LISC’s Black Economic Development Fund Invests $122 Million to Support Growth of Black-Owned Banks and Businesses

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NEW YORK, March 17, 2022 /PRNewswire/ — The Local Initiatives Support Corporation (LISC) today announced that its Black Economic Development Fund (BEDF) has committed nearly half of its capital, after closing the $122 million in investments for black-owned banks and businesses across the country.

the $250 million The fund includes investments from Netflix, Paypal, Square, HubSpot, Aflac, Costco, Dicks Sporting Goods, ThermoFisher Scientific, Wayfair, McKinsey & Company and Dupont. It aligns with LISC’s larger Project 10X strategy to break down systemic racial barriers, including $1 billion in investments that support small businesses, community non-profit organizations, mission-driven lenders, anchor institutions, and innovative urban and rural initiatives.

“Over the past two years, there has been a lot of public debate about how best to support the advancement of racial equity,” said George Ashton, chairman of LISC Fund Management, which is BEDF’s fund manager. “This fund is a powerful social investment model that helps businesses leverage their Treasury dollars to fuel revenue and job growth for Black-owned businesses, so they can deepen their impact on the communities in which they operate.”

The BEDF is designed to address the unique financing challenges faced by black businesses, which have historically had more limited access to capital than white-owned businesses. To date, the fund has provided financing to real estate developers, high-impact community development projects and mission-driven lenders in 15 cities.

In Clevelandthe BEDF made almost $1.7 million ready to complete the conversion of two Victorian style houses and a carriage house into 19 studio and one bedroom apartments. The buildings are located near the Cleveland Clinic and Case Western University, providing much-needed quality accommodation for students and professionals at below-market rates. The project is carried by Brian HallCEO of JIT Services and Senior Vice President and Executive Director of Equity and Inclusion at the Greater Cleveland Partnership, owning the properties since 1986.

In Chicagothe BEDF made a $2.5 million mezzanine loan to help preserve and improve a 141-unit affordable housing development in the neighborhood roseland neighborhood, a predominantly black community where property values ​​have risen in recent years and threaten to displace longtime residents. The effort is led by a black-owned development company, The Confluent Group, led by CEO David Bigand co-sponsored by a former NBA player Luol Dengwho is active in local philanthropy after spending most of his career with the Chicago Bulls.

In Orlandothe BEDF made a $5.75 million construction loan to enable the development of affordable housing for sale in the historically black community of West Lakes. Led by Hannibal Square Community Land Trust, the project provides new affordable pathways to home ownership, creating opportunities for residents to build equity and generational wealth.

Among the black banks supported in recent months, the BEDF made a $3 million deposit at Unity National Bank in Houstonthe only bank owned by blacks Texasand one $5 million deposit at Carver Federal Savings Bank at new Yorka Community Development Financial Institution (CDFI) focused on providing access to capital to historically underserved communities, with an emphasis on Minority and Women’s Enterprises (MWBE).

BEDF expects to close the rest of its investments by the end of the year. To learn more about the fund or its local investments, visit https://www.liscstrategicinvestments.org/black-economic-development-fund.

About LISC

LISC is one of the nation’s largest community development organizations, helping to forge vibrant, resilient communities across America. We work with residents and partners to close systemic gaps in health, wealth and opportunity and advance racial equity so people and places can thrive. Since our creation in 1979, LISC has invested $24 billion to create more than 436,320 affordable homes and apartments and develop 74.4 million square feet of commercial, community and educational space. LISC Strategic Investments is LISC’s national fund management team, developing pooled investment vehicles and deploying capital on behalf of investors through LISC’s registered investment adviser, LISC Fund Management, LLC. To learn more, visit www.lisc.org or http://www.liscstrategicinvestments.org.

About the Black Economic Development Fund

The Black Economic Development Fund (BEDF) is an impact investment fund designed to address the economic challenges of Black communities and to help close the racial wealth gap. The fund targets Black-led financial institutions, businesses, real estate developers and anchor institutions with the goal of growing these organizations and enhancing their contributions to Black communities. The fund deploys capital across a diverse set of industries, borrowers and geographies in United States. The BEDF is managed by the Strategic Investments team of the Local Initiatives Support Corporation (LISC) and LISC Fund Management, LLC, a subsidiary of LISC. For more information on the BEDF, please visit https://www.liscstrategicinvestments.org//black-economic-development-fund.

SOURCE Local Initiatives Support Society (LISC)

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