Starbucks is Investing $100M in Small Businesses and Black Communities
Starbucks is creating a new $100 million fund aimed at investing in community development projects and small businesses in areas populated by people of color, CNBC reported. The investment, titled Community Resilience Fund, is part of a broader initiative to increase Starbucks commitment to racial and social equality. The company endowed $1 million in neighborhood grants back in June when thousands of Americans were protesting to put an end to racism and police brutality.
The plan is to invest the funds over the next four years in 12 U.S. cities with populations that are Black, Indigenous or people of color, including Atlanta, Detroit, Los Angeles, Philadelphia, and Houston. Small businesses and neighborhood development projects are the target beneficiaries for this program, CNBC reported. The money will go to impact-focused institutions that provide financial services to low-income individuals. Ultimately, the goal of Starbucks' Community Resilience Fund is to bridge the gap between the public and private sectors.
Total Retail's Take: It's great to hear that Starbucks is committed to racial injustice and is investing $100 million to this initiative. Investors, employees and customers of the coffee chain will be pleased to see the company putting money to projects and small businesses in communities that need it most, including many cities in which Starbucks has a strong brick-and-mortar presence. This is especially beneficial considering that during the coronavirus pandemic, many small businesses were overlooked for federal funding from the Paycheck Protection Program. A much needed investment boost could help many small businesses withstand this crisis and survive to see better days ahead.
Ashley Chiaradio is the Senior Content Strategist at Total Retail. Ashley has been creating content for more than 7 years, and provides a unique insight in covering the retail industry having worked directly for retailers in the past. She’s passionate about profiling women leadership in the space.