Bank of America, Wells Fargo announce minority business grant, investment

Bank of America has partnered with Atlanta’s Sweet Auburn Works (SAW) Retail Accelerator Fund to enable $500,000 in investment for local businesspersons of color and leading financial services company Wells Fargo has announced it has fulfilled its last year’s $50 million pledge by finalizing investments in two more African American Minority Depository Institutions (MDIs).

The SAW fund will provide grants of up to $25000 per business to local businesspersons of color. Bank of America’s grant for the fund is part of its $1.25 billion, five-year commitment to promote racial equality and economic opportunity, including support to minority businesses.

A nonprofit, SAW is dedicated to the revitalization of the Sweet Auburn Historic District. Before the Civil Rights Movement, the district was the spiritual, cultural and commercial center for Black communities in Atlanta, housing the city’s first Black-owned daily newspaper and first Black-owned office. The district is most commonly known as the birthplace of Dr. Martin Luther King Jr.

Wendy Stewart, the Bank of America Atlanta president, said in a press release, “With over 100 years of history in Atlanta, our community-centered approach remains the same. Our partnership and support of revitalization in Sweet Auburn began in the 1990s with single-family homes, and we continue to address critical issues to ensure that opportunities for our community are within reach.”

Back in January, Bank of America announced investments of $150 million in 40 private funds focused on minority businesspersons. In February, it committed $10 million to the development of the Center for Black Entrepreneurship (CBE).

The two MDIs Wells Fargo finalized investments in are Industrial Bank of Washington, D.C. and the Harbor Bank of Maryland. Last year, Wells Fargo committed $50 million to Black-owned banks in communities across the United States.

Gigi Dixon, head of External Engagement for Diverse Segments, Representation and Inclusion at Wells Fargo, said in a press release, “We are pleased to announce our investments in the Harbor Bank of Maryland and Industrial Bank, bringing the total number of MDIs in which we’ve made an investment to 13. We are a proud partner to all these banks as each serves as a cornerstone to the communities they serve.”

She added, “The way we’ve structured this program goes beyond a simple capital investment; we’ve worked to understand these MDIs, their needs, their strategic aspirations, and their challenges. We want to help them grow so they can continue to be important drivers of economic vitality for years to come.”

The 13 Black-owned banks Wells Fargo has made investments in are Liberty Bank (New Orleans, Louisiana), Carver Federal Savings Bank (New York, New York), Industrial Bank (Washington, D.C.), Carver State Bank (Savannah, Georgia), Citizens Savings Bank & Trust (Nashville, Tennessee), City First Bank (Los Angeles, California), Commonwealth National Bank (Mobile, Alabama), The Harbor Bank of Maryland (Baltimore, Maryland), M&F Bank (Durham, North Carolina), Citizens Trust Bank (Atlanta, Georgia), Optus Bank (Columbia, South Carolina), Unity National Bank (Houston, Texas) and First Independence Bank (Detroit, Michigan).