Bank of America has invested in three California Minority Deposit Institutions (MDIs) – Los Angeles-based Latinx venture capital fund Vamos Ventures; San Francisco-based venture capital fund Serena Ventures started by Serena Williams; and Los Angeles-based minority-owned financial institution Broadway Federal with the bank acquiring 4.9 percent of common equity.
These investments underscore the bank’s ongoing efforts to address the persistent gap in access to growth capital for minority-led businesses, and are another component of Bank of America’s $1 billion commitment to racial equality and economic opportunity. This commitment, announced last summer, is focused on addressing and advancing social issues in minority populations, such as health, jobs, education, housing and capital inequality, and will facilitate benefits across multiple states and communities.
“We are excited to be partnering with Bank of America in its efforts to address the persistent gaps in opportunities that have existed within low-to-moderate income communities with regards to access to capital, affordable housing, and financial services. Bank of America’s equity investment affirms Broadway’s strong financial condition and capabilities to provide vital financial services to underserved urban communities and recognizes the critical role of Minority Depository Institutions,” said Wayne-Kent Bradshaw, CEO of Broadway Financial Corporation.
“Furthermore, it demonstrates Bank of America’s confidence in Broadway’s ability to effectively originate loans that support our Bank’s mission of serving low-to-moderate income communities, many of which have been disproportionately impacted by the COVID-19 pandemic,” Bradshaw said.
“Bank of America’s leadership for racial equality and economic opportunity is a great corporate example. As a Los Angeles-based Latinx venture capital fund for diverse and Latinx entrepreneurs, Bank of America’s partnership with VamosVentures will be transformational for us, and the entrepreneurs and communities we invest in,” said Marcos C. Gonzalez, Managing Partner, VamosVentures.