/Bill Bynum Netflix’s $10 million investment will help HOPE close state’s wealth gap

Bill Bynum Netflix’s $10 million investment will help HOPE close state’s wealth gap

Bill Bynum, CEO at HOPE Credit Union (a member-owned financial institution that offers loans, banking, and other financial services), said that his organization was not surprised that a large number of people of color were positive for COVID-19 and that they had to close the gap. The economic effects of the pandemic on low-income Black workers were even more severe. Bynum stated that the service and retail sector is the most affected. Many people of color work in this sector. “Whether it’s economic or health conditions, people of colour, and low-income people, are more fragile.” Many rural residents lost their jobs and were unable to sustain themselves economically due to COVID-19. However, HOPE offered financial support and payment flexibility to some of them. The credit union has a $10 million Netflix deposit and plans to bring more wealth to Itta Bena. HOPE stated that the Netflix funds will provide financing for more than 2,000 entrepreneurs and homebuyers who are of color over the next two-year period. Netflix Tuesday announced its $100 million commitment in capital to Black communities. It also made a transformational deposit in HOPE Credit Union. Bynum explained that this means Hope will “reimport capital to these capital-starved communities.” HOPE, for example, is the only financial institution located in Itta Bena – a town with more than 1,800 residents and a median household income around $19,000. The community requires more money to support small businesses, housing, car ownership, and home ownership. Bynum stated that the town’s total potential deposit is just over $1 million. This is not enough money to support development needs. “Whether it is small businesses, homeowners, or families who need to purchase a car, or in an emergency, you usually go to a bank to get cash,” Bynum explained. “But when a community like Itta Bena is so poor, they don’t have the means to save or put deposits into a local bank,” Bynum said. Aaron Mitchell, director for talent acquisition at Netflix, was the one who spearheaded the initiative to support Black-owned and Black led banks, credit unions and financial institutions. Bynum had established relationships with top Netflix executives and was able to speak with Mitchell about HOPE. Mitchell stated that the initiative was a solid investment. The deaths of George Floyd, Breonna Taylor, and Ahmaud Abery in Georgia have increased Netflix’s desire to invest in Black communities. Mitchell and Shannon Alwyn (treasury) wrote in a blog that 19 percent of Black families do not have assets or any negative wealth. This is compared to 9 percent for white households. They stated that they believe that bringing capital to these communities could make a significant difference for their people and businesses, helping more families save for college or buy their first home, and allowing more small businesses to start or grow. HOPE will continue its efforts to close the racial wealth gaps in rural communities, communities and communities of color as well as low-income communities throughout the South with the $10 million. Bynum stated that HOPE believes that capital is necessary to address all your needs, regardless of whether you are trying to close educational gaps or housing gaps, ensure that communities have access to healthy food and improve their housing conditions. “We provide responsible, affordable financial services that are accessible to all and taken for granted by more wealthy, prosperous, and more white communities, but which are not available in the communities we serve.”