The has awarded a $2 million program-related investment to , a national financial intermediary, on behalf of a consortium of five Latino-led community development financial institutions.
The low-interest loan will enable the consortium to connect its members — (San Antonio), (Philadelphia), the (Minneapolis), and (San Francisco) — with more experienced lenders through a peer-support model. The approach is designed to accelerate the development of the Latino-led CDFIs — all of which are members of the — and enable them to deploy more capital to Latino entrepreneurs who are underserved by traditional bank lenders. Surdna's investment will support lending to four hundred Latino small businesses around the country.
In addition, the foundation is providing a two-year, $300,000 grant to NALCAB to boost support for local lenders. In addition to monitoring consortium members' portfolio performance, VEDC and NALCAB will provide technical and systems-development assistance and work to leverage additional grant resources and capital to ensure the success and growth of the model.
"To accelerate the tremendous potential of Latino entrepreneurs as job creators and building blocks for increased economic activity, philanthropy can help by investing in faster, more efficient ways to deploy capital," said Surdna Foundation president Phillip Henderson. "We know that addressing access to capital helps to remove one of the most important factors limiting the success of Latino and other minority-owned businesses, and thus helps them grow and create new jobs."