Twitter to invest $100M in fund that offers loans to the underserved

Twitter to invest $100M in fund that offers loans to the underserved

Twitter and the Opportunity Finance Network announced the creation of the Finance Justice Fund, which aims to bring $1B in capital from corporate and philanthropic donors to underserved individuals and communities.

Why should we care?
Twitter, the first corporate investor in the Fund, will invest $100M. It will offer long-term, below market rate loans to qualified borrowers through community development financial institutions. Twitter is also making a $1M grant and ongoing contributions to support the Fund and the disbursement of loans, and will partner with nonprofit Operation HOPE on financial literacy initiatives. Twitter’s move comes after JPMorgan Chase made a $30B commitment to advance racial equality, and Bank of America made a $1B commitment to address economic and racial disparities. "By allocating a portion of our cash to the new Finance Justice Fund, Twitter will provide access to capital through loans to invest in underserved communities. Interest income from Twitter's investment in the Finance Justice Fund will then be used to support Operation HOPE's financial coaching initiatives,” Twitter chief financial officer Ned Segal said.