Invest in Black entrepreneurship

Black-owned businesses have long faced obstacles in obtaining loans. They are the most likely to apply for bank financing, but get turned down at twice the rate as white business owners. This financing gap is especially pronounced in the start-up world, where studies show that Black entrepreneurs receive only 3% of venture capital funding.

What Citi will do:

  • Allocate an additional $50 million to the Citi Impact Fund exclusively to support businesses owned by Black entrepreneurs. Citi kicked off the fund in January with $150 million in capital for businesses that are developing solutions to social and environmental challenges.
  • Increase Citi business procurement spend with certified diverse suppliers from $700 million to $1 billion annually, including $250 million with Black-owned firms.
  • Launch a new program called Citi Start CreditSM, which will work with Community Development Financial Institutions (CDFIs) to help underserved entrepreneurs increase their credit scores and access more affordable credit.

What Citi has done so far:

  • To date, 9 of the first 24 Citi Impact Fund investments were directed to Black founders - most of which are seed stage investments, accounting for 40% of the Fund’s portfolio and 20% of the Fund’s total equity invested.
  • Spent $875 million with diverse suppliers in 2020, including $354 million with Black-owned businesses alone.
  • On track to achieve target for annual supplier spend with Black-owned businesses in 2021 and goal of increasing overall spend with certified diverse suppliers to $1 billion annually by 2023. Supplier spend data released annually as part of Citi ESG reporting.

Learn more about the Citi Impact Fund.