Latest news with #CDFIs
Forbes
30-07-2025
- Business
- Forbes
Reclaiming Our Blocks: Homeownership as a Force for Community Renewal
Have you ever driven through a city and noticed how quickly the surroundings can shift? From well-maintained streets with smooth pavement, clean sidewalks, a community park for families, and thriving homes to neighborhoods marked by despair, neglect, and limited access to basic amenities like a grocery store? Oftentimes, communities with greater financial resources benefit from better-maintained infrastructure, while lower-income neighborhoods are frequently left with deteriorating conditions and minimal reinvestment. The barriers to economic progress in Black communities are deeply rooted in historic practices like contract buying, redlining, appraisal bias and undervaluation, and predatory lending. Many of these disparities extract wealth and opportunity from underserved communities, rather than revitalize them, enriching outside investors instead of local residents. Community Development Financial Institutions (CDFIs) such as Neighborhood Housing Services of Chicago (NHS), are nonprofit and community development lenders who have the ability to provide special products and programs designed to increase access to capital for those who traditional lending institutions underserve. The organization is actively investing in Black communities by addressing systemic disparities through housing resources, education, and grants that not only increase homeownership but also revitalize neighborhoods from within. Families in disinvested communities often face crumbling infrastructure, unsafe housing, and the challenges of living in food deserts with few recreational spaces. These conditions harm residents' health and well-being while also making homeownership—a key path to intergenerational wealth—difficult to attain. Over the last five years, NHS has closed over $16 million in home loans resulting in 977 new homeowners in the Chicago area and prevented 384 families from foreclosure, helping them preserve their homes and maintain stability in the communities they've long called home. NHS's Next Level program is designed to go beyond traditional homeownership education, expanding into vital areas such as real estate investing, entrepreneurship, financial markets, and estate planning. Additionally, the organization partnered with the Chicago Community Trust, Chase Bank, and the Woodstock Institute to provide NHS Equitable Mortgage products that increases access to mortgage credit and consumer buying power for Black and underrepresented households. 'We believe that a strategic approach which creates a resource ecosystem of comprehensive financial education, equitable access to capital and access to quality affordable homes and real estate assets is the key to revitalizing neighborhoods, preserving cultural legacies and promoting the building of generational wealth for Black families and neighborhoods,' said Anthony E. Simpkins, CEO of NHS. One of NHS's clients, Tameah Foley, a 29-year-old Chicago native, fulfilled her dream of becoming a multi-unit homeowner in the Chatham neighborhood—a goal rooted in her desire to build generational wealth and offer affordable housing in her community. She prepared for homeownership by completing NHS's Home Buyer Education and Landlord Training courses, which equipped her with essential knowledge and confidence. With support from an NHS grant, Tameah closed on her two-flat in August 2023. With over 8,000 residents benefiting from the organization's homebuyer education and counseling services, Tameah's journey reflects the power of accessible resources, financial education, and community investment in turning the dream of homeownership into a reality. Homeownership plays a critical role in the upkeep and long-term vitality of neighborhoods. When residents have a stake in where they live, they are more likely to invest in maintaining their homes and surroundings, contributing to safer, more stable, and vibrant communities. CDFIs recognize this connection between homeownership, neighborhood revitalization, and wealth creation, which is why they offer programs, education, and resources designed to empower residents rather than displace them. 'Our goal is to promote investment that is not extractive, nor drives displacement, but instead helps families stay rooted in community and transfer wealth intergenerationally, preserving cultural and historic community legacies,' said Simpkins. As communities navigate today's pressing challenges, funders and policymakers have a critical opportunity to invest in CDFIs to drive homeownership, support Black entrepreneurship, and advance neighborhood revitalization that aligns with communities' values and needs. 'This is not charity; it's a proven and sound business strategy that produces both economic and social returns by creating thriving, income-diverse communities that improve economic outcomes for everyone,' said Simpkins. 'It's also how we close the racial wealth gap and repair the damage resulting from generations of disinvestment. And it's how we build a more inclusive, resilient economy for everyone.' NHS's work in housing reflects the vision and values of the African American Alliance of CDFI CEOs (The Alliance), a national organization committed to advancing economic justice and empowering Black-led CDFIs to close the racial wealth gap nationwide. As a proud member of The Alliance, NHS is part of a movement working to ensure that community-rooted solutions like theirs are supported, scaled, and sustained. Their membership reinforces a collective mission to reclaim our blocks – not just with brick and mortar, but with equity, dignity, and opportunity. To learn more about NHS's impact and commitment to revitalizing neighborhoods without displacement, visit
Yahoo
09-07-2025
- Business
- Yahoo
Bank of America Commits Over $3.5M to LA Wildfire Recovery, Including Aid for Small Businesses, Branch Rebuilding
Bank of America Corporation (NYSE:BAC) is one of the best US stocks to buy and hold in 2025. As Los Angeles marks 6 months since the onset of the January 2025 wildfires, Bank of America announced on July 7 an additional commitment of over $1 million in philanthropic capital to local nonprofits. The latest round of grants brings Bank of America's total fire-related contributions to more than $3.5 million, in addition to direct assistance provided to thousands of its clients and hundreds of employees and their families affected by the disaster. $400,000 from this aid has been directed to small businesses through 3 local Community Development Financial Institutions/CDFIs to provide technical coaching and low-cost microloans. A professional banker providing consultation to a customer in the security of his office. Bank of America itself was directly impacted by the wildfires, with 2 of its financial centers in Altadena and the Pacific Palisades being destroyed. In response, the bank quickly established a temporary mobile center and has committed to rebuilding new permanent financial centers in these communities. Bank of America Corporation (NYSE:BAC) provides various financial products and services for individual consumers, small and middle-market businesses, institutional investors, large corporations, and governments worldwide. While we acknowledge the potential of BAC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey.
Forbes
22-04-2025
- Business
- Forbes
What's At Stake For OFN In Its $2.9 Billion Fight With The Trump Administration
Renewable Energy - Climate Change Policy This Earth Day, amid renewed calls for climate action and community reinvestment, a legal battle is unfolding that could shape how the U.S. funds its green economy—and who benefits from it. Earlier this month, Opportunity Finance Network (OFN), a national network of more than 400 community development financial institutions (CDFIs), filed suit against the U.S. Environmental Protection Agency (EPA) for what it describes as the unlawful suspension of $2.9 billion in federal funding previously awarded through the Greenhouse Gas Reduction Fund (GGRF). These funds were intended to be deployed through mission-driven lenders to support clean energy financing and small business investment in historically underserved communities. The lawsuit raises more than procedural concerns. It asks whether federal agencies can withhold congressionally authorized funds without public explanation—and what that means for nonprofit and community-based organizations increasingly called upon to implement climate solutions on the ground. The implications for entrepreneurship and small business development are particularly striking. Under OFN's proposed model, the $2.9 billion in EPA funds would have flowed through CDFIs to finance solar installations, green infrastructure, and other energy projects—not only reducing carbon emissions but also creating thousands of contracting, installation, and service jobs for small business owners, particularly those in low-income or disadvantaged areas. Many of these entrepreneurs, often excluded from traditional banking channels, stood to benefit directly from a clean energy economy that was finally designed with them in mind. Now, those opportunities are in limbo. In its official statement, OFN called the freeze 'an unlawful and irresponsible decision that threatens billions in private sector capital and thousands of new jobs,' and emphasized that it 'undermines one of the most significant investments in environmental justice and economic inclusion in our nation's history.' This legal fight is happening against the backdrop of broader political pressures on climate and equity-focused nonprofits. As Reuters recently reported, several major climate organizations are bracing for heightened scrutiny under a potential second Trump administration, including potential investigations into their tax-exempt status. While some lawmakers, such as Rep. Lee Zeldin, have publicly denied any targeting, the concern alone is having a chilling effect across the field. So what happens next? Will this case establish legal safeguards for mission-driven implementers of federal funding? Or does it foreshadow a more precarious environment, where political shifts can stall billions in clean energy investments—and the small businesses that rely on them? Earth Day is often a time for reflection on environmental goals. But this year, it may also prompt a deeper inquiry: What good is a climate investment strategy if the funds can be paused without warning? And what happens to small businesses, community lenders, and workforce partners who structured their growth around a now-frozen pipeline? This is no longer just a matter of environmental justice. It's a question of economic stability, contractual trust, and the future of public-private partnerships in delivering climate and economic solutions—particularly to communities that have historically been last in line. As the court considers OFN's claims, many in the field will be watching for more than a verdict. They'll be searching for a signal that the rules of engagement for mission-aligned funding are still intact.
Yahoo
17-04-2025
- Business
- Yahoo
New loans to help Latino-owned businesses off the ground
GRAND RAPIDS, Mich. (WOOD) — Kent County has approved a $1.2 million grant to help provide loans to Latino entrepreneurs. 'It's a turning point for our Latino businesses,' Melissa Boughner, the president of the , said. The Hispanic Center made the announcement at its headquarters Thursday morning. The loans aim to give new and emerging Latino business owners a helping hand to grow and thrive. 'It is incredible to receive support from Kent County at this level,' Boughner said. 'It's quite the statement to say, 'We believe in the Latino community. We know the impact they have. We can't ignore it. We want them to continue to be a prosperous part of our community.'' How local groups address needs of fast-growing Hispanic population The goal is to help entrepreneurs who don't qualify for traditional loans at the bank, whether it's because of their financial history or because of language barriers. Starting Monday, those interested can call the Hispanic Center and be screened for the loan that best fits their needs. The loans range from $1,000 to $250,000. The Hispanic Center is teaming up with two community development financial institutions, known as CDFIs, that support undeserved communities. 'It's really to get you to that next level to be bankable,' said Alexis Hill, a loan officer for Opportunity Resource Fund, a CDFI part of the program. 'So you can get that generational wealth and grow your business. A lot of these businesses can be stunted just because they can't have access to capital.' New Hispanic Chamber HQ plans aim to exemplify 'vibrancy of community' It's not just the money. Business owners can also get marketing, literacy and technical help that's in Spanish. As West Michigan's Latino population continues to grow, the Hispanic Center hopes these efforts will create more opportunities for the community to build lasting wealth and stability. 'In the midst of everything happening in our nation, this is good news for our Latino community and for us at the center,' Boughner said. More information is available on the Hispanic Center's website. While only Kent County residents are eligible for this program, Boughner said the Hispanic Center plans to launch other initiatives soon to help Latinos across West Michigan, including on the lakeshore. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
14-04-2025
- Business
- Yahoo
Trump Administration's Push To Cut CDFI Funding Faces Bipartisan Backlash as Rural Homebuyers Risk Losing Critical Support
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. The Trump administration recently made a decision that could have negative consequences for a large segment of homebuyers traditionally not reached by big banks. President Donald Trump issued an executive order on March 14 to cut funding for the Community Development Financial Institutions Fund. Per the executive order, the multi-billion dollar program will see 'personnel' and 'function' cuts, reducing them to only what's legally necessary. Don't Miss:Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – CDFI, which was launched 1994, provides funds to rural areas underserved by big banks. These communities are traditionally in lower-income areas of the country. Pravina Raghavan, director of the Community Development Financial Institutions Fund, explains the fiscal 2024 impact to Financial Assistance awards was over $408 million. FA awards provide capital for CDFIs to finance affordable housing and increase homeownership among other services in low-income and distressed communities. After the executive order was issued, there was a swift response from both Democratic and Republican representatives. A letter co-authored by Sens. Mike Crapo (R-ID) and Mark Warner (D-VA), among others to Treasury Secretary Scott Bessent reaffirmed their support for the CDFI Fund, referencing its positive economic impact. Trending: BlackRock is calling 2025 the year of alternative assets. Bessent said during his confirmation hearing earlier this year that he supported CDFIs. He said they played a "very important" role in their target communities. Through the inception of the fund through February, Arkansas and South Carolina, two states that have voted for Republican presidential candidates since 2000, have received $3.2 billion, and $1.7 billion, respectively. Rep. French Hill (R-AR) and Sen. Tim Scott (R-SC) have been strong proponents of the fund in the past. In the letter to Bessent, the Defense Credit Union Council mentioned that a cut to the CDFI would impact 495 CFDI-backed credit unions, providing services for millions of U.S. to the CDFI's annual report for fiscal 2024, funding was the highest it has ever been to date and yet, still did not fulfill all of the requests received. "CDFIs play a key role with FHFA and our regulated entities in efforts to address the nation's affordable housing challenges, working on the ground in their communities to deliver positive outcomes for underserved households," then-Federal Housing Finance Agency Director Sandra L. Thompson said in November. If the executive order stands, there would be an even greater disparity between requests for funding and resources allocated. Read Next: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — , which provides access to a pool of short-term loans backed by residential real estate with just a $100 minimum. Send To MSN: 0 This article Trump Administration's Push To Cut CDFI Funding Faces Bipartisan Backlash as Rural Homebuyers Risk Losing Critical Support originally appeared on
