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September 20, 2022

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BofA funding will help financially marginalized communities

The National Alliance of Latino CDFI Executives (NALCE), an initiative of the National Association for Latino Community Asset Builders, and the African American Alliance of CDFI CEOs (The Alliance) will receive $25 million in total funding from Bank of America to support minority-led CDFIs in their networks. Both alliances represent over 130 Community Development Financial Institutions (CDFIs) led by people of color that possess the cultural competency to specifically serve Latino and African American communities.

Compared to minority-led CDFIs, white-led CDFIs have a median asset size 2.5 times larger, according to a HOPE Policy Institute study of CDFI Fund activity over a 15-year period.  This is an example of how even the very institutions that have been erected to eliminate racial and ethnic disparities can sometimes mirror the biases that exist in society.

NALCE and The Alliance will use this investment to grow the capacity of their member CDFIs. CDFIs are locally-based institutions that best know the issues faced by their low- and moderate-income minority communities and can bring to bear the cultural and linguistic skills to serve them. As a result, NALCE and The Alliance members are uniquely positioned to offer low-cost loans, access to capital and financial counseling services to individuals and businesses nationwide.

“This example of Black and Latino alliances working collaboratively will serve as a model for other coalitions to effectively reach diverse communities of color,” said Marla Bilonick, President & CEO of NALCAB and NALCE Chair. “CDFIs are one of the most impactful vehicles for equitable economic investment in traditionally underinvested communities, yet the very CDFIs that are most qualified to serve OUR communities struggle to be equitably capitalized.  This collaboration demonstrates that opportunities and impact are literally doubled when we work together.”

“We are thrilled to partner with NALCAB for this announcement as we further build our partnership. This is a historic investment from Bank of America that recognizes the importance of minority-led CDFIs and advances economic empowerment in their communities,” said Lenwood V. Long, Sr, President & CEO of The Alliance. “Having the opportunity to be part of this coalition and investment fuels our movement's capacity and promises a path to larger future investments in developing the pipeline of Latino and African American-Led CDFIs.” 

Bank of America is the largest private investor in CDFIs in the United States, with more than $2 billion in loans and investments currently disbursed in more than 250 CDFIs in all 50 states and Washington, D.C. “We are working across our company to address important societal priorities, including racial equality and economic opportunity,” said Dan Letendre, CDFI Executive at Bank of America. “NALCAB and The Alliance member CDFIs are uniquely positioned to understand the issues faced by their communities and bring to bear the necessary financial and cultural skills to serve them.”

NALCE

The National Alliance of Latino CDFI Executives (NALCE) is a newly formed initiative that unites and amplifies the voices of Latino-led Community Development Financial Institutions (CDFIs) to drive capital to underserved Latino communities. We are a diverse nonprofit network of over 70 Latino CDFI executives dedicated to advancing economic and social justice in Latino communities across the US by increasing access to affordable loan products, preserving and advancing neighborhood economic power and promoting generational wealth-building. NALCE is presented by the National Association for Latino Community Asset Builders (NALCAB).

The African American Alliance of CDFI CEOs

The African American Alliance of CDFI CEOs (The Alliance) is a coalition of 64 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.

Bank of America Environmental Social and Governance

At Bank of America (NYSE: BAC), we’re guided by a common purpose to help make financial lives better, through the power of every connection. We’re delivering on this through responsible growth with a focus on our environmental, social and governance (ESG) leadership. ESG is embedded across our eight lines of business and reflects how we help fuel the global economy, build trust and credibility, and represent a company that people want to work for, invest in and do business with. It’s demonstrated in the inclusive and supportive workplace we create for our employees, the responsible products and services we offer our clients, and the impact we make around the world in helping local economies thrive. An important part of this work is forming strong partnerships with nonprofits and advocacy groups, such as community, consumer and environmental organizations, to bring together our collective networks and expertise to achieve greater impact. Learn more at about.bankofamerica.com, and connect with us on Twitter (@BofA_News).

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