designed to help address the immediate crisis and set the foundation for sustained engagement and progress towards economic equality and social justice,” Schulman said.
The commitment includes short-term, medium-term, and long-term investments in the community:
• $500 million Economic Opportunity Fund to support and strengthen Black-owned businesses and community organizations over the long term - designed to help drive financial health, access, and generational wealth creation. Business owners and entrepreneurs are invited to begin the application process
• $10 million partnership fund with the Association for Enterprise Opportunity
Organizations that are already receiving grants through the fund include:
• Association for Enterprise Opportunity (Washington DC)
• Kiva (San Francisco)
• Opportunity Fund (California)
• Start Small Think Big (California)
“AEO advocates for economic inclusion and works to create transformational change in the marketplace for small businesses,” said Connie Evans, president and CEO, Association for Enterprise Opportunity (AEO). “Now, more than ever, it’s critical to invest in Black-owned businesses, create a more equitable system and break through the barriers that have historically challenged Black business ownership and wealth creation.”
PayPal is committing $15 million to strengthen its internal diversity and inclusion programs to foster greater awareness, build equity, and support recruiting, hiring and career advancement of Black and minority employees. This also includes increased funding for the company’s employee resource groups as well as supporting community partners through pro bono work and secondments by its employees.
These initiatives build on the extensive financial health and small business empowerment programs PayPal already supports. They will add a particular emphasis on Black-owned businesses, sharpen the focus of that work, accelerate the deployment of PayPal’s resources and fuel employee engagement.