LISC Raises $ 400 Million in Seed Capital for 10X Project to Address Deep Racial Disparities, Promote Growth and Opportunity
NEW YORK, May 24, 2021 / PRNewswire / – The Local Initiatives Support Society (LISC) announced today that it has raised more than $ 400 million for his 10X project initiative to close racial gaps in health, wealth and opportunity – bringing it to 40% $ 1 billion objective of the investment effort over 10 years.
LISC, one of the largest community development finance institutions (CDFIs) in the country, launched the 10X project in November 2020. The initiative builds on over 40 years of LISC’s investments in affordable housing, economic development, health, safety, education and employment, all designed to create opportunities for people and communities that have been excluded from full participation in the prosperity of the country.
LISC’s initial 10X project investments support a wide range of opportunities in Black, Indigenous and Colored (BIPOC) communities – from capital for minority-owned banks and businesses to grants for health and social programs. education to new levels of support for home ownership and family wealth creation.
“We work with public, private and non-profit partners to make investments that tackle entrenched inequalities – whether it’s ensuring that promoters led by BIPOC have better access to capital or to help black and brown families get fair equity home appraisals so they can build intergenerational wealth and invest in their communities. ”It was noted Lisa Glover, Chairman and CEO of LISC. “In this way, the 10X project adds to the work we have been doing for decades.”
LISC deploys 10X project capital in the form of equity, debt and grants specifically designed to address the drivers of the racial wealth gap and build wealth for BIPOC families, businesses and communities. Most of the capital raised to date is through LISC Black Economic Development Fund and the Emerging Minority Developer Fund, created by LISC’s National Equity Fund (NEF) subsidiary, with additional funds from grants and loans assembled as well.
“Year after year, study after study, we see data that demonstrates just how much more difficult it is for entrepreneurs of color to access the capital they need to build and grow,” noted George ashton, Managing Director of the LISC Strategic Investments group, which oversees the Black Economic Development Fund. “If we can help solve this problem with investments in flagship minority-run banks, businesses and institutions, the positive ripple effect extends to all the communities where they operate.”
The 10X project also helps address specific local challenges. In twin cities, for example, LISC works with partners Minneapolis and St. Paul to create and support the Community Assets Transition Fund, a $ 30 million fund designed to help BIPOC communities rebuild after civil unrest and losses from the pandemic of the past year. The CAT Fund helps community nonprofit organizations finance the temporary acquisition of essential properties that might otherwise be lost to outside speculators, which helps protect community property and build community wealth. It is designed to give hard-hitting businesses and landowners the opportunity to rebuild themselves and lay the groundwork for further investment in the years to come.
“That’s what LISC does – raises capital, brings together partners and supports the kind of community infrastructure that not only attracts additional economic activity, but protects the interests of longtime residents,” said Peter McLaughlin, executive director of LISC Twin Cities. “The 10X project approach leverages capital specifically for efforts to address deep disparities, so that we can invest now to protect BIPOC’s assets, while laying the groundwork for transformational growth at the to come up.
In addition to the investments, LISC is also deploying 10X Project Grants to support a range of targeted and community-based solutions and demonstrate approaches that can be replicated across the country. Some are national in scope, such as a recent multi-city program to help fund BIPOC-led non-profit organizations that empower young people, or a new partnership to connect professional athletes with opportunities for community development.
Others are designed and implemented locally. For example, in Indianapolis, LISC participates in the financing of a systemic strategy focused on access to healthy food, supporting a plan that connects urban farms, farmers’ markets and community kitchens with schools, homes and complementary services. The aim is to support both BIPOC food businesses and BIPOC residents as part of a comprehensive community-led strategy.
In Chicago, LISC supplies health and employment programs to reduce BIPOC disparities, including efforts that help prepare people to enter the workforce after a period of prison or prison.
And in Louisville, where LISC is preparing to open its first local program office in the coming months, the organization is working with partners to seed grants to black entrepreneurs and black-led nonprofits through business development organizations.
LISC continues to raise funds to support efforts like these in urban and rural communities across the country, Glover said, as he walks towards his $ 1 billion Objective of the 10X project. “We are still in the early stages of this effort and we will not give up our commitment in this regard,” she added.
To learn more about the 10X project, visit https://www.lisc.org/project-10x/. Learn more about the companies and organizations supporting the 10X project at https://www.lisc.org/project-10x/supporters/.
With residents and partners, LISC forges communities of resilient and inclusive opportunity across America – great places to live, work, visit, do business, and raise families. Since 1979, LISC has invested $ 24 billion to build or rehabilitate more than 436,320 affordable homes and apartments and develop 74.4 million square feet of commercial, community and educational space. To learn more, visit www.lisc.org.
Colleen Mulcahy, for LISC
SOURCE Local Initiatives Support Company (LISC)