LISC’s Black Economic Development Fund reaches $175 million with $50 million investment from PayPal, $12.5 million from HubSpot
PayPal is the largest investor in the fund, which is set to deploy capital to Black-led banks and businesses in early 2021
NEW YORK (Dec. 17, 2020)— The Local Initiatives Support Corporation (LISC) today announced a $175 million close of investments into its Black Economic Development Fund following two recent investments. PayPal Holdings, Inc. (NASDAQ: PYPL), invested $50 million into the fund becoming the fund’s largest single investment to date. PayPal’s investment is part of the company’s previously announced $530 million commitment to support Black businesses and communities. HubSpot (NYSE: HUBS), the Boston-based customer relationship management (CRM) platform, invested $12.5 million in the fund as part of the company’s $20 million commitment to social impact investing.
“We strongly believe that access to capital and financial services is critical to growing and sustaining vibrant communities. LISC, with its decades-long history of expanding inclusive economic opportunity, is an important partner in our long-term commitment to close the racial wealth gap.”Franz Paasche, SVP Corporate affairs, PayPal