BANK OF AMERICA
Feasibility Study to Help Determine New Approaches to Funding Support for Our Nation’s Service Members
Bank of America today announced plans to assess the use of innovative social financing, such as social impact bonds and other pay-for-success programs, to address critical shortfalls in the funding of effective reintegration and ongoing support services for military veterans.
There are more than 21 million veterans living in the U.S. today, many of whom face employment barriers, struggles with homelessness and chronic physical and psychological challenges associated with their service. As current military conflicts wind down, add to that total a proposed reduction of 2.5 million active service members, creating demand for veteran services unlike any since the end of World War II. Meeting this urgent need, and expanding services and support for existing veterans, requires additional resources and funding.
For this reason, Bank of America has commissioned a four-month feasibility study, to be conducted between May and August by Social Finance Inc., to examine this population along with key issue areas that could be addressed – such as workforce development, homelessness or overall wellness – and to review proven providers of these important services. The study will also assess how new financial instruments and programs could help, how they would be funded and their success measured. Based on the results of the study, the company will then evaluate the offering of interests in one or a series of social investment vehicles designed to have a positive impact on the lives of our veterans.
Last year, Bank of America introduced an innovative social impact partnership with New York State and Social Finance that resulted in a successful capital raise of $13.5 million to fund a new pay-for-success program focused on comprehensive reentry employment services for formerly incarcerated individuals. Preliminary research conducted by Social Finance indicates the potential for a $50 to $75 million initial capital raise opportunity for the funding of a veteran-focused pay-for-success program.
Bank of America has supported the U.S. military with banking services for more than 90 years, and currently serves more than 2 million military households. The company is committed to helping veterans as they transition back to civilian life, including the goal to hire 10,000 veterans, Guard and Reservists during the next few years. We also support the military community nationwide through philanthropic contributions to military-focused nonprofits and volunteering. Our employees volunteered more than 40,000 hours last year and the bank recently announced that it surpassed its three-year commitment to donate 1,000 homes to military families through nonprofit organizations. Other efforts in which the company is involved include the George Bush Institute’s Military Service Initiatives, Wounded Warrior Project® and Welcome Back Veterans, as well as our Express Your Thanks program.
Bank of America
Bank of America is one of the world's largest financial institutions, serving individual consumers, small businesses, middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 49 million consumer and small business relationships with approximately 5,100 retail banking offices and approximately 16,200 ATMs and award-winning online banking with 30 million active users and more than 15 million mobile users. Bank of America is among the world's leading wealth management companies and is a global leader in corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations in more than 40 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
Please note that social impact bonds are a relatively new and evolving area which is highly speculative and involves a high degree of risk.
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