Joined by Vice President Kamala D. Harris, U.S. Secretary of Commerce Gina M. Raimondo and U.S. Small Business Administrator Isabella C. Guzman, Greater Washington Partnership Announces $4.7 Billion to Advance Growth inclusive
Joined by Vice President Kamala D. Harris, U.S. Secretary of Commerce Gina M. Raimondo and U.S. Small Business Administrator Isabella C. Guzman, Greater Washington Partnership Announces .7 Billion to Advance Growth inclusive

WASHINGTON–(BUSINESS WIRE)–On Wednesday, the Greater Washington Partnership will host a landmark event at Howard University with Vice President Kamala D. Harris, U.S. Secretary of Commerce Gina Raimondo and U.S. Small Business Administrator Isabella Guzman. Hosted by Howard University President Dr. Wayne Frederick, the event will serve as a formal announcement and celebration of $4.7 billion over five years in collective efforts to support underrepresented communities and businesses Minority Businesses (MBE) in the capital region. Vice President Harris, who led White House assistance for small businesses in underserved communities, will deliver remarks and share new ways the Biden-Harris administration is helping small businesses access capital.

The organizations involved in these efforts are all partners in the Greater Washington Partnership, a civic alliance of business and community leaders committed to making the Capital Region, from Baltimore to Richmond, a leading global center for commerce. , innovation and shared prosperity.

Specifically, the $4.7 billion in transformation efforts are being directed in three ways:

1. Supplier diversity: $2.6 billion for procurement spending with various suppliers and Minority Business Enterprises (MBEs), with priority to spend with Black and Latinx-owned businesses. This effort addresses both critical business needs and systemic inequalities that have created barriers to growth for these groups;

2. Racial Equity: $1.5 billion in wealth-building opportunities in underrepresented communities, such as direct corporate investments in affordable housing and community organizations that lead local equity initiatives; and

3. Access to capital: $619 million for financial investments in community development financial institutions (CDFIs) and local minority depository institutions (MDIs). CDFIs and MDIs provide access to capital to underrepresented populations in the form of loans and strategic financing to create economic opportunities.

“The scale of this investment in this region is unprecedented and demonstrates the deep commitment of our business community to creating a fairer and more inclusive economy,” said Peter L. Scher, Vice Chairman of JPMorgan Chase & Co. and Chairman of the Board of the Greater Washington Partnership. “This is a time when leaders from all sectors need to step up and act. We are thrilled that so many organizations are making the kind of investments that will lead to tangible and lasting change. It is a testament to the power of collective action.

Overview of a $4.7 billion effort

The $4.7 billion includes efforts from the following organizations: Akin Gump Strauss Hauer & Feld LLP, Amazon, AstraZeneca, Bank of America, Boston Consulting Group, Capital One, Clark Construction, Comcast, Deloitte, Dominion Energy, Exelon, EY , Gensler, Georgetown University, Howard University, Inova Health Systems, JPMorgan Chase & Co., Kaiser Permanente, McKinsey & Company, Northrop Grumman Corporation, SAIC, Thompson Hospitality, Truist, Washington Commanders and Wells Fargo.

Supplier diversity

The partnership is committed to supporting the growth and scale of diverse businesses – especially Black and Latinx-owned businesses – by bringing together the region’s largest employers to prioritize their procurement spend from diverse suppliers. Over five years, the $2.6 billion in supplier diversity efforts and commitments are expected to generate approximately $3.5 billion in revenue for small and medium-sized businesses, create and sustain approximately 4,000 jobs per year and generate a cumulative GDP impact of approximately $2 billion.

The partnership will amplify existing supplier diversity efforts by sharing and exchanging data and best practices through its Supplier Diversity Leadership Roundtables. By focusing on supplier diversity, the Partnership hopes to see more success stories like Thompson Hospitality, a 30-year-old minority-owned foodservice company based in Reston, Va., and a member of the Partnership’s Inclusive Growth Strategy Council. . Through its 25-year partnership with Compass Group, Thompson Hospitality has grown from $34 million to $800 million in revenue and is now the largest minority-owned food and facility management company in the country. . Thompson Hospitality proudly serves many historically black colleges and universities and owns and operates unique restaurant brands across the United States.

Racial Equity

Partner organizations invest to support wealth creation for underrepresented communities in the region. For example, since January 2021, the Amazon Housing Equity Fund has committed more than $795 million in low-interest loans and grants in its HQ2 region to create and preserve more than 4,400 affordable housing units. In Arlington County, Virginia, the Amazon Housing Equity Fund increased long-term committed multi-family affordable housing stock by 22%, based on data provided by Arlington County.

Additionally, in October 2021, Exelon launched a $36 million racial equity capital fund to support minority-owned businesses in the communities it serves – nearly half of which is dedicated to this region. The fund, managed by RockCreek, will invest much-needed debt and equity capital to help minority-owned businesses grow.

Access to capital

CDFIs and MDIs are essential to support historically underinvested communities. They provide much-needed capital to low- and moderate-income communities for community facilities, affordable housing, personal banking, and they provide loans to businesses that face systemic barriers to accessing capital. For example, Capital Impact Partners, a CDFI that has been operating since 1982, has invested $277.5 million in loans and strategic financing for minority and women-owned small businesses in the Baltimore area of ​​Richmond alone.

The Partnership invites businesses and organizations from all sectors to join this historic effort and believes it will be a catalyst to drive transformational change in the Capital Region.

Achieving the $4.7 billion effort will require both laser focus and sustained effort. As announced in April 2021, the Partnership is developing an inclusive growth plan in collaboration with Deloitte. The Blueprint will provide a 10-year roadmap for closing equity gaps in the region and advancing shared prosperity.

“The impact of this incredible commitment is only possible through the continued partnership, support and expertise of our employers and community partners,” said Francesca Ioffreda, Vice President of Partnership for Inclusive Growth and Talent Initiatives. “Building on what is already working and supporting Black and Latinx-owned businesses in this region through supplier diversity efforts and strategic capital investments, we have a tremendous opportunity to build a more equitable, resilient and prosperous economy for all.”

With the combined strengths and assets of the leaders behind these commitments and the community partners impacted by them, the region is well positioned for success. The Partnership will leverage its social, intellectual and financial resources to foster shared prosperity and economic opportunity in the region. This collective action represents a reaffirmed commitment to ensure that economic growth benefits all residents, regardless of their zip code.

About the Greater Washington Partnership

The Greater Washington Partnership is a first-of-its-kind civic alliance of CEOs in the Capital Region, drawing on leading public, private and nonprofit organizations committed to making the Baltimore-Richmond area one of the best places in the world to live, work and start a business. Working collaboratively with leaders in our communities, the Partnership connects and harnesses the region’s extraordinary strengths to catalyze inclusive and actionable solutions that strengthen the Capital Region as a leading global center for trade, innovation and shared prosperity.

LEAVE A REPLY

Please enter your comment!
Please enter your name here