A team of power players just invested $4.7B for underrepresented founders in the Baltimore to Richmond corridor

As the District prepares its tech investments and President Joe Biden drops his own budget for the new year, a local conglomerate is making a $4.7 billion move for local founders.

The Greater Washington Partnership, a group of CEOs from some of the top companies in the Baltimore to Richmond region, is making the investment over the next five years. The funds are aimed at BIPOC and other underrepresented entrepreneurs in the region. Vice President Kamala Harris made a formal announcement earlier today, alongside Secretary of Commerce Gina Raimondo and Small Business Administration Administrator Isabella Guzman.

Kathy Warden, CEO of Northrop Grumman and vice chair of the partnership, said Washington Partnership believes the region will lead the economy of the future, and investments like this are one of the ways it hopes to boost equity in the region.

“As an organization, we are focused on driving long-term, collective action to bring shared prosperity and economic competitiveness to the Greater Washington region,” Warden told Technical.ly. “The Greater Washington region is one of the largest regional economies in the United States. We have no shortage of businesses and talent to attract and retain the best opportunities for all.”

Here’s the breakdown of the funds:

• $2.6 billion for procurement spending, aimed at diverse suppliers and Minority Business Enterprises. This will be geared toward Black and Latinx-owned businesses, specifically, and the parties above expect the investment to come back to the tune of approximately $3.5 billion in revenue for small and medium-sized businesses.
• $1.5 billion for general wealth building for the communities and founders involved. This can mean anything from affordable housing efforts and community organizations to funding entities aimed at diverse founders.
• $619 million for local Community Development Financial Institutions and Minority Depository Institutions. Organizations included under this umbrella work toward efforts like loans for women and BIPOC-owned businesses alongside other community efforts.

“The scope of this investment in this region is unparalleled and shows the deep commitment of our business community to create a more fair and inclusive economy,” said Peter Scher, vice chairman at JP Morgan Chase, in a statement. “This is a moment when leaders from all sectors have to step up and take action. We are thrilled that so many organizations are making the kind of investments that will lead to tangible and lasting change. This is a testament to the power of collective action.

The $4.7 billion is an investment from Akin Gump Strauss Hauer & Feld, 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, Kaiser Permanente, McKinsey & Company, Northrop Grumman Corporation, SAIC, Thompson Hospitality, Truist, Washington Commanders and Wells Fargo. Alongside this investment, the partnership is working on an Inclusive Growth Blueprint, in collaboration with Deloitte, a 10-year roadmap for closing equity gaps in the DMV.