On Oct. 25, 2023, the Biden-Harris administration and the Economic Opportunity Coalition (EOC) announced a landmark commitment to bolster community lenders. According to a press release, the EOC, which consists of nearly 30 private sector companies and foundations, aims to secure $3 billion in deposits for community development financial institutions (CDFIs) and minority depository institutions (MDIs), community lenders with a proven record of reaching low-income, rural, and other underserved communities.
Vice President Kamala Harris issued a groundbreaking call to action, urging companies in key sectors like semiconductor manufacturing and clean energy to dedicate at least 15% of their procurement dollars to small and underserved businesses by 2025. Initial supporters of this initiative include Micron, Air Products, and Xcel Energy.
This multi-billion-dollar commitment is an expansion of the EOC's previous goal of $1 billion, marking a 200% increase aimed at providing critical support to low-income, rural, and other marginalized communities.
Vice President Harris emphasized the significance of this alliance between public and private sectors. "To bridge the financial disparities that hold so many of our communities back, we must continue to work together to combine the capacity of the private sector with the reach and the scale that only the government can provide. When we do, we create opportunity and prosperity for millions of Americans," she said.
Google has also stepped in, pledging to spend at least $1 billion annually with diverse-owned suppliers within the United States. This commitment, along with the others, aims to catalyze sustained economic benefits in underserved communities.
According to the official release, Secretary of the Treasury Janet L. Yellen stated, “Innovative partnerships between the public and private sectors are key to increasing economic opportunity for all Americans.” The Treasury Department has been instrumental in working closely with the EOC to ensure that these investments are as impactful as possible, particularly for underserved communities.