Netflix announced that they are putting 2% of their cash holdings into financial institutions and organizations to “directly support Black communities in the U.S.” The initial commitment is expected to be as high as $100 million.

$25 million will be moved to a new fund called the Black Economic Development Initiative, which invests in Black financial institutions that serve low and moderate-income communities and Black community development corporations. $10 million will then go to Hope Credit Union to fuel economic opportunities in underserved communities in the Deep South. Hope Credit Union reacted to the news, stating:

“Over the next two years, HOPE estimates the Netflix deposit will support financing to more than 2,500 entrepreneurs, homebuyers and consumers of color.” 

Netflix CFO Spencer Neumann stated that the company has roughly $5 billion in our cash balance sheet as of last quarter. If we can move 2% into these Black owned or Black led financial institutions… where we can still manage our liquidity… it’s a way to do this on an ongoing basis and hopefully learn from this and it continues to grow.”