It’s a part of their economic justice initiative!
The NAACP has announced a new $200 million fund aimed at supporting Black businesses, Black Enterprise reports. The NAACP Capital Fund is a targeted investment effort focused on closing the racial wealth gap and addressing funding inequities that Black-owned companies face. According to a 2024 U.S. Census Bureau report, while 10% of all businesses in the nation are Black-owned, those businesses receive less than 1% of venture capital funding. The new NAACP initiative hopes to change that, bridging the gap in financial funding as an extension of the organization’s commitment to economic justice.
“As an ever-evolving legacy organization, the NAACP knows that innovation is borne out of inclusivity. Impact investing has the power to drive historic financial returns and uplift overlooked communities. Right now, deeply entrenched systemic barriers are curtailing the innovative progress necessary to breed healthy competition in a global economy. We’re seeking to change that,” said Derrick Johnson, NAACP President and CEO.
The new initiative will offer funding to businesses led by Black founders and entrepreneurs. In addition to financial investment, the Capital Fund will also offer business development services, including mentorship and networking opportunities, to help them navigate the current market. The goal is to support the larger U.S. economy by providing an economic boost to the most marginalized entrepreneurs. Johnson says it is, essentially, a win-win situation.
“Investment is the backbone of impact, and impact investing will shape socioeconomics for generations to come. It’s time to invest in fund managers who share a forward-looking vision that invests in innovation and technology, ensuring the economy works for everybody, not just a select few,” said Johnson.
To learn more about the NAACP Capital Fund and the organization’s commitment to economic justice, click HERE.
Cover photo: NAACP Launches $200M Fund to Support Black Businesses/NAACP President & CEO, Derrick Johnson/Photo credit: David Becker/AP Photo/The Black Wall Street Times