For Immediate Release
Contact: Brian M. Maxey, 510-813-7552
New report explores how California Reinvestment Coalition’s Resilience Fund program empowered BIPOC-led community development financial institutions to expand their reach.
LOS ANGELES, March 21, 2023 — The California Reinvestment Coalition (CRC) enabled 11 California-based developing and existing Community Development Financial Institutions (CDFIs) to process nearly 500 new loan applications, originate 223 new loans and build loan portfolios of more than $2 million, according to results released today in its first-ever Resilience Fund Impact Report.
The report, “CRC Resilience Fund: Building a New Generation of BIPOC-led CDFIs,” provides a detailed analysis of the inaugural year of the racial and economic justice nonprofit organization’s Resilience Fund program, a two-year, $4.5 million initiative that provides grants and capacity-building to launch a new generation of CDFIs.
“We are proud to share this inaugural impact report on our Resilience Fund program as it exemplifies our commitment to building an inclusive and fair economy that meets the needs of low-income and Black, Indigenous and People of Color communities,” said Paulina Gonzalez-Brito, Chief Executive Officer of CRC. “We know CDFIs are often the best option for performing outreach to rural areas, indigenous communities and communities where economic infrastructure is lacking due to historical disinvestment and exclusion by financial institutions. The results from our program underscore why it’s so important that CDFIs are supported. Without them, BIPOC, rural and women entrepreneurs wouldn’t receive loans.”
The outcome is geared toward BIPOC-led CDFIs to invest directly in communities hit hardest by the pandemic and to build new pathways to economic resilience.
“We are humbled by the success each of our cohort members has achieved in Year 1 of this two-year cohort,” said CRC Resilience Fund Program Manager Yehwroe S. Martyn. “These are the results that make our work worth it. We hope to see continued growth and success from each of these organizations in Year 2 of the program and beyond.”
Highlights from the report include:
- 499 new loan applications processed
- 223 new loan originations
- Loan portfolios totaling more than $2.2 million
- 7 small businesses with three to 20 employees created/sustained
- 108 micro-businesses with three or fewer employees created/sustained
- 124 jobs created/retained through lending activities
- 253 families positively impacted (housing, small business, loans, microloans)
Launched in the fall of 2021, the Resilience Fund provides training and technical assistance, peer-learning activities and two-year grants of $200,000 to $250,000 to selected organizations. The grant funding allows cohort members to hire new employees, build operational infrastructure, strengthen organizational balance sheets, and provide expanded programming with the objective of achieving CDFI certification.
Bank of America, Capital One, Cathay Bank, Chase, CIT Bank, City National Bank, East West Bank, First Republic Bank, Flagstar Bank, Mechanics Bank, Pacific Premier Bank, Signature Bank, Silicon Valley Bank, Tri Counties Bank, The San Francisco Foundation, The Walter & Elise Haas Fund, Wells Fargo, U.S. Bank and other organizations contributed to the $4.5 million fund.
Download the report
About the California Reinvestment Coalition
The California Reinvestment Coalition (CRC) builds an inclusive and fair economy that meets the needs of communities of color and low-income communities by ensuring that banks and other corporations invest and conduct business in our communities in a just and equitable manner. CRC’s 300 organizational members include multi-service agencies, affordable housing developers, housing and financial capability counselors, tenants’ rights and legal aid organizations, small business technical assistance providers, Community Development Financial Institutions (CDFIs), small farm incubators, immigrant service organizations, and other community-serving organizations located throughout California. We envision a future in which people of color and low-income people live and participate fully and equally in financially healthy and stable communities without fear of displacement and have the tools necessary to build household and community wealth.