Ally Financial has announced it will invest $30 million in Black founders, businesses, and communities as a part of Black Business Month.
According to an Ally release, $5 million will be invested in the Fearless Fund, which works to increase Black representation in venture capital and support women of color. The remaining $25 million will be invested in SoLa Impact‘s Black Impact Fund to boost economic development and affordable housing within Black and Latino communities.
Diane Morais, Ally’s president of consumer and commercial, said the funding would help generations of Black entrepreneurs, investors, and leaders.
“Black-owned businesses are the backbone of many communities throughout the country,” Morais said in a release. “To succeed, they need capital and, when it comes to accessing that capital, we know representation matters. Our investments in Fearless Fund and the Black Impact Fund will help develop the next generation of successful Black entrepreneurs, investors, and community leaders who will be writing the checks and creating the opportunities. These are important steps to building a healthier and more inclusive economy.”
Ally’s investment coincides with Black Business Month, devoted to supporting and celebrating Black businesses and their owners throughout August. Ally recognizes and honors Black Business Month by providing the capital and resources Black businesses need to thrive.
The Fearless Fund, established in 2019, invests in businesses led by women of color seeking pre-seed, seed level, or Series A financing. Fearless is designed to bridge the gap in venture capital funding for women of color founders. SoLa Impact’s Black Impact Fund is a family of real estate-related funds focused on investing in Black and Latino communities in major urban markets. Ally is working with both beyond Black Business Month to ensure they reach their goals.
A survey of more than 400 Black-owned businesses showed nearly 80% of Black-owned businesses surveyed say their businesses were better off now than they were at this time last year, and 60% said their businesses are as good or better than they were before the pandemic.
The survey also showed strong support for Black-owned businesses as 70% of consumers said they find it helpful when a business identifies as Black-owned, and around 60% said they would be willing to pay more for items at a Black-owned business.