PayPal Holdings Inc. Chief Executive Dan Schulman argues that corporations have a key role to play in reaching the “tipping point” that can bring about social change.
The payment technology company announced earlier in June that it was committing $530 million toward helping minority-owned businesses. PayPal’s
commitment includes grants to and investments in Black-owned and minority-owned businesses.
Schulman said that the grant money is crucial because Black businesses routinely face higher hurdles to traditional loan opportunities, according to a recent interview with CNET. “Even during good times, the amount of financing they can raise, whether it be equity financing or just loans, is much lower than the national average,” he said. “But in this time, it’s practically impossible for them to get a loan.”
Schulman said that PayPal has already disbursed $10 million in grants, not loans, as part of the program.
While the company doesn’t have an end date for when it plans to have disbursed its entire $530 million commitment, Schulman said that PayPal wants to “start moving on it ASAP” while at the same time making sure there are funds remaining over a longer span.
“Some of it [is] more short term-oriented, but we also put in place a very…