Google, bank coalition pledge billions to underserved businesses

ALPHABET’S Google and a coalition of US banks and foundations are pledging to steer at least US$4 billion towards small businesses and minority lending institutions, Deputy Treasury Secretary Wally Adeyemo said on Tuesday (Oct 24).

The Biden Administration announced a series of measures to boost small and minority-owned businesses ahead of its annual Freedman’s Bank Forum, which focuses on economic opportunity for communities of colour.

A group of large banks and foundations called the Economic Opportunity Coalition will commit to securing US$3 billion in deposits for lenders that target underserved groups, including rural Americans and minorities, Adeyemo told reporters ahead of Wednesday’s event. The pledge is an increase over the US$1 billion commitment the EOC made last year to community development financial institutions and minority depository institutions.

Search giant Google also committed to spending at least US$1 billion annually with diverse-owned suppliers in the US, Adeyemo said. Micron Technology, Xcel Energy and Air Products committed to steering 15 per cent of their contract spending on outside goods and services towards small and underserved businesses by 2025.

The administration is calling on companies in certain clean energy, semiconductor and other manufacturing sectors to make a similar commitment.

Finally, the IRS is committing to spending 19 per cent of its procurement US dollars with small and disadvantaged businesses. BLOOMBERG