PayPal Commits $530M To Support Black- And Minority-Owned Businesses

PayPal is officially pulling up for the movement. The payment gateway has just announced a $530 million commitment to support Black and minority-owned businesses and communities in the U.S. to help address economic inequality.

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The funds will be used to provide immediate grants for businesses directly impacted by civil unrest and the pandemic and support longterm community development investments as well as to bolster PayPal’s internal programs to further increase diversity, equity, and inclusion within its 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 in a press statement. “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.”

See the full breakdown of funds below, including up to $10K grants for Black-owned businesses.

PayPal Empowerment Grants for Black Businesses Program ($10M)

The $10 million dollar fund will award up to $10,000 to more than 1,000 Black-owned businesses to cover expenses related to stabilizing and reopening their businesses. The fund will be managed in partnership with Association for Enterprise Opportunity (AOE).

TO APPLY: Visit aeoworks.org/paypalgrant.
DEADLINE: August 31 at 5pm EST. **UPDATE** The deadline is now Saturday, June 13 at 3pm EST.

PayPal Partner Grants ($5M)

The $5 million fund will award program grants and employee matching gifts for PayPal’s nonprofit community partners working 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. The first round of organizations receiving grants through the fund includes AOE, 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.

As part of this, the company will expand the PayPal Gives Employee Matching Gifts program. PayPal will match $2 for every $1 employees donate and $10 for every volunteer hour dedicated to racial and economic justice efforts in local communities, up to $500,000.

PayPal Investment for Underrepresented Minority-led Startups and Investment Fund ($500M)

$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, access and generational wealth creation. 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.

PayPal Internal Diversity & Inclusion ($15M)

This fund will go toward the company’s internal diversity and inclusion programs, including to support recruiting, hiring, and career advancement of Black and minority employees.

“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,” said Schulman. “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.”