Citi and the Citi Foundation said they are committing more than $1 billion to help close the racial wealth gap and increase economic mobility in the United States.
The goals of Citi’s Action for Racial Equity are to provide greater access to banking and credit in communities of color, to increase investment in Black-owned businesses, to expand homeownership among Black Americans, and to advance anti-racist practices in the financial services industry, according to a Citi release.
Citi pledged the following commitments over the next three years:
- $550 million to support homeownership for people of color and affordable housing by minority developers
- $350 million in procurement opportunities for Black-owned business suppliers
- $50 million in additional impact investing capital for Black entrepreneurs
- $100 million to support Minority Depository Institutions’ growth and revenue generation
- $100 million in Citi Foundation grants to support community change agents addressing racial equity.
Certain Action for Racial Equity commitments, including portions of Citi’s investments in minority developers and in Minority Depository Institutions, will require approval from the Office of the Comptroller of the Currency.
In addition to Citi’s business commitments, the Citi Foundation is making a new $5 million grant to Living Cities to provide U.S. mayors with access to technical expertise, training, and seed capital for pilot initiatives that address racial wealth and income gaps. The Citi Foundation also is expanding employability and entrepreneurship efforts serving Black youth as part of a new three-year $100 million investment in its successful Pathways to Progress initiative.
“Citi is going beyond talking about discrimination by implementing concrete strategies to address longstanding inequities in communities of color,” said Kristen Clarke, president & Executive Director of the Lawyers’ Committee for Civil Rights Under Law. “Citi is charting a course that we hope will be replicated throughout the sector.”
According to the recently published Citi GPS report “Closing the Racial Inequality Gaps,” if the U.S. had closed key racial gaps for Black Americans in wages, housing, education and investment 20 years ago, $16 trillion could have been added to the U.S. economy. If these gaps are closed today, $5 trillion could be added to U.S. GDP over the next five years.
For more information on Action for Racial Equity, visit citigroup.com/racialequity.