A Message from our President & CEO: Lenwood V. Long, Sr. 

It is with great excitement and pride that I reintroduce The Alliance's newsletter - Community Voices. Through this bimonthly newsletter, we aim to foster a deeper sense of unity with our valued members, dedicated staff and board of directors, esteemed funders, and invaluable community partners.  

Community Voices will serve as a platform to strengthen the ties that bind us together as we work towards our shared vision of empowering Black-led CDFI CEOs and advancing economic justice. It will also celebrate our collective achievements, and share our members' successes. As we continue our fight for equity, we must be prepared to fight back against the vicious assault on affirmative actions and equity programs that could further widen the racial wealth gap. 

Our goal is to ensure that the newsletter becomes a two-way street of communication and serves as a reliable source by highlighting key developments in the CDFI industry. Your valuable feedback, suggestions, and contributions are instrumental in making this publication a true reflection of our shared aspirations. With that, I encourage you to delve into the stories below, as we embark on this exciting journey of shared knowledge and meaningful impact. 

Thank you for your continued support, dedication, and unwavering belief in The Alliance's mission. 

Be Steadfast!


Lenwood V. Long, Sr.
President & CEO  
 

The Alliance Receives $5M from Waverly Street Foundation to Support Justice Climate Fund

Due to extraordinary community partners and generous donors, we can continue to build the capacity of member organizations; build bridges to economic stability, wellbeing, and wealth for Black individuals, families, and communities; and build power in Black communities by challenging and influencing financial sectors to operate more equitably.  

Recently, The Alliance received $5M from the Waverly Street Foundation to support the growth of the Justice Climate Fund. A $500,000 from Kaiser Permanente and $1M+ grant from W.K. Kellogg Foundation will provide specialized training for Alliance members regarding GGRF and technology.  

Thank you to Waverly Street Foundation, Kaiser Permanente, and W.K. Kellogg Foundation! 

Fight for Environmental Equity & Climate Change

The Justice Climate Fund is led by the Community Builders of Color Coalition and is the vehicle that will aim to direct funding from the EPA’s Greenhouse Gas Reduction Fund to community-based lenders, including CDFI credit unions and loan funds and MDI credit unions. Through the Fund, the Coalition will be able to quickly distribute capital to organizations on the front-line protecting the most vulnerable populations. The Justice Climate Fund and the Coalition’s work have been featured in publications including: 

• Triangle Business Journal 
• ecoWURD (interview begins at 41 min timestamp)
• Wall Street Journal 

Announcing the launch of the Alliance’s Justice Climate Fund
Promotional Toolkit

Join us in spreading the word about our Alliance and the Justice Climate Fund! We're proud to share our new promotional toolkit, which is packed with a variety of resources, including social media content, digital assets, messaging templates, and other useful tools. Click here to view the content and start sharing! 

2023 Annual Meeting and Conference: Unapologetically Building Black Equity 

In a remarkable showcase of unity, empowerment, and economic advancement, The Alliance recently convened for their first-ever in-person Annual Meeting and Conference in Clearwater Beach, Florida on June 14 – 16, 2023. The theme of the conference Unapologetically Building Black Equity embodied the spirit of Alliance members and the work that they have dedicated their lives to. In case you missed it! Check out the recap below. 

Meet Our Member: Michael Jeans, President & CEO,
Growth Opportunity Partners, Inc 

Upcoming Alliance Trainings and Events

Throughout the month, The Alliance hosts a "Black Money Series" on LinkedIn Live. This captivating series is designed to shed light on the untold stories, success narratives, and vital discussions surrounding economic empowerment within the African American community. Don’t miss an opportunity to learn more about our Alliance Members and their work on shaping brighter futures for the communities they serve. leaders who are shaping a brighter financial future. Upcoming series include: 

• August 15 – Thelma Johnson, Albany Community Together 
• August 29 – Kevin Dick, Carolina Small Business Development Fund
• September 5 – David Sharp, Urban Advisors 
• September 19 – Lark Mallory, Affordable Housing Trust 

Alliance Membership Meeting & Meet-n-Greet 

• This October, our members will attend the 2023 OFN Conference in Washington. We look forward to catching up with them and other experts in the CDFI industry. Interested in becoming an Alliance Member?  Click here for more information.  

Programs & Strategic Initiatives 

African American Equity Impact Scorecard National Launch 

The Alliance and Community Vision announced the launch of the African American Equity Impact Scorecard at the OFN Small Business Finance Forum. To date, the Scorecard has had transformational effect on organizations, helping them to understand impact, view their work through a racial equity lens, and identify opportunities for disruption and institutional accountability. 

Women-Led Initiative  

At The Alliance, we address the unique capacity building needs of our Black & female CEO members through various workshops and training. Recently, we welcomed Director of the Federal Housing Finance Agency Sandra L. Thompson as a Women in Industry Speaker. During this exclusive session, Thompson shared how she’s navigated her career and triumphed over challenges to achieve her career goals and make an impact. Members left the session ready to empower their communities and ready to advance their careers.  

Inaugural CDFI 101 Program 

In partnership with Wilson Consulting Associates (WCA), the Alliance provided training and technical assistance to associate members pursuing CDFI certification. Over the course of two months, associate members completed several training modules. Topics included Leadership, Strategic Planning, Digitization, Compliance & Technology, and Marketing & Branding.  

The Alliance Housing Initiative 

The Alliance Housing Initiative is a groundbreaking effort by the Alliance to address housing instability and create equitable solutions. Since its launch, the Alliance has hosted three sessions to convene and engage affordable housing and developer-focused members and professionals in advocating for change, sharing best practices, and promoting homeownership and stable rental housing. Participants left each session with practical strategies to implement within the communities they serve.  

Interested in learning more about our programs? Contact Chavelle Sangokoya at csangokoya@aaacdfi.org  

Lenwood V. Long, Sr. Speaks at the GreenBiz Group's Greenfin Conference

CDFI Industry Updates: Policy & Research 

CDFI Fund Requesting Program and Policy Input on Capital Magnet Fund  

The Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) requests public comments on how it can enhance and improve the impact of the Capital Magnet Fund (CMF), streamline or minimize the administrative burden on CMF Applicants and Award Recipients, as well as safeguard public funds. Information provided in response to this Request for Information (RFI) will inform the CDFI Fund’s development of program policies and administrative practices that better support the activities of CMF Recipients to spur investment in affordable housing and related economic development efforts that serve Low-Income Families and communities. 

SBA Announces Community Advantage Small Business Lending Company Conversion 

The U.S. Small Business Administration (SBA) has issued an Information Notice (Control No.: 5000 -846918) to all SBA employees and Community Advantage Pilot Program Lenders announcing the initiation of a program by the SBA's Office of Credit Risk Management (OCRM) to enable current Community Advantage Pilot Program Lenders to become Community Advantage Small Business Lending Companies (CA SBLCs). 

This follows the SBA's final rule published on April 12, 2023, which lifted the moratorium on licensing new SBLCs and created a new type of SBLC, the CA SBLC. The rule also allowed for the grandfathering of current CA Pilot Lenders to be licensed as CA SBLCs. Once a CA Pilot Lender is authorized a CA SBLC license, they will transition from making 7(a) Community Advantage loans in a temporary pilot program to making regular 7(a) loans under a CA SBLC license in the 7(a) program. 

The SBA will hold all CA SBLCs to the same requirements as the CA Pilot Program, with a few updates. These include loan loss requirements and the discretion of the SBA's Administrator to determine appropriate fidelity insurance coverage levels for CA SBLCs. Certified Development Companies that are also CA Pilot Lenders as of May 12, 2023, may be licensed as CA SBLCs without having to form a separate entity. To transition to a CA SBLC, current CA Pilot Lenders must execute a Form 750, Loan Guaranty Agreement (Deferred Participation). The SBA will provide further guidance on SBA Loan Program Requirements for CA SBLCs through additional SBA policy notices and/or SOPs. 

The SBA intends to sunset the CA Pilot Program on September 30, 2023. All current CA Pilot lenders must execute an SBA Form 750 to extend their authority to make 7(a) loans (as CA SBLCs) after the CA Pilot Program sunsets, otherwise, their authority to make 7(a) loans will terminate. 

For any questions, please direct them to Betty Hill, Senior Financial Analyst, Office of Credit Risk Management at CAloans@sba.gov. 

Community Advantage Loan Program Act of 2023 

In a monumental move for small businesses and entrepreneurs, the Senate Entrepreneurship Committee has successfully pushed forward a package of 11 bills in July 2023 aimed to expand lending to small enterprises and bring about much-needed modernization to the Small Business Administration (SBA), with an exceptional emphasis on serving business owners hailing from low-income and marginalized communities. 

A key piece of this legislative package is Senate Bill 2482 (S. 2482), sponsored by Senator Ben Cardin (D-MD). This significant piece of legislation seeks to institutionalize the Community Advantage Loan Program, which has been operating in a pilot phase since its introduction in 2011. 

The Community Advantage program, currently set to conclude on September 30, 2023, is known for its dedication to providing small-dollar loans (those under $350,000) to women, minorities, and veterans who are managing businesses in underserved communities. S. 2482 proposes not only to make this program a permanent feature, thereby safeguarding it from discontinuation without Congressional approval but also to increase the loan limit to $750,000 for experienced lenders. 

Moreover, S. 2482 aims to overturn a pre-existing SBA rule (see (Control No.: 5000 –846918 described a above) to convert the Community Advantage lenders, numbering approximately 108 as of April 2023, into Mission-Based Lenders. The bill further proposes granting them Small Business Lending Company (SBLC) status by introducing a Community Advantage SBLC (CASBLC) designation. 

It is worth noting that the number of SBLC lenders has remained stagnant at 14 since the early 1980s. However, with the new SBA rule lifting the moratorium on licensing additional SBLCs, it has been indicated that the SBA has the necessary resources to absorb an additional three lenders into the SBLC framework for the foreseeable future. 

The Alliance has been actively engaged in this process, working in close collaboration with the SBA Office of Capital Access on the proposed SBLC rules and Senator Cardin's office on his legislative proposal. We are committed to maintaining an open and ongoing dialogue with both groups throughout the remainder of the year, and eagerly anticipate the positive impacts these changes will bring to small businesses across the country. 

For any questions, please contact Ryan Gremillion at rgremillion@aaacdfi.org.  

Let's Stay Connected!

We hope you enjoyed our newsletter. Have questions or want to submit content for future newsletters? Please contact Alisha Brown at communications@aaacdfi.org.