What: Macy’s aims at helping SMEs from minority backgrounds to develop and scale up their companies.

Why it is important: The new fund is a smart way to both promote diversity but also secure a good ROI in terms of new brands and products access for Macy’s.

Macy’s has teamed up with Momentus Capital, a small business lender, to launch a $200m fund to help entrepreneurs from underrepresented backgrounds, of which Macy’s contributes to $30m.

This fund aims at helping Macy’s vendors to scale their companies and meet the demand, but non vendors can also apply to a variety of support, including 10 years loans or capital participations. This action is part of Macy’s plan to promote diversity and sustainability, but also helps the retailer to secure access to new products and brands as well.

Inside the Macy’s plan to fund underrepresented entrepreneurs