News and Events Type: News

Recent legal developments continue to challenge Diversity, Equity, and Inclusion (DEI) initiatives. A notable example is the case in Texas where the Wisconsin Institute for Law & Liberty (WILL) secured a permanent injunction against the Minority Business Development Agency (MBDA). The lawsuit argued that the MBDA’s programming, which aims to support minority business enterprises, was racially discriminatory as it provided services based on race and ethnicity. This, they claimed, violated the Equal Protection Doctrine. The MBDA, created by the 2021 Infrastructure Act, supports businesses owned by individuals facing racial or ethnic prejudice or cultural bias. However, the court’s ruling emphasized that any racial classification by the government must be narrowly tailored to a compelling interest. This decision could have broader implications, potentially impacting other programs designed to assist socially or economically disadvantaged groups.

We strongly oppose the recent decision declaring MBDA’s programs unconstitutional. These programs are essential for addressing the systemic barriers and historical disadvantages that minority-owned businesses face. This is underscored by the harsh realities that only 29% of Black-owned businesses that apply for loans receive at least some portion of the requested amount, in stark contrast to 60% of white-owned businesses; that the credit denial rate for Black-owned businesses stands at a significantly higher 38%, compared to just 14% for their white-owned counterparts; and that loans granted to Black-owned businesses typically come with interest rates that are, on average, 1.4 percentage points higher than those offered to white-owned businesses. 

By providing targeted support and resources to bridge these divides, MBDA’s initiatives foster a more equitable and diverse economic landscape. Stripping away these programs not only undermines our collective efforts towards inclusivity and equal opportunities for all entrepreneurs in underserved communities but also weakens the overall economy by stifling the growth and innovation that diverse businesses bring.

We beseech the Justice Department to appeal this decision. Unfortunately, contrary to the views of some, economic and education opportunities are not equal for people of color in America, underscored by the fact that minority-owned businesses are three times more likely to be denied traditional bank loans than non-minority businesses.

February 1, 2024   

U.S. Small Business Administration and the African American Alliance of CDFI CEOs Forge Partnership to Ignite Small Business Growth  

Partnership to Empower Small Businesses and Build Bridges Towards Economic Prosperity for Black Communities 

ORLANDO, FL – The African American Alliance of CDFI CEOs (The Alliance) and U.S. Small Business Administration (SBA) have announced a strategic partnership aimed at boosting entrepreneurship and supporting sustainable growth for small businesses. This momentous collaboration was celebrated with a signing ceremony on February 1, 2024, at the Hayti Heritage Center, 804 Old Fayetteville St, Durham, NC 27701. 

The partnership between The Alliance and SBA is built on a shared mission; helping start, maintain, and expand small businesses. The Alliance, a dynamic network of Black-led Community Development Financial Institutions (CDFIs), aligns with the SBA to build bridges towards economic prosperity for Black communities. The Alliance seeks to augment the capacity of its members, fostering further economic development.  

The partnership will focus on an integrated approach to provide Alliance members, and the communities they serve, with access to educational tools, technical assistance, and other essential programs for business expansion and scalability.  

Key areas of collaboration: 

• Business Development Services: The Alliance and SBA will offer technical assistance and other essential resources needed to support the growth and expansion of small businesses. 
• Education and Programmatic Support: Both organizations are committed to organizing and delivering training sessions and providing expert speakers for conferences and workshops. 

“We are excited to partner with the SBA in this historic agreement. Together we will harness the strengths and resources of our organizations in our continuing efforts to support small businesses and catalyze economic growth,” said Lenwood V. Long, Sr., President & CEO of the Alliance. “This partnership represents a significant milestone in our ongoing efforts to drive economic empowerment and provide impactful support to our members and the communities they serve, as well as solidifies an even stronger partnership in our work with the SBA. We aim to unlock new opportunities and create a more inclusive ecosystem for small business success.” 

“The SBA, under the Biden-Harris Administration, is proud to formalize our strategic alliance with the African American Alliance of CDFI CEOs (The Alliance) as we pursue our shared goals of equitably expanding access to capital, resources, and opportunity for the growing number of Black entrepreneurs,” said Administrator Guzman. “Under President Biden and Vice President Harris, Black business ownership is growing at the fastest pace in 30 years with the percent of entrepreneurial Black households doubling. This strategic alliance between the SBA and The Alliance will help us strengthen those new businesses, as well as the millions of established Black-owned businesses, so they can create jobs, innovate, and power our economy forward.”  

The strategic partnership between the SBA and The Alliance is set to ignite a new era of small business support and development. To learn more about The Alliance and its programs, visit https://aaacdfi.org/  

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About The African American Alliance of CDFI CEOs   

The African American Alliance of CDFI CEOs (The Alliance) is a coalition of more than 76 CEOs of Black-led Community Development Financial Institutions (CDFIs), comprising loan funds, credit unions, venture capital firms, and non-profit developers. Since 2018, The Alliance’s network collectively services all 50 states and the District of Columbia. As a result, members are uniquely positioned to address issues related to housing and access to capital for African American populations and communities. Learn more about The Alliance and its programs at http://www.aaacdfi.org.  

About U.S. Small Business Administration 

The U.S. Small Business Administration makes the American dream of business ownership a reality. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov. 

Media Contact: 

Alisha Brown 

African American Alliance of CDFI CEOs 

[email protected] / 901-849-0820 

Grant to Help the Alliance Address Housing Insecurities for Communities of Color 

ORLANDO, FL – The African American Alliance of CDFI CEOs (The Alliance) announced today a $100,000 grant from the Melville Charitable Trust (The Trust). The funding will support the Alliance Housing Initiative; a program designed to eradicate racial policies that perpetuate housing instability. 

The state of housing for Black America has been challenging. Systemic racism in housing policies has led to displacement and instability in Black neighborhoods, and lower rates of homeownership.  The Alliance Housing Initiative aims to address these disparities by creating equitable solutions that increase the percentage of Black and brown homeowners, prevent evictions, and ensure stability for communities that need it most. The Alliance and The Trust share a common interest in mitigating the hardships endured by minority and low-income populations. The grant will support the development of the Alliance’s housing strategy to empower members to advocate for anti-racist housing policy reform at the federal, state, and local levels, and to encourage members to adopt best practices that increase housing opportunity and improve housing stability in Black and brown communities. 

“Housing instability, especially in communities of color, remains a pressing issue that demands our attention and action. This grant is not just a financial contribution; it is a symbol of shared commitment towards eradicating systemic inequities within the housing market,” said Lenwood V. Long, Sr., CEO of the Alliance. “By focusing on housing stability, we can help communities build generational wealth and repair the harms of structural racism. We extend our sincere gratitude to the Melville Charitable Trust for supporting this crucial initiative.” 

“We believe that safe and stable housing is critical to ending homelessness. The Trust is committed to ensuring that all people have a home by focusing on systems change, policy and advocacy. Through collaborations with organizations like the Alliance we can ensure critical resources reach the communities that need it most,” said Alyia Gaskins, Senior Program Officer at the Melville Charitable Trust. Melville’s contribution brings the Alliance one step closer to creating a racial economic-justice ecosystem where Black-led CDFIs, and the communities they serve, can thrive. 

“There is an equity problem in the housing development system. Therefore, we need to strongly advocate for the communities that need affordable housing the most,” said Marshall Crawford, President and CEO of The Housing Fund. “I’m encouraged by collaborations between organizations like The Alliance and the Melville Charitable Trust because they foster a holistic approach to tackling homelessness.”  

By addressing inequitable systems and housing instability, The Alliance aims to improve the lives of people in marginalized communities, ensure equitable access to housing and close the racial wealth gap.  

To learn more about what’s next for the Alliance, please visit http://www.aaacdfi.org. 

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African American Alliance of CDFI CEOs  

The African American Alliance of CDFI CEOs, known as “The Alliance,” is a membership organization consisting of 76 CEOs from Black-led Community Development Financial Institutions (CDFIs). These institutions include loan funds, credit unions, venture capital firms, and non-profit developers. Since its establishment in 2018, The Alliance’s extensive network has provided services across all 50 states and the District of Columbia. To learn more about The Alliance and its programs, please visit http://www.aaacdfi.org.    

Media Contact:  

Alisha Brown / African American Alliance of CDFI CEOs  

[email protected] / 901-849-0820  

First Female President to Lead the Organization 

ORLANDO, FL – The African American Alliance of CDFI CEOs (The Alliance) proudly announces the appointment of Amber Bond as its new President. In assuming the role, Bond makes history as the first woman to lead the organization. Lenwood V. Long, Sr., who has been serving as President and CEO, will continue his role as CEO.

With over 17 years of dedicated service in economic development, Bond has proven herself a transformative leader. As Executive VP and COO, she has been instrumental in shaping the strategic vision and managing key initiatives for The Alliance over the past two years. Her expertise and innovative approach have been pivotal in enhancing the organization’s approach to operations, programs, strategic initiatives, and more. 

“Amber’s appointment as President marks a transformative chapter for The Alliance,” said Donna Gambrell, Alliance Board Chair and President & CEO of Appalachian Community Capital. “Her visionary outlook for the future of The Alliance brings immense excitement and we can’t wait to see the positive impact she will bring to the organization.” 

Lenwood V. Long, Sr., CEO of The Alliance and a renowned figure in the CDFI sector with over 30 years of distinguished service, will maintain his influential position as CEO. He remarked, “Amber Bond’s promotion to President is a testament to her extraordinary leadership and unwavering commitment to economic justice. Her vision and expertise are exactly what The Alliance needs as we prepare for the exciting future in supporting our members.” 

Bond’s appointment comes at a pivotal moment for The Alliance as it continues to champion initiatives that empower and build the capacity for Black-led community development financial institutions. In her new role she will provide general oversight to the Alliance and drive its strategic focus. She will also play a critical role within the broader stakeholder base, assisting the CEO with external relations between the board, community, and interagency partnerships.  

“I am deeply honored to step into the role of President at such a crucial time for our organization,” said Amber Bond, President of The Alliance. “My journey has been fueled by a passion for bringing equitable resources to black communities that level wealth building opportunities. In my new role, I am committed to expanding The Alliance’s impact, ensuring we continue to break new ground in service of our mission.”  

The Alliance had a remarkable 2023 of building partnerships and programs to serve Black-led CDFIs. Through collective efforts, The Alliance will continue to create pathways to prosperity for those who have been marginalized for far too long. 

To learn more about what’s next for The Alliance, please visit http://www.aaacdfi.org. 

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African American Alliance of CDFI CEOs  

The African American Alliance of CDFI CEOs, known as “The Alliance,” is a membership organization consisting of 76 CEOs from Black-led Community Development Financial Institutions (CDFIs). These institutions include loan funds, credit unions, venture capital firms, and non-profit developers. Since its establishment in 2018, The Alliance’s extensive network has provided services across all 50 states and the District of Columbia. To learn more about The Alliance and its programs, please visit http://www.aaacdfi.org.    

Media Contacts:  

Alisha Brown / African American Alliance of CDFI CEOs  

[email protected] / 901-849-0820  

2nd Year of $50,000 Gift to Continue Fostering Organization’s Black Leadership-driven Initiatives

CARMEL, Ind., Nov. 20, 2023 – CNO Financial Group (NYSE: CNO) announced today that for the second consecutive year, the company is donating $50,000 to the African American Alliance of CDFI CEOs (The Alliance). The national membership organization of 76 Black-led community development financial institutions (CDFIs) is committed to fostering social and economic justice for African American communities.

“CNO is pleased to once again provide our donation to The Alliance, which will enable meaningful advancements in support of its membership, including continued training and grant opportunities and increased staff to serve its members’ needs,” said Matt Zimpfer, general counsel and executive sponsor for CNO’s diversity, equity and inclusion program. “Importantly, we believe this donation renewal will further help The Alliance deliver increased access and benefit to its members – all in an effort to reach more unbanked middle-income Americans.”

The Alliance serves Black-led CDFIs nationwide, by supporting and empowering CDFI CEOs to lead and grow their institutional operations, teams, and social impact, while elevating the voices of these Black community leaders. The Alliance also supports African American and female CEO members – who systemically face racial and gender resource inequities that adversely impact their CDFIs and communities. In addition, the organization serves as a thought leader for CDFI public policy issues and engages in research that informs the need to continue its efforts toward helping Black communities achieve economic equity with all people. 

“We extend our heartfelt gratitude to the CNO Financial Group for once again choosing to invest in the Alliance’s pivotal mission to close the racial wealth gap,” said Lenwood V. Long, Sr., president & CEO of The Alliance. “Their ongoing commitment and generous funding for the second year running underscores their dedication to addressing racial equity challenges. We are deeply appreciative of CNO for being such powerful advocates and allies in our journey to empower African American communities and advance racial equity.”

Long noted the new donation will help further The Alliance’s CDFI 101 program, which helps emerging CDFIs to properly prepare and apply for CDFI certification – improving access to investment opportunities that can expand their impact on the community.

Last year’s financial donation from CNO was instrumental in enabling The Alliance to continue supporting such vital programs, including the African American Equity Impact Scorecard and the Alliance Women-Led initiative and its grant-making foundation.

CNO’s donation to The Alliance is part of the company’s long-standing commitment to support nonprofit organizations that address the health and financial wellness of middle-income Americans. CNO is also a signatory of the CEO Action for Diversity & Inclusion™ pledge, the Indy Racial Equity Pledge and a supporter of CEO Action for Racial Equity.

To learn more about CNO’s commitment to the community, diversity, equity, and inclusion (DE&I), and corporate social responsibility, visit www.cnoinc.com/corporate-responsibility.

About CNO Financial Group

CNO Financial Group, Inc. (NYSE: CNO) secures the future of middle-income America. CNO provides life and health insurance, annuities, financial services, and workforce benefits solutions through our brands, including Bankers Life, Colonial Penn, Optavise, and Washington National. Our customers work hard to save for the future, and we help protect their health, income, and retirement needs with 3.2 million policies and $33 billion in total assets. Our 3,400 associates, 4,600 exclusive agents and more than 4,000 independent partner agents guide individuals, families, and businesses through a lifetime of financial decisions. For more information, visit www.CNOinc.com.

About The African American Alliance of CDFI CEOs

The African American Alliance of CDFI CEOs (The Alliance) is a membership organization of 76 CEOs of Black-led Community Development Financial Institutions (CDFIs), comprising loan funds, credit unions, venture capital firms, and non-profit developers. Since 2018, The Alliance has represented all 50 states and the District of Columbia. As a result, members are uniquely positioned to address issues related to housing and access to capital for African American populations and communities. Learn more about the Alliance and its programs at http://www.aaacdfi.org.

Media contacts:

CNO Financial Group

Michael McNamara

[email protected]

(860) 549 6442

African American Alliance of CDFI CEOs

Alisha Brown

[email protected]

(901) 849-0820

Today, as we reflect on the newly unveiled Community Reinvestment Act (CRA) regulations, it is essential to recognize the significance of this moment. This landmark legislation, first enacted in 1977, has been a critical tool in the fight against redlining and the promotion of equitable access to banking services for low- and moderate-income communities. The recent revisions, the most significant since 1995, mark a crucial step forward in modernizing the law to reflect the changing landscape of banking in the digital age.

Despite the laudable progress marked by these regulatory changes, there is a lingering sense of what more could have been accomplished in addressing racial equity in banking. Our nation’s struggle with racial disparities in home ownership and wealth accumulation remains a stark reality. While 75 percent of white Americans have a home to call their own, only 46 percent of Black Americans can say the same, and the average white household holds wealth almost eight times that of its Black counterpart.

The decision by regulators – including the Federal Reserve, the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC) – to mandate transparency by compelling large banks to disclose home mortgage loan data, segmented by borrower income, race, and ethnicity, while commendable, merely scratches the surface. By leveraging extensive HMDA data, one would anticipate a more profound commitment to not only transparency but also accountability. Yet, the disclosure, in its current form, lacks the bite to challenge the status quo. It does not encompass a thorough examination of lending practices to address redlining concerns, nor does it hold the banks accountable for potential disparities evident in the data. This could have been a pivotal moment to radically reshape the narrative for Black Americans in their pursuit of homeownership, but it feels as though we’ve stopped short of making that transformative leap toward racial equity.

Further, when it comes to amplifying the voice of those advocating for the disclosure of non-mortgage lending data rooted in race and ethnicity, like the CFPB’s Section 1071 data, the regulators opted for restraint. Their focus remained narrowly tethered to the transparency of a bank’s mortgage lending. The broader spectrum of lending, which has profound implications for Black communities, was left untouched. While the complexities associated with data access are acknowledged, waiting for every star to align before taking action seems a timid approach for agencies tasked with ensuring equity.

Also, the void left by overlooking race-focused lending metrics, geographical and borrower distribution standards, along with widespread support for the inclusion of race and ethnicity into the Retail Lending Test, feels like a missed beat. These elements held the potential to be our frontline tools in confronting and breaking down racial disparities from the ground up, yet this tentative approach does not resonate with the transformative steps we had hoped for.

Finally, it seems as though the regulators are missing a crucial piece of the puzzle by not including data on the racial and ethnic identities of those benefiting from community development activities. The regulators’ caution, prioritizing logistical concerns over potential transformative impacts, is misaligned when our times demand bold action. We might have just lost an opportunity to deeply assess if, and the extent to which, our efforts genuinely uplift those they are meant for and if they are making a real dent in narrowing the racial divide.

Instead, by incorporating explicit racial equity mandates into the CRA final rule, the regulators could have sent a powerful message, directly challenging the age-old lending biases that have persistently held Black Americans from the foundational pillars of wealth creation. True, the terrain is fraught with legal intricacies, but there are some struggles, no matter how intricate, where our commitment must not waver. Pushing for racial fairness and justice in banking is unmistakably one of them. And as the reverberations of these regulatory choices linger, we are left wondering: had we summoned the courage to go further, might we be nearing a moment where Black Americans are on a level playing field in their pursuit of homeownership and wealth?

The era of hesitating in the face of racial disparity is behind us; today, we are summoned to take decisive and fearless action. Let this moment serve as a catalyst for change, inspiring us to redouble our efforts in the pursuit of a more equitable society where the dream of wealth accumulation and financial security is within reach for all, regardless of their race or ethnicity.

“Racial equity in the banking sector is imperative. Beyond just fairness, it’s an urgent call for justice and a critical step toward economic empowerment for all. As we grapple with the intricacies of the revised CRA, the spirit of its original intent cannot wait; we must fervently challenge and expand what we believe is possible. The path to banking equity is immediate, and only with unwavering dedication and collective action will we establish a banking system that genuinely represents everyone.” – Lenwood V. Long, Sr., President & CEO of The Alliance.

The CDFI Fund recently announced that $5 billion has been allocated under the New Markets Tax Credits Program (NMTC Program), a move set to catalyze investment and economic growth in both urban and rural areas. In the 2022 round of the NMTC Program, 102 Community Development Entities (CDEs) emerged as the beneficiaries of these tax credits. These entities were handpicked from a competitive group of 197 applicants that requested an aggregate total of $14.8 billion in tax credit allocation authority. The geographic spread of the award recipients is impressive, spanning 36 states and the District of Columbia. A noteworthy aspect of this allocation is the emphasis on rural upliftment. Over a fifth of the investments are designated for rural locales, translating to an estimated $1 billion in NMTC investments directed towards non-metropolitan counties.

Among the CDEs receiving awards, three Alliance members deserve special mention for their outstanding contributions and commitment to community development: the Black Business Investment Fund, the South Carolina Community Loan Fund, and the Texas Mezzanine Fund. Their recognition is not just a testament to their dedication but also a beacon of hope for other entities striving to make a difference.

With the recent allocation, the cumulative funding via the NMTC Program has surpassed $76 billion. Over time, every dollar from the federal government under this program has traditionally attracted eight times that amount from private sectors. As of the conclusion of the 2022 fiscal year, entities benefiting from NMTC Program awards have channeled in excess of $62.9 billion into ventures within underserved communities and businesses. This funding has directly contributed to the establishment or preservation of over 857,000 employment opportunities and facilitated the development or refurbishment of approximately 239 million square feet in commercial property.

ORLANDO, FL – The African American Alliance of CDFI CEOs (The Alliance) announced today a generous $500,000 grant from Kaiser Permanente. This funding will support general operations and enable The Alliance to provide essential training and technical assistance to Black-led Community Development Financial Institutions (CDFIs) seeking to apply for the Greenhouse Gas Reduction Fund (GGRF). 

The Greenhouse Gas Reduction Fund, overseen by the U.S. Environmental Protection Agency (EPA), has the potential to enact substantial environmental improvements by funding greenhouse gas- and air pollution-reducing projects in communities across the U.S., including low income and disadvantaged communities. The program is being implemented through three grant competitions. Yet, many Black-led organizations face barriers navigating the complex application process, thereby limiting their access to these crucial funds and resources.  

“When it comes to achieving climate justice, it is imperative that we fight together to protect all communities and neighborhoods threatened by the growing climate crisis,” said Lenwood V. Long, Sr., President and CEO of The Alliance. “With the support from Kaiser Permanente, The Alliance will facilitate green economy lending training and the development of toolkits to support members through every phase of GGRF preparation and application process.” 

“Kaiser Permanente is committed to helping diverse entrepreneurs launch and sustain successful small businesses, become agents of change in their own communities, and build wealth for themselves, their employees, and their communities,” said John Vu, vice president of strategy for Community Health at Kaiser Permanente. “This funding has the additional benefit of targeting environmental health, which we know negatively impacts communities of color more severely than others. We are proud to partner with The Alliance to ensure that critical public resources, such as the GGRF, are equitably distributed and reach the communities that need it most.” 

By providing training and technical assistance, The Alliance aims to unlock the potential of Black-led organizations to drive environmental solutions and strengthen their communities. Through the GGRF, these organizations can fund projects that reduce greenhouse gas emissions, improve air quality, and create sustainable, green jobs for our economically vulnerable and marginalized communities.   

For the latest updates and additional information on The Alliance’s programs and initiatives, please visit www.aaacdfi.org. 

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About The African American Alliance of CDFI CEOs   

The African American Alliance of CDFI CEOs (The Alliance) is a membership organization comprising of more than 76 CEOs of Black-led Community Development Financial Institutions (CDFIs), comprising loan funds, credit unions, venture capital firms, and non-profit developers. Since 2018, The Alliance’s network collectively services all 50 states and the District of Columbia. As a result, members are uniquely positioned to address issues related to housing and access to capital for African American populations and communities. Learn more about The Alliance and its programs at http://www.aaacdfi.org.  

Media Contacts: 

Alisha Brown / African American Alliance of CDFI CEOs 

[email protected] / 901-849-0820