The bank is committing $100 million to the charitable organization to extend affordable loans to small businesses owned by women.
“We recognize that women entrepreneurs help fuel economic growth in communities across the U.S., and that access to capital remains a key challenge,” said Andrew Plepler, global head of environmental, social and governance at Bank of America. “Partnering with the Tory Burch Foundation to advance women in small business is one way we invest in the future of local economies.”
The Tory Burch Foundation Capital Program, which was launched in 2014 in partnership with Bank of America, strives to increase the number and size of businesses owned and led by women.
Just $1 out of every $23 loaned in the U.S. goes to women-owned businesses.
“We know women pay back loans at higher rates than men, but because of cultural bias, they are denied critical capital to grow their businesses,” said designer Tory Burch, founder of the foundation. “Over the past five years, the capital program has allowed us to reach women business owners at scale, and we’re looking forward to doubling that investment.”
The program helps connect female entrepreneurs with affordable loans administered through local CDFIs, which provide financial services to underserved populations. The CDFIs in the capital program give loans at 2 percent interest to qualifying borrowers.
Bank of America has more than $1.5 billion in investments to 255 CDFI partners across the U.S., making it the largest player in the space.