According to a press release, Costco will invest $25 million in a new economic development fund that will invest in Black-led financial institutions and community development efforts.
The Black Economic Development Fund was launched this summer by the Local Initiatives Support Corporation (LISC) to enable corporations invest in efforts that could bridge the racial wealth gap, which is projected cost U.S. $1.5 trillion.
The fund has in the mean identified $30 million potential pipeline investments and plans to provide direct financing through Black-owned banks to businesses, charter schools, affordable housing projects and athletic facilities.
Costco is the second investor to fund the investment after Netflix and the fund is expected to have its first closing with over $100 million in investments this fall.
While talking about the investment, the President and CEO of Costco, Craig Jelinek said: “We are thrilled to be a part of an investment strategy that will help some of the communities where we operate in the United States.
“With LISC, we are supporting a more inclusive economy, to break down race and class as barriers to opportunity and growth.”
Albertsons announced earlier that they have donated $5 million to social justice organizations while Hy-Vee availed $1 million and one million hours of volunteer to groups which support racial unity and equality. Also, Smart & Final will donate $100,000 to the NAACP Legal Defense and Education Fund while Kroger created a $5 million fund via the Kroger foundation to improve diversity, equality and inclusion.
