OneMain Financial, the leader in offering nonprime customers responsible access to credit, announced that it has committed $50 million dollars to support minority depository institutions (MDIs) and military veterans.
The company’s $50 million commitment is managed in equal parts through two J.P. Morgan Asset Management programs. The first $25 million is deposited in the Empower money market share class to benefit two MDIs selected by OneMain: Sunstate Bank, based in Florida, and First Independence Bank, based in Michigan. These banks provide financial services in underserved communities. The other $25 million is deposited in the Academy money market share class – a partnership with Academy Securities, a disabled veteran-owned and operated investment bank – to support training and services to veterans, including job placement and transition services for veterans moving from active duty to civilian life.
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“OneMain is focused on aligning our cash management strategy with our mission to improve the financial well-being of hardworking Americans, particularly those in underserved communities. Our recent commitments in support of minority depository institutions and military veterans are designed to help communities become more financially secure and build stronger economic futures,” said OneMain Chairman and CEO Doug Shulman.
OneMain has a significant presence in the states where Sunstate Bank and First Independence Bank are located, operating 70 branches and employing more than 400 team members in Florida, and operating 25 branches and employing about 150 team members in Michigan.
“It is great to see the leadership of OneMain Financial taking proactive steps to demonstrate inclusion. The collaboration between J.P. Morgan’s Empower share class with OneMain creates new opportunities for institutions like First Independence Bank. The interdependence in finance is critical to create inclusion that is sustainable,” said Kenneth Kelly, Chairman and CEO of First Independence.
“As we focus on providing capital and financial services to our community, OneMain’s investment in J.P. Morgan’s Empower share class will expand our reach in helping underserved populations across the state of Florida,” said Lloyd DeVaux, President and CEO of Sunstate Bank. “We continue to focus on making progress on our mission to provide equitable access to resources and are empowered by the support of institutions like J.P. Morgan and OneMain Financial.”
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“Academy Securities has been honored to share our social mission to benefit veteran hiring initiatives with OneMain. Over the years of our partnership, OneMain has consistently set a clear and elevated standard in fostering opportunities for individuals and organizations that represent and evangelize the value of military veterans and their service. As part of OneMain’s commitment to social responsibility, Academy serves to deliver impact by reinvesting in our platform and creating frameworks for transitioning veterans to build career equity, post service to nation,” said Chance Mims, CEO of Academy Securities.
OneMain continues to expand opportunities for underserved borrowers through its impact investment strategy. In 2021, the company issued a $750 million Social Bond to serve credit-disadvantaged communities around the country, with a focus on women and minority customers. OneMain deepened this commitment in 2022 with a $600 million Social ABS Bond, the first of its kind by a U.S. issuer. Loans from the Social ABS serve borrowers residing in rural communities, at least 75% of whom are lower- income borrowers with annual net incomes of less than or equal to $50,000. In addition, OneMain has previously committed $35 million to funds supporting the Thurgood Marshall College Fund for students attending historically black colleges and universities and environmental investments.
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