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Baltimore-headquartered T. Rowe Price announced Wednesday it will partner with CNote, a woman-led impact platform whose mission is to close the wealth gap, to deploy $50 million in deposits to under-resourced deposit institutions.

CNote is an impact investment financial technology platform that provides capital to lenders who empower small, diverse business in under-resourced communities. As of last year, funds have been directed to community banks and credit unions around the country for distribution to small businesses.

“We are committed to ensuring underrepresented and under-resourcedcommunities have access to capital,” Raymone Jackson, head of Diversity, Equity, and Inclusion and Corporate Responsibility for T. Rowe Price, said in a press announcement.

Jackson continued, “We believe this investment will go a long way in providing capital and coaching to small and emerging businesses; expanding access to healthcare, education, and other community-centric facilities; financing affordable housing development; and generally making communities more economically resilient.”

The $50 million investment is the first of its kind in the investment management industry. It’s the result of a social impact investing initiative spearheaded by T. Rowe Price’s Black Leadership Council, a group of senior African American associates who advise the Management Committee and support engagement with Black/African American associates.

CNote CEO Catherine Berman said in the press announcement, “We are excited to partner with leaders like T. Rowe Price who are providing access and opportunity for underserved and under-resourced communities.”

Berman continued, “Through CNote’s platform, T. Rowe Price is delivering much-needed capital into low-income communities and communities of color while earning returns and measurable impact.”  

According to the announcement, as of March 31, 2023, funds have been deposited into 44 depositories, and 70% of the funds were deployed in communities as loans. Of those loans, 65% went to minority borrowers, and 68% were disbursed in low-to moderate-income communities.

Of those 44 depositories, 28 are community development financial institutions, 17 are minority deposit institutions, and 20 are low-income designated credit unions.

Funds are all placed in deposits within Federal Deposit Insurance Corporation and National Credit Union Administration insured limits.