BALTIMORE—Twenty low-income credit unions are among the 44 institutions into which investment management firm T. Rowe Price said it has placed a total of $50 million aimed at providing capital to lenders that “empower small and diverse business owners and support under-resourced communities.”
The $50 million investment, which is the company said is the first of its kind in the investment management industry, is the result of a social impact investing initiative spearheaded by T. Rowe Price’s Black Leadership Council, a group of senior African American associates who advise the Management Committee and support engagement with Black/African American associates.
The names of the institutions that received the funds were not released by T. Rowe Price.
‘Long Way Toward Providing Capital’
“We are committed to ensuring underrepresented and under-resourced communities have access to capital,” Raymone Jackson, head of Diversity, Equity, and Inclusion and Corporate Responsibility for T. Rowe Price, said in a statement. “We believe this investment will go a long way in providing capital and coaching to small and emerging businesses; expanding access to healthcare, education, and other community-centric facilities; financing affordable housing development; and generally making communities more economically resilient.”
According to the firm, as of March 31:
- Funds have been deposited in 44 depositories.
- Seventy percent of these assets were deployed in communities as loans.
- Minority borrowers have received 65% of loans.
- 68% of loans were disbursed in low- to moderate-income communities.
- Of those 44 depositories, 28 are community development financial institutions (CDFIs), 17 are minority deposit institutions (MDIs), and 20 are low-income designated credit unions (LIDs).
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