- US Senator Warner, Treasury Deputy Secretary Adeyemo,
and corporate leaders join the EOC 2nd anniversary event
at NY Federal Reserve Bank
- BNY, Google, KKR, and Visa join the EOC's initiative to
place deposits in CDFIs and MDIs
- Goldman Sachs provides $140
million for new warehouse credit facility and American
Express provides $35 million in
equity investments for CDFIs
- BNY provides grant support to hire staff and build capacity
to recruit more depositors
NEW
YORK, July 23, 2024 /PRNewswire/ -- The
Rockefeller Foundation announced today that the Economic
Opportunity Coalition (EOC) added four new companies – BNY,
Google, KKR, and Visa – to its initiative that places deposits in
U.S. Community Development Financial Institutions (CDFIs) and
Minority Depository Institutions (MDIs). In addition, the EOC
secured $140 million from Goldman
Sachs Group, Inc. to help create a new warehouse credit facility
and $35 million from the American
Express Company in equity investments. The EOC also announced plans
to hire staff and build capacity to recruit new depositors, which
is being made possible with grant support from BNY. The
announcements occurred during the EOC's two-year anniversary event
at the Federal Reserve Bank of New
York, which featured Senator Mark R.
Warner (D-VA), Deputy Secretary of the U.S. Department of
Treasury Wally Adeyemo, representatives from the Office of Senator
Mike Crapo (R-ID), and dozens of
corporate and banking leaders.
In order to catalyze and align public and private investments to
address economic disparities and accelerate economic opportunities
in underserved communities across the
United States, The Rockefeller Foundation announced it
would incubate the EOC in July 2023,
one year after 24 corporations and foundations launched the
effort. As a fiscally sponsored project of RF Catalytic
Capital, Inc. (RFCC), The Rockefeller Foundation's public charity,
it aims to spin the EOC out as an independent entity.
"CDFIs are necessary for those outside the financial mainstream
to gain self-sufficiency. This announcement is another step
forward in the goal of CDFIs supporting new and innovative
approaches to spurring economic growth and access to capital in
underserved communities. I applaud the buy-in from the
financial sector as coalition members continue to support
public-private partnerships that empower small businesses,"
said Senator Crapo, who co-chairs the Community
Development Finance Caucus with Senator Warner and has
continued to endorse the work of the EOC since its inception.
"In only two years, the Economic Opportunity Coalition has made
historic strides to sync our tremendous progress on CDFIs with
the tremendous resources of the banking and corporate
world," said Senator Warner. "As the EOC continues
to grow and unlock billions more in investments, it's clear that
we're bound for even more progress on getting capital to
underserved communities across America. I look forward to
continuing to work alongside the EOC and maintaining our strong
legislative momentum in the Senate on this deeply important
priority."
"Expanding access to capital is key to creating economic
opportunity for all communities," said Deputy Secretary
Adeyemo. "Community lenders have received historic levels
of public and private support during the Biden-Harris
Administration, and Economic Opportunity Coalition investments are
helping small businesses grow and hire nationwide. The Treasury
Department looks forward to continuing to work with leading U.S.
companies to put additional commitments to work in communities
across the country."
Securing New Deposits for CDFIs & MDIs
Through its
deposit initiative, which facilitates the placement of deposits
into CDFIs and MDIs for which FDIC insurance is available, the
EOC is leveraging $8.5 billion
dollars of equity investments provided to these institutions
two years ago by the U.S. Treasury Department under the Emergency
Capital Investment Program (ECIP), which was bipartisan legislation
supported by Senators Crapo and Warner. As mission-driven banks
certified by the U.S. Treasury Department and required to make at
least 60% of their loans in underserved communities, deposits allow
CDFIs and MDIs to expand their lending power for underserved
communities and small businesses working to recover from the
economic shocks caused by the Covid-19 pandemic.
Last year, EOC members committed to raise $1 billion in deposits for CDFIs and MDIs.
To date, $850 million of this has
been deployed to unlock capital in low-income and underserved
communities. Today, the EOC announced that BNY, Google, KKR,
and Visa are joining the effort to raise an additional
$2 billion by the end of 2024.
"Google is committed to helping small businesses gain access to
the capital, resources, and technology they need to thrive,"
said Ruth Porat, Alphabet and
Google's President & Chief Investment Officer; Chief Financial
Officer. "We are proud to support the Economic Opportunity
Coalition with its focus on helping businesses and communities
across the U.S. realize their full economic potential."
"Nearly 50 years of investing in businesses has convinced us
that talent and potential are widely spread, but opportunity is
not. Making capital available in more American communities to
build affordable housing, start and grow businesses, and expand
jobs fortifies our economy and society, which is why we are proud
to support this initiative," said Joe Bae and
Scott Nuttall, Co-CEOs of
KKR.
"Visa's purpose is to uplift everyone, everywhere and we will
continue this important work as a new member of the Economic
Opportunity Coalition," said Kelly Mahon Tullier, vice chair, chief people
and corporate affairs officer at Visa. "Over the past two
years, we have deposited $100 million
at minority depository institutions, enabling lending opportunities
and stimulating growth in underserved communities across the
country. By joining together with the coalition partners, we can
deepen the positive economic impact these efforts make in places
that need them now more than ever."
New Warehouse Credit Facility and Equity
Investments
During the roundtable, the EOC also announced
$140 million from Goldman Sachs to
create a warehouse credit facility to support small business loans
in Nevada, New Jersey, New
York, and Washington that
will leverage government funds from State Small Business Credit
Initiative (SSBCI).
"Through Goldman Sachs' 10,000 Small Businesses program –
launched in 2010 – we've provided tens of thousands of small
business owners across the US with access to business education,
capital, and support services. We are excited to be building upon
that commitment with the latest credit facility to deploy
high-demand capital and hope that the facility can serve as a
blueprint for future loan programs," said Asahi Pompey, Global Head of Corporate
Engagement and President of the Goldman Sachs Foundation &
Goldman Sachs Gives.
American Express also announced that it is joining the
coalition, making a financial contribution to the EOC with
$35 million in equity
investments.
"American Express is proud to join the Economic Opportunity
Coalition to help more people and businesses build financial
confidence and thrive. In addition to providing funding to support
the work of the EOC, we are also making $35
million equity investments in CDFIs and MDIs, including to
the Accion Opportunity Fund Community Development, the Enterprise
Community Loan Fund, and Mission Driven Financial Institutions
Fund," said Jennifer
Skyler, Chief Corporate Affairs Officer at American
Express.
With grant support from BNY, the EOC plans to hire staff
and build capacity that will allow the coalition to recruit more
depositors and measure the impact of the historic investments being
made in CDFIs and MDIs. With data being collected by the ECIP
recipients, the EOC intends to focus on best practices for reaching
the most marginalized communities and direct capital to the most
impactful CDFIs and MDIs.
BNY is proud to have been a strong supporter of
the EOC, including in their goal of attracting new depositors
toward CDFIs and MDIs," said Jayee Koffey, Global Head of
Enterprise Execution and Chief Corporate Affairs Officer at
BNY. "BNY has a 240-year history of helping build resiliency
across industries and communities, and we share the EOC's goal of
fostering an inclusive economy."
EOC's Growing Network
As the EOC turns two years old,
the list of corporations and foundations advancing its initiatives
continues to grow. In the lead up to the two-year anniversary, the
EOC also announced that John W. Rogers
Jr., Chairman and co-CEO of Ariel Investments, LLC, joined
as Chair of its Management Committee.
"Today, I am pleased by the continued support for the EOC's
deposits initiatives provided by our members. The $850 million of deposits deployed to date (out of
the over $1 billion in commitments
from last year) are another important milestone for the EOC, and we
could not have achieved it without the committed support of our
members. I thank all our partners for continuing to work with us,
and look forward to building on the achievements announced today,
as we strive to build and grow our deposits commitments as a means
of wealth creation opportunities for underserved individuals,
businesses, and communities," said Christopher Weaver, Executive Director of the
Economic Opportunity Coalition.
For more information about the Economic Opportunity Coalition
visit:
https://www.rockefellerfoundation.org/initiative/economic-opportunity-coalition.
The Economic Opportunity Coalition is a fiscally sponsored project
of RF Catalytic Capital, Inc.
About The Rockefeller Foundation
The Rockefeller
Foundation is a pioneering philanthropy built on collaborative
partnerships at the frontiers of science, technology, and
innovation that enable individuals, families, and communities to
flourish. We make big bets to promote the well-being of humanity.
Today, we are focused on advancing human opportunity and reversing
the climate crisis by transforming systems in food, health, energy,
and finance. For more information, sign up for our newsletter at
www.rockefellerfoundation.org/subscribe and follow us on X
@RockefellerFdn and LI @the-rockefeller-foundation.
View original
content:https://www.prnewswire.com/news-releases/rockefeller-foundations-economic-opportunity-coalition-adds-new-fortune-500-companies-to-its-initiatives-302204679.html
SOURCE The Rockefeller Foundation