PayPal yesterday announced a $530 million commitment to support Black and minority-owned businesses and communities in the U.S., especially those hardest hit by the pandemic.

“For far too long, Black people in America have faced deep-seated injustice and systemic economic inequality,” said Dan Schulman, president and CEO, PayPal. “We must take decisive action to close the racial wealth gap that sustains this profound inequity,”

PayPal says it is uniquely positioned to help in this area and laid out short-term, medium-term, and long-term investments in the community:

“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.”

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$10 million fund for empowerment grants to Black-owned businesses impacted by COVID-19 or civil unrest. These grants will provide direct support to business owners to cover expenses related to stabilizing and reopening their businesses. The fund will be managed in partnership with the nonprofit Association for Enterprise Opportunity. Interested businesses can
apply for a grant, here.

$5 million fund for program grants for PayPal’s nonprofit community partners that are working in local communities to strengthen Black business owners by providing them with microloans, technical assistance, information, mentoring and access to digital solutions to speed their recovery from the impact of the pandemic.

Initial organizations receiving grants through this fund include Association for Enterprise Opportunity, Baltimore Business Lending, Chicago Neighborhood Initiatives Micro Finance Group, Expanding Black Business Credit Initiative, Kiva, MORTAR, Nebraska Enterprise Fund, Opportunity Fund, Rising Tide Capital, Start Small Think Big, Walker’s Legacy Foundation and Women’s Opportunity Resource Center.

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$500 million commitment to create an economic opportunity fund to support and strengthen Black and underrepresented minority businesses and communities over the long term, and designed to help drive financial health. This initiative will include bolstering the company’s relationships with community banks and credit unions serving underrepresented minority communities, as well as investing directly into Black and minority-led startups and minority-focused investment funds. Startups and investment funds are invited to express interest to the PayPal Ventures team, here.

Connie Evans, president and CEO, Association for Enterprise Opportunity said, “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 also committing $15 million to strengthen its internal diversity and employee inclusion programs.

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