Square, Inc. to Invest $100 Million in Minority and Underserved Communities
24 9월 2020 - 8:45PM
Business Wire
Square, Inc. (NYSE: SQ) announced today that it intends to
invest $100 million in support of minority and underserved
communities, driven by the company’s purpose of economic
empowerment and its ongoing commitment to racial equity. The
investment constitutes three percent of Square’s cash and
marketable securities as of the end of the second quarter of 2020.
Square commits to financial support for these causes in the
future.
According to the U.S. Senate Committee on Small Business and
Entrepreneurship, minorities make up 32 percent of the population,
yet minority business ownership represents only 18 percent of the
population. The Urban Institute notes that there are fewer than two
dozen Black-owned banks in the U.S. today, which provide customers
access to financial capital and resources, and offer the
opportunity to invest in the success of their community. Square
believes it is critically important to ensure that access to
financial services is not just reserved for those with privilege.
With this investment, the company hopes to increase the speed and
scale in which these organizations can help minority and
underserved communities.
In 2019, Square began dedicating deposits to Community
Development Financial Institutions (CDFIs) and Minority Depository
Institutions (MDIs) in communities around the country. These new
investments are a continuation of the company's commitment to
increasing access to financial services. By providing more capital
to CDFIs and MDIs, the impacts can ripple across the communities
they serve as more families buy their first homes and small
businesses launch and evolve.
“Citizens Bank greatly appreciates its highly valuable and
beneficial partnership with Square, Inc.,” said Sergio Ora,
President and CEO of Citizens Bank, an organization in which Square
made a small deposit earlier this year. “As the oldest continuously
owned and operated African-American Bank in the United States and
as a CDFI, Citizens Bank is very focused on establishing
collaborative partnerships with organizations that are aligned with
our long-standing commitment to provide superior financial services
and financial education to the African-American community, as well
as other underserved minority groups.”
Square intends to allocate the $100 million investment as
follows:
- $25 million to deposits in CDFIs and MDIs around the United
States.
- $25 million investment in The Keepers Fund sponsored by the
National Bankers’ Association, a trade group representing
minority-owned financial institutions that are committed to
providing employment opportunities, entrepreneurial capital and
economic revitalization in neighborhoods which often have little or
no access to reasonably priced financial services. The Keeper’s
Fund intends to make investments in MDIs that primarily lend in low
and moderate income areas or to low and moderate income individuals
by providing the capital these institutions require to thrive.
- $25 million investment in The Black Economic Development Fund
managed by The Local Initiatives Support Coalition (LISC), one of
the country's largest and most impactful social enterprises
supporting projects and programs to revitalize communities, bring
greater economic opportunity to residents, and facilitate financing
of Black-owned businesses. The Black Economic Development Fund will
provide deposits, bridge financing and other financing to Black-led
financial institutions, anchor institutions, and businesses.
- An additional $25 million reserved for future investment into
social impact projects, to be announced at a later date.
“It is refreshing to see a company like Square make a proactive
investment to improve economic equality in the financial sector,”
said Kenneth Kelly, Chairman of the National Bankers Association.
“Square’s leadership to provide systemic solutions to change the
narrative and trajectory on the equality issues is role-modeling
the type of impact that many other organizations verbally aspire to
achieve.”
“With its impact investment and committed partnership, Square is
helping us fight the racial wealth gap and drive lasting gains for
American families and communities,” said Maurice A. Jones, LISC
president and CEO. “Investments in Black-owned banks, credit
unions, CDFIs, other businesses and HBCUs fuel economic justice and
opportunity in underserved communities and support a broadly shared
prosperity throughout the country. This is especially important
now, as people deal with the effects of COVID-19, a recession and a
racial reckoning—and plan for recovery, reconstruction and renewed
growth."
Square strives to help broaden access to the tools and services
consumers and business owners need to thrive via the company’s two
ecosystems, Cash App and Seller. The investments continue Square’s
work in breaking down barriers across financial services and
providing access to all.
About Square, Inc.
Square, Inc. (NYSE: SQ) builds tools to empower businesses and
individuals to participate in the economy. Sellers use Square to
reach buyers online and in-person, manage their business, and
access financing. And individuals use Cash App to spend, send,
store, and invest money. Square has offices in the United States,
Canada, Japan, Australia, Ireland, Spain, and the UK.
Safe Harbor Statement
This press release contains forward-looking statements within
the meaning of the Safe Harbor provisions of the Private Securities
Litigation Reform Act of 1995. All statements other than statements
of historical fact could be deemed forward-looking, including, but
not limited to, statements regarding Square’s (the Company)
intentions regarding financial commitments and future
investments.
Risks that contribute to the uncertain nature of the
forward-looking statements include those listed or described from
time to time in the Company’s filings with the Securities and
Exchange Commission (the SEC), including the Company’s most recent
Quarterly Report on Form 10-Q, which is on file with the SEC. All
forward-looking statements are based on information and estimates
available to the Company at the time of this press release. Except
as required by law, the Company assumes no obligation to update any
of the statements in this press release.
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