NEW YORK, Aug. 28, 2020 /PRNewswire/ -- Costco
Wholesale Corporation (Nasdaq: COST) is committing $25 million to an innovative new impact
investment fund that will fuel Black-led financial institutions and
community development efforts.
The Local Initiatives Support Corporation (LISC) rolled out the
Black Economic Development Fund this summer, encouraging
corporations to make investments specifically designed to improve
economic opportunity for Black Americans. By doing so, the fund
seeks to help close the racial wealth gap, which could cost the
U.S. economy as much as $1.5 trillion
by 2028 if not addressed.
"We are thrilled to be a part of an investment strategy that
will help some of the communities where we operate in the U.S.,"
said Craig Jelinek, President and
CEO of Costco. "With LISC, we are supporting a more inclusive
economy, to break down race and class as barriers to opportunity
and growth."
Costco is the second investor in the fund, following Netflix,
which seeded the fund just last month. LISC expects to further
expand the investor base and hold the fund's first closing this
fall, with over $100 million in
commitments from public and private corporations.
The fund has preliminarily identified $30
million in potential pipeline of investments in urban and
rural communities. The fund will focus on making deposits in
Black-owned banks and offering financing to minority businesses,
charter schools, affordable housing projects, and athletic
facilities, to support economic development in communities of
color. The fund expects to begin initial deployment of capital in
the fourth quarter.
"This commitment from Costco illustrates how corporations can
leverage their capital to both meet their own objectives and drive
deep and lasting gains for American families," said Maurice A. Jones, LISC president and CEO.
"With this fund, we are talking about much more than bank
deposits and loans," he continued. "This is about investing in
vibrant small businesses and growing local incomes. It's about
directing capital toward a traditionally underserved population. At
its core, this fund is focused on building a stronger future for
Black communities and our country."
For more information on the Black Economic Development Fund,
contact strategicinvestments@lisc.org.
About LISC
With residents and partners, LISC forges
resilient and inclusive communities of opportunity across America –
great places to live, work, visit, do business and raise families.
Since 1979, LISC has invested $22
billion to build or rehab more than 419,000 affordable homes
and apartments and develop 70.3 million square feet of retail,
community and educational space.
About Costco
Costco currently operates 795 warehouses,
including 552 in the United States
and Puerto Rico, 101 in
Canada, 39 in Mexico, 29 in the United Kingdom, 27 in Japan, 16 in Korea, 13 in Taiwan, 12 in Australia, three in Spain, and one each in Iceland, France, and China. Costco also operates
e-commerce sites in the U.S., Canada, the United
Kingdom, Mexico, Korea,
Taiwan, Japan, and Australia.
Media contact:
Catherine Carlstedt
ccarlstedt@lisc.org
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SOURCE Local Initiatives Support Corporation (LISC)