Inclusiv announces new investors in Southern Equity Fund and begins making loans
Fund makes first loan to Freedom First Federal Credit Union to expand affordable housing
Inclusiv today announced the addition of four new investors to its Inclusiv Southern Equity Fund, including Bank of America, MetLife, National Cooperative Bank and Prudential Financial, Inc., expanding Inclusiv and its member credit unions’ ability to impact low-income communities and communities of color. The Inclusiv Southern Equity Fund, launched in September 2019 with support from the Kresge Foundation, promotes economic mobility among low-wealth communities in 17 southern states with high concentrations of persistent racial wealth inequality and poverty.
“Inclusiv is delighted to be joined by Bank of America, MetLife, National Cooperative Bank and Prudential as investors in the Southern Equity Fund. With the support of our investors, the Fund is creating access to safe and affordable financial products and services – that should be the right of all people – to some of the most economically insecure communities in the U.S.,” said Cathie Mahon, President and CEO of Inclusiv. “Inclusiv is acting quickly to make investments into our member credit unions, and is pleased to announce the first loan for $5 million to Freedom First Federal Credit Union.”
Freedom First Federal Credit Union, an Inclusiv member based in Roanoke, VA, has received the Southern Equity Fund’s first $5 million secondary capital investment to help fund Freedom First’s Affordable Housing Program. This program works with potential homebuyers of modest means who might otherwise not have qualified for a mortgage become a homeowner, and is part of Freedom First’s Impact Banking suite of products and services.
“We are thankful for organizations like Inclusiv who are dedicated to creating lasting change by investing in local community development credit unions,” says Freedom First President and CEO Paul Phillips. “With funding from organizations like Inclusiv, we are able to help more hardworking people overcome barriers and realize the dream of homeownership.”
Inclusiv’s investment arm, Inclusiv/Capital, formerly the Community Development Investment Program, is one of the first lenders of secondary capital and is the only national lender of secondary capital. Established in 1982, Inclusiv/Capital has invested over $180 million in community development credit unions (CDCUs). Inclusiv’s Secondary Capital loans have been a catalyst for the double bottom line growth for 81 CDCUs over 22 years. Recipient credit unions hold $16.6 billion in community controlled assets, and have originated $6.7 billion in consumer loans that average $2,800.
Credit unions interested in learning more about the Inclusiv Southern Equity Fund should contact Cathi Kim, Director, Inclusiv/Capital, at capital@inclusiv.org.
About the Inclusiv Southern Equity Fund
The Inclusiv Southern Equity Fund is a $45 million fund that invests capital in credit unions serving low-income communities and communities of color in 17 southern states, including Alabama, Arkansas, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, Missouri, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia and West Virginia. The Fund, launched in 2019, promotes economic mobility among low-wealth and underserved communities, preserves and builds diversity in community-owned and controlled financial services, and increases the impact of credit unions throughout the American South. The Fund makes investments of up to $5 million in secondary capital loans to high-impact community development credit union (CDCUs). The Kresge Foundation, a private, national foundation that builds and strengthens pathways to opportunity for low-income people in America’s cities, has joined Inclusiv as a limited partner of the Fund by providing a $5 million equity investment as a credit enhancement for social impact investors. Additional investors include Bank of America, MetLife, National Cooperative Bank and Prudential Financial, Inc. For more information, please visit inclusiv.org/investing/southern-equity-fund.
