Partners CDC Small Business Finance and Capital Impact announce new alliance to foster equitable community growth
ARLINGTON, Virginia. and SAN DIEGO, Aug 4, 2020 / PRNewswire / – CDC Small Business Financing, the country’s leading small business lender, and Capital impact partners, a community development finance institution (CDFI) that champions social and economic justice on a national scale, is proud to announce a new alliance. With a focus on economic empowerment and equitable wealth creation, the two organizations have the unique ability to offer a full range of loan products and programs that support community efforts to create places of opportunity. strong, dynamic and healthy.
Realizing the need for a new approach to implement scalable solutions that bridge the growing racial wealth gap, CDC Small Business Finance and Capital Impact have been talking for over a year and, last fall, started working diligently together to create the foundation for this new corporate endeavor. Today, the need is greater than ever as generations of systemic inequalities are magnified by the disproportionate impacts of COVID-19 on black and Latin communities, as well as the issues raised by the wave of racial justice.
The alliance will immediately focus on supporting the recovery and relief needs of community members, small businesses and organizations, providing key social services that have been devastated by these uncertain times. With a $ 4 million grant from JPMorgan Chase as part of its efforts to support underserved small businesses and a grant from the Heron Foundation, CDC Small Business Finance and Capital Impact are well positioned to expand the impact of the alliance.
“The issues of access and opportunity in American communities require bold new thinking to bring about measurable change in community and economic development,” said Ellis Carr, President and CEO of Capital Impact Partners. “We understand that banks, donors and other institutions have historically been challenged to connect capital to communities. By leveraging our unique expertise, complementary mission-based approaches, and holistic strategies, we hope the alliance will accelerate solutions to meet large-scale needs. “
“Capital Impact and CDC Small Business Finance are industry leaders with a track record of driving innovative community development with an equity lens. Now, at a time when CDFIs and CDCs play a critical role in COVID-19 economic recovery, their alliance is reinventing the scope, scale and impact that mission-based lenders can have on underserved communities, ”said Ted archer, Head of Small Business Forward at JPMorgan Chase. “JPMorgan Chase is proud to support this alliance and deepen its impact, especially in communities of color.”
Work will begin through three location-based pilot projects in the Los Angeles, Detroit, and Washington DC Metropolitan areas (DMV). In each community, inter-organizational teams will actively listen and collaborate with local community members to understand issues unique to each region, while sharing strategically tailored tools, programs and services to address high priority issues.
The locations of the three pilot projects were intentionally chosen based on the current geographic focus of the place-based community empowerment strategies within the two organizations. Capital Impact is headquartered in Arlington, Virginia., with significant experience in the DMV for initiatives such as the DHCD Preservation Fund and Color Entrepreneurs Fund. Likewise, Capital Impact is committed with partners in Detroit since 2011 and has been heavily involved in the launch of the Detroit Neighborhood Fund and Equitable development initiative.
CDC Small Business Finance was founded in San Diego and even today offices there as well as sites and teams across California, Arizona and Nevada. For more than four decades, CDC Small Business Finance has helped California small business owners have access to more than $ 18.6 billion in financing. With an office at Oakland Over the past two decades, Capital Impact already has a history of community and economic development that complements CDC Small Business Finance’s SBA lending activities through California.
The efforts will be replicated and extended to other regions of the country based on the lessons learned from the first pilots in these three cities.
Collaboration with the New Alliance
Over the past 41 years, the individual impact that CDC Small Business Finance and Capital Impact have each had in their respective areas of interest has totaled over $ 23 billion. Capital Impact Partners has invested more than $ 2.5 billion community facilities and other intermediaries focused on equitable access to affordable housing, health care, food and education. Across all programs, CDC Small Business Finance has helped small businesses access more than $ 20.7 billion in financing. This deep and proven expertise will shape how the alliance works in the following areas:
- Communities — City and State: The experience of both organizations will help create a range of solutions in partnership with communities, addressing holistic strategies for the person to influence measurable systemic change. Partnerships will occur at all levels of community and economic development, including community members, organizations, financial institutions, investors, philanthropy, and government.
- Loans and Capital Sectors: Industry innovation is key to meeting the immense challenges American communities face in achieving racial, social and economic justice. The alliance will holistically focus on economic empowerment and wealth creation by jointly developing solutions specifically designed to address the specific issues facing each community.
- Donors and investors: By joining forces, the organization will strive, over time, to become a collaborative intermediary and partner for banks, donors and large institutions with the aim of helping them overcome legacy challenges by connecting efficiently capital
“Community development without economic development does not create intergenerational wealth and pathways out of poverty. And, economic development without community development can lead to gentrification and displacement,” commented Kurt Chilcott, President and CEO of CDC Small Business Finance. “With the alliance, we hope that a holistic approach that is inclusive, collaborative and equitable will have a greater impact than what the industry has seen before. To be successful, we realize that we must create solutions that consider every community and its residents have varying needs, backgrounds and access. ”
Capital Impact and CDC Small Business Finance were first introduced to each other by Next Street, a mission-driven consulting firm that advised each of the organizations on their individual strategic planning process. Next Street continued to play a pivotal role in helping to shape the alliance to help maximize the organization’s complementary expertise for maximum social impact.
- CDC Small Business Finance is a leader in community and economic development, providing access to transformative products, services and advocacy to ensure all small businesses have the opportunity to succeed and grow. Key offers include:
- Commercial real estate loan
- Small business loan
- Business consulting services
- Advocacy and politics
- Through capital and engagement, Capital Impact helps people create communities of opportunity that remove barriers to success. The basic offers focus on:
- Mission-oriented loans
- Capacity building and technical assistance programs
- Public policy
ABOUT CDC FINANCING SMALL ENTERPRISES
CDC Small Business Finance is the country’s leading mission-based, award-winning nonprofit, small business lender and entrepreneur advocate. In four decades, the organization has provided more than 12,000 small business owners with access $ 20.7 billion in financing. CDC Small Business Finance’s commercial and small business real estate loans have also played a critical role in boosting economic development and helped create and preserve more than 209,000 jobs in California, Arizona and Nevada. For more information, please visit: cdcloans.com.
ABOUT CAPITAL IMPACT PARTNERS
Through capital and engagement, Capital Impact Partners helps people create communities of opportunity that break down barriers to success. Through mission-based funding, social innovation programs, capacity building and impact investing, we work to advocate for key issues of social and economic equity and justice. Our commitment to the community aims to ensure that individuals have access to quality health care and education, healthy food, affordable housing, cooperative development and the ability to age with dignity.
A non-profit community development financial institution, Capital Impact has disbursed more than $ 2.5 billion since 1982. Our leadership in financial and social impact has enabled Capital Impact to be rated by S&P Global and recognized by Aeris for our performance. Based at Arlington, Virginia, Capital Impact Partners operates nationwide, with local offices in Austin, Texas, Detroit, Michigan, New York, New York State, and Oakland, California. Learn more about www.capitalimpact.org.
SOURCE Capital Impact Partners and CDC Small Business Finance