News and Events Type: Publications

Los Angeles shows us what can happen when protest is met with force instead of dialogue.

It started with a series of ICE raids at worksites and in neighborhoods across the city. More than 100 people were detained in a single day, many without prior records, according to legal observers. Community members responded quickly. That same night, thousands marched to demand answers and raise concerns about how fast and far the enforcement went. While most protests remained peaceful, tensions did rise. There were reports of scattered fires, broken windows, and confrontations with police.

Despite those tensions, Governor Gavin Newsom and Mayor Karen Bass made it clear that the situation was under control. Both opposed federal intervention. But on June 9, the president sent more than 4,000 National Guard troops and 700 Marines into Los Angeles without the governor’s consent.

This was the first time in more than 60 years that a sitting president federalized a state’s National Guard over that state’s objections. The White House cited a federal statute that permits such action in times of insurrection. Even so, civil liberties groups are now asking:  if protests can be framed this way, what does that mean for future demonstrations across the country? Sending in troops doesn’t just enforce the law; it sends a signal that dissent is something to be suppressed, not heard.

At the African American Alliance of CDFI CEOs, we believe protest is a core function of democracy. That right has never been easy, but it has always mattered, from labor strikes to civil rights marches to the ongoing fight for racial and economic justice. Protest is how people without power make their voices count.

We also believe in accountability. Acts of looting and violence are unacceptable. They put communities at risk and undermine the message of peaceful protest. Those actions should be addressed through the legal system. However, we cannot let isolated incidents justify a military-style response to public outrage. Protest, by itself, is not a threat. It is a sign that something deeper needs attention.

We’ve seen this before. When Black and Brown communities raise their voices for justice, they’re often met with force instead of listening. Protest gets redefined as chaos or disorder. Surveillance replaces engagement. Ultimately, it costs us our rights, our voices, and our momentum.

As Dr. King once warned, “Our lives begin to end the day we become silent about things that matter.” Silence is not an option. And protest is not the problem. It’s the first step toward the solution.

The racial wealth gap in America is a persistent issue rooted in centuries of systemic inequities. Despite their mission to drive economic justice, Black-led Community Development Financial Institutions (CDFIs) face significant challenges in accessing capital compared to their White-led counterparts. 
 
Our new research paper, Analyzing the Wealth Gap: Black-led vs. White-led CDFIs and the Role of Federal Programs, by Nucdalie Cherident and Ryan Gremillion, explores these disparities and their impact on the African American community. 
In this paper, we: 

• Examine historical funding inequities in federal programs like the CDFI Fund, NMTC, and SDL. 
• Highlight the disproportionate challenges faced by Black-led CDFIs. 
• Offer actionable policy recommendations to promote equity and sustainable development.

We invite you to read and engage with this pivotal report. Your insights and discussions will undoubtedly enrich our collective understanding and drive forward the essential work of advancing equity and inclusion.

New Business Development Hub Set to Transform Access to Capital for Underserved Communities in Maryland 

In a powerful collaboration that has come full circle, members of the African American Alliance of CDFI CEOs (The Alliance): Watchen Bruce, President and CEO of Baltimore Community Lending (BCL), and Maurice Ames, Executive Director of Maryland Capital Enterprises (MCE), have joined forces to better serve underserved populations in Baltimore and beyond. What started as a mutual commitment to community service years ago has now grown into a formal partnership, uniting their expertise, resources, and passion for uplifting minority and low-income communities. 

The origins of the partnership between Community Development Financial Institution (CDFI) leaders Bruce and Ames trace back over a decade. Both have worked tirelessly to offer financial resources and technical assistance to minority communities in Baltimore. Ames, who has been a long-time advocate of BCL’s mission, sits on the Small Business Loan Committee and plays an integral role in decision-making for small business loans. Similarly, BCL’s director of small business sits on Ames’ loan committee, reinforcing the synergy between their organizations. 

“Our partnership is collaborative. We see it as serving the community for the common good, not as competition,” Bruce explained. “Maurice and his team often refer clients to us for larger loans, and we do the same when clients need services his organization can provide. It’s about working together to fill gaps in the community.” 

Filling Gaps and Expanding Lending Opportunities 

The collaboration between Bruce and Ames extends beyond shared loan committees. Together, they aim to address the critical issue of underserved populations’ access to capital. Traditional banks often leave these individuals and businesses behind due to strict lending requirements. BCL and MCE’s flexible lending products and technical assistance programs stand in stark contrast to traditional banking services. 

“Our goal is to meet people where they are and provide access to capital and business development services,” Bruce said. “For instance, we don’t require collateral for many of our loans, which can be a major obstacle for those who have the cash flow but lack the assets to back a loan.” 

Ames echoed this sentiment, emphasizing that their joint efforts allow them to provide larger loans and more comprehensive services. “We can now collaborate to structure deals that work for clients. For larger loans, BCL and MCE can each take 50% of the loan, keeping everything in-house and making the process smoother for our clients.” 

A New Facility: Expanding Services and Collaboration in 2025 

One of the most exciting developments in the partnership is the upcoming expansion of services through a new Business Development and Resource Center. Set to open in 2025, this state-of-the-art facility will serve as a vital hub for economic empowerment, providing essential resources and support to small businesses and community members in low-income neighborhoods. By offering training rooms, co-working spaces, and offices for nonprofit organizations and small businesses, BCL plans to deliver comprehensive services that address the specific needs of the community, thereby enhancing economic opportunities and contributing to the overall revitalization of the area. 

“It’s a vision we’ve had for some time, and now, with our partnership, we can offer even more to our clients,” said Bruce. 

MCE will also be moving into this new facility, creating even greater proximity between their teams and enabling seamless collaboration. This move represents a significant milestone for both organizations. 

Bruce and Ames emphasized that their partnership is built on a shared commitment to community upliftment. They measure their success not only by the loans they provide but by their clients’ ability to eventually qualify for traditional banking services. 

“Our clients don’t just need a loan—they need a relationship. They need someone to guide them through the process,” said Ames. “And even when they become bankable, many choose to stay with us because of the personal connection we’ve built.” 

As they look toward the future, Bruce and Ames continue to expand their efforts, offering training and technical assistance to ensure clients are prepared for long-term success. The opening of the new facility will not only solidify their partnership but also allow them to scale their services to meet the growing needs of the community. 

Bruce and Ames’ partnership is a shining example of how collaboration can lead to transformative change. By combining resources, expertise, and a shared vision, they are ensuring that underserved communities have the tools and support they need to thrive.  

Bruce also highlighted the critical role The Alliance has played in supporting both organizations. “My membership in the Alliance has been incredibly valuable because of the many resources it offers to me and my organization. One example is the peer-to-peer networking opportunities we have as members. As a board member of The Alliance, I look forward to continuing to work closely with my partner Maurice and am encouraging others to get more involved in the activities of The Alliance.” 

Maurice Ames echoed Bruce’s sentiments, adding, “My Alliance membership is valuable because of the unlimited resources available to both me and my organization. The activities offered by the Alliance are exactly what Black-led leaders need to ensure we can continue to provide the necessary tools and guidance in our Black communities.” 

Their words underscore how partnerships like theirs, supported by the broader CDFI ecosystem and The Alliance, are helping to bridge critical gaps in underserved communities, ensuring lasting change and equitable access to resources. 

The Alliance looks forward to continuing its support for both BCL and MCE, as they work toward the grand opening of their Business Development and Resource Center in 2025. This new hub represents the next phase of their journey, offering transformation for small businesses across Baltimore and soon, Maryland at large. 

“We see this as just the beginning,” Bruce concluded. “Our new facility will allow us to serve even more people and expand our impact statewide. We’re excited about what the future holds.” 

This edition of our annual report is dedicated to the memory of our beloved friend and esteemed colleague, Inez Long. As the President and CEO of the Black Business Investment Fund Florida, and a co-founder and cherished Board member of The Alliance, Inez devoted her life to uplifting Black and minority communities through economic empowerment and relentless support for minority-owned businesses. Her unwavering commitment to CDFIs, particularly those led by Black leaders, has left an enduring impact on our community. Under her guidance at BBIF, she expanded access to capital, opened doors for countless entrepreneurs, and spearheaded transformative initiatives like the establishment of a Community Development Corporation and the successful raising of funds through the New Markets Tax Credits program. Her contributions continue to resonate in the communities we serve.

I am delighted to share with you our 2023 Impact Report, Rising Together: A Year of Growth and Collaboration. I take pride in reflecting on the advancements we’ve achieved in our mission to close the racial wealth gap and fight for economic justice for Black-led CDFIs and the communities they serve.
 
Our mission at The Alliance is clear: to empower Black-led CDFIs by increasing their access to capital and providing them with the tools they need to succeed. In turn, these CDFIs are empowering their communities, fueling wealth generation, and driving economic stability. In turn, our member CDFIs furnish their communities with essential resources to foster wealth generation and attain economic stability. Over the past year, our strides have been substantial. We’ve raised over $17.5M in support of the Black Renaissance Fund and opened the application portal. Alliance members can now apply for capacity-building grants and below-market patient debt. We launched the African American Equity Impact Scorecard which drove positive social and economic impact in the communities its users serve.
 
Our capacity-building programs have flourished. The Women-Led Initiative saw a remarkable 52% growth in membership, with $445,000 awarded in grants through this program. We’ve also strengthened our advocacy efforts, working closely with policymakers at both the state and federal levels to champion policies that uplift Black communities and work towards closing the racial wealth gap. In 2023, we placed a special focus on climate and environmental justice, establishing the Community Builders of Color Coalition (CBCC)—a coalition of 18 national BIPOC-led financial institutions and advocacy groups. Today, the CBCC leads the Justice Climate Fund, a nonprofit dedicated to ensuring that low-income and marginalized communities have equitable access to the benefits of the Greenhouse Gas Reduction Fund.
 
Within this impact report, you’ll find comprehensive insights into our programs, accomplishments, and future plans. We extend an invitation for you to join us in this mission as we strive for another year of growth and continued collaboration and a more equitable future for all.

Be Steadfast!
Lenwood V. Long, Sr.
CEO  

Today’s Supreme Court ruling in favor of the Consumer Financial Protection Bureau (CFPB) marks a crucial milestone for racial and economic equity in the United States. The CFPB’s fundamental mission is to protect consumers from unfair, deceptive, and abusive financial practices, and today’s decision ensures the agency can continue this essential work unimpeded.

This ruling is particularly significant for communities of color, which have historically borne the brunt of systemic financial discrimination and exploitation. From redlining to predatory lending, Black and Brown communities have been disproportionately affected by inequitable financial practices. The CFPB has been vital in addressing these injustices, advocating for fair treatment, and ensuring that financial institutions are held accountable.

The CFPB’s role extends beyond mere oversight; it embodies the principle that financial justice is central to social justice. By promoting transparency and ensuring that financial products and services are fair and accessible, the CFPB helps to dismantle barriers that have long hindered economic progress in marginalized communities. This empowers marginalized communities to build wealth, secure stable housing, and invest in their futures without fear of exploitation.

The Supreme Court’s decision is a victory for all who believe in equitable financial practices and reaffirms that the fight for economic justice cannot be compromised. This decision sends a clear message that protecting the rights of consumers, especially those from historically marginalized backgrounds, is of paramount importance. By safeguarding the CFPB’s ability to operate free from political interference, the Court has ensured that this vital agency can continue to serve as a watchdog for the public interest.

Today’s decision marks a significant step for advocates of fair financial practices and equal opportunity. It reinforces the CFPB’s mandate to champion a financial system that is inclusive and equitable, benefiting all Americans rather than a select privileged few. This ruling stands as a profound affirmation of justice, equity, and the enduring promise of equal protection under the law, embodying the spirit of progress and reform.

Be Steadfast!

Lenwood V. Long, Sr.

CEO, African American Alliance of CDFI CEOs

FY 2024 CDFI Bond Guarantee Program Application Period Now Open 

Attention, community development financial institutions (CDFIs) and stakeholders!  

 
The fiscal year (FY) 2024 application period for the CDFI Bond Guarantee Program is officially open. With up to $500 million in bond guarantee authority available for Eligible Community Development Financial Institutions (Eligible CDFIs), this opportunity promises significant potential for advancing community development initiatives across the nation. 

Through the CDFI Bond Guarantee Program, selected Certified CDFIs or their designees issue bonds that are guaranteed by the Secretary of the Treasury. These bonds’ proceeds are then utilized to extend credit to CDFIs for community development financing and long-term community investments. The impact of these investments spans various financial activities, including supporting commercial facilities, affordable housing projects, businesses owned by low-income individuals, and community or economic development initiatives in underserved rural areas. 

Notably, bond guarantees start at a minimum of $100 million each, with multiple Eligible CDFIs having the option to partake in a single $100 million guarantee. Each participating CDFI must contribute a minimum of $10 million. 

For those eager to seize this opportunity, application materials are already available on the CDFI Fund’s website  under the ‘How To Apply’ section. The deadline for Qualified Issuer Applications is 11:59 p.m. EST on April 16, 2024, while Guarantee Applications must be submitted by 11:59 p.m. EST on April 23, 2024. The CDFI Fund welcomes inquiries until April 9, 2024, at 11:59 p.m. ET, with all questions directed to [email protected]. 

In addition, the CDFI Fund will host a comprehensive webinar: 

	Date and Time	Conference Line	Access Link
Application Webinar  with Q&A	March 6, 2024  1:00-5:00 PM EST	Call:  1-888-790-1954   Passcode: 1780535	Access Webinar   Conference Number: PWXW3338288   Passcode: 1780535

For more details and access to application materials, visit www.cdfifund.gov/bond. 

At this critical moment in our history, the significance of Diversity, Equity, and Inclusion (DEI) in shaping our nation’s future is undeniable. The stakes couldn’t be higher, and the need for a passionate, informed, and vigorous defense of DEI has never been more urgent.

We are witnessing a concerted effort to undermine DEI initiatives across various sectors, including education and the workplace. A report by HRD Connect from December 2023 highlights the backlash against DEI policies becoming increasingly evident. Major US companies like JPMorgan Chase and others have modified their DEI policies in response to legal threats from conservative groups. These groups challenge policies that aim to boost racial and ethnic representation, pushing companies to remove specific references to racial groups or numerical diversity targets. High-profile figures have publicly criticized DEI initiatives, arguing that they replace one form of discrimination with another. This sentiment has gained traction in the legal sphere too, with the United States Supreme Court striking down affirmative action in higher education in 2023. The number of DEI proposals has decreased, and the average support for these proposals has also diminished, reflecting a general decline in support for social shareholder proposals​​.

The attack on DEI is not limited to the corporate world. In higher education, a New York Times investigation revealed a campaign by conservative academics and politicians to undermine efforts to increase racial diversity in American universities. This campaign was initially focused on institutions like Texas A&M University and included legislative actions in more than 20 states against DEI​​.

Despite facing significant challenges, the defense of Diversity, Equity, and Inclusion (DEI) initiatives is crucial for fostering a fair and just society. DEI aims to create an equal playing field in a diverse yet systematically uneven society by embracing a wide range of identities and perspectives. The core of DEI lies in promoting unity through diversity, offering fair access, opportunity, and advancement to everyone, regardless of their background or beliefs. This approach is not about creating winners and losers but is a collective effort toward a more inclusive, equitable, and dynamic society.

The attacks on DEI programs, whether in corporate America, higher education, or broader society, are more than just ideological skirmishes. They are direct assaults on the principles of fairness, equality, and the rich diversity that strengthens our nation. The statistics, the trends, the legal battles, all point to a concerted effort to roll back the gains made in DEI. Yet, in the face of these challenges, our resolve must be stronger, our voices louder, and our actions more decisive. In the words of the late Congressman and civil rights icon John Lewis, “Do not get lost in a sea of despair. Be hopeful, be optimistic. Our struggle is not the struggle of a day, a week, a month, or a year, it is the struggle of a lifetime. Never, ever be afraid to make some noise and get in good trouble, necessary trouble.” This quote encapsulates the essence of our mission in defending and advancing DEI. It’s a reminder that the path to change is often fraught with challenges, but it is through persistence, courage, and an unwavering commitment to our ideals that we can achieve lasting progress.

Now is the time to reaffirm our commitment to DEI. We must continue to educate, advocate, and innovate, ensuring that DEI remains at the forefront of our national consciousness. We must challenge misinformation with facts, confront fear with hope, and replace division with unity. We must build alliances, foster dialogue, and create spaces where diverse voices are heard and valued. This is not just the work of a day, a month, or even a year; it is the ongoing work of a generation.

Let us move forward with the knowledge that our diversity is our strength, our commitment to equity is our moral compass, and our pursuit of inclusion is the hallmark of a just society. In doing so, we honor those who have fought before us and pave the way for those who will follow. The fight for DEI is the fight for the soul of our nation, and it is a fight we must win. Together, let’s make some noise, get in good trouble, and shape a future where DEI is not just a goal, but a reality for all.

The Fight for Financial Justice: The CFPB, the Supreme Court, and Black America’s Future

When the financial storm of 2007-2008 hit, it was not just a Wall Street crisis; it was a Main Street catastrophe. And let us be clear: Black Main Street bore the brunt. The predatory lending that fueled this crisis was not just bad economics; it was a moral failing. It robbed people of their homes; it stole their dreams; it deepened the racial wealth gap. It has left scars on Black communities that still have not healed.

Remember those subprime loans? Those ticking time bombs with seductive low rates? They were not just bad deals. They were traps, often set for Black folks. Lured by the promise of homeownership, many found themselves ensnared by skyrocketing rates, leading to a spiral of debt, foreclosure, and despair.

Enter The Consumer Financial Protection Bureau (CFPB). Birthed from the Dodd-Frank Act, it was designed to be a watchdog with teeth, free from the political circus. An institution that said, “Never again.” Its mission? Simple but powerful: protect everyday folks from the financial sharks. And for Black America, this protection was not just necessary; it was a financial lifeline. Historical injustices have made Black neighborhoods prime targets for these predatory lenders. With the CFPB on the watch, however, there was hope for fairness, equity and justice.

Yet, here we stand, at a crossroads, with that lifeline under threat. The challenge to the CFPB’s funding by the 5th Circuit, now under the Supreme Court’s scrutiny, could pull the rug out from under the CFPB. Make no mistake, this is not just a legal debate. It is a battle for the soul of financial justice in America. And the implications? They are seismic, especially for Black America

1.The Domino Effect of Nullifying CFPB Rules

Imagine a world where the CFPB’s rules, painstakingly crafted to shield consumers, are suddenly in jeopardy. Over 100 rules, touching everything from mortgages to payday loans, could be on the chopping block. For Black communities, who have found solace in regulations like those against predatory payday lenders, this is a nightmare scenario. If the Supreme Court sides against the CFPB, we could be staring down a legal maze where these protections are contested, diluted, or even discarded.

2. The Ripple Effect on Black Lives

The potential unraveling of the CFPB’s rules is not just a policy issue. It is about lives. It is about Black lives. Without these shields, we risk a resurgence of the very predatory lending that once wreaked havoc on our communities. It is about Black families once again being preyed upon by unscrupulous lenders. It is about the return of the dark days of deceptive mortgages. It is about Black folks, already under the weight of aggressive debt collectors, having that weight doubled, tripled. Without the CFPB’s oversight, it could get even worse.

3.The Bigger Picture: Financial Regulation at Risk

This is not just about the CFPB. A ruling against its funding could send shockwaves across the financial regulatory landscape. Other watchdogs with similar funding structures – the Federal Reserve, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the National Credit Union Administration – could be next in line. The result? Potential chaos in our financial markets, with Black communities, often the first to bear the brunt, facing even steeper economic hurdles.

4.The Fight for Independence

The CFPB’s power lies in its independence. Free from political games, it can truly serve as a champion for the people. But if the Supreme Court challenges its foundation, we risk a future where political winds, not justice, guide our financial protections. For Black America, this could mean the erosion of hard-won protections.

***

This is not just a legal showdown; it is a moral one. The CFPB stands as a guardian for Black America against financial predators. As the Supreme Court deliberates, we must remember that this is not just about the CFPB or its funding structure. It is about the promise of a fair financial future for Black America. The stakes? They could not be higher, and the legacy of this decision will echo for generations.