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Dear fellow entrepreneurs and allies,
We are dedicating this newsletter to the topic of Capital. To put it simply, the Foundation for Business Equity (FBE) is doing everything it can to provide greater access to capital for those business owners with less options.
I am proud to share that FBE and Mill Cities Communities Investments (MCCI) entered into a management services agreement. I humbly assumed the role of MCCI CEO in addition to my role as FBE Executive Director. This is an incredible opportunity to combine our organizations’ strengths to better serve our businesses, enriching our capital and advisory services.
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MCCI is a leading community development financial institution (CDFI) (see below) committed to bridging the gap in lending in low-to-moderate income communities. FBE has worked closely with MCCI to secure flexible loans for BEI businesses. This stronger partnership with MCCI allows us to attract additional grants and new low-interest loan capital to our enterprises, including federal and state support for CDFIs related to COVID-19 recovery. This new partnership also strengthens our relationship with the Business Equity Fund (BEF) at the Boston Foundation, as it continues to provide support to MCCI and additional flexible financing to BEI participating enterprises.
Traditional financial institutions have not been as accessible to the Black and Latinx businesses we support. In many ways, we have had to creatively innovate how financing decisions are mandated and dismantle exclusionary paradigms. We are confident that our strengthened relationship with MCCI, along with financial support from existing and new funders, will help us increase the flow of accessible and affordable capital to Black and Latinx businesses across the region.
In struggle,
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Glynn Lloyd
Executive Director
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What are Community Development Financial Institutions? |
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Mill Cities Communities Investments |
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We are thrilled to formalize our relationship with MCCI, a community development financial institution (CDFI). The CDFI concept is part of a rich history of self-help credit. The current CDFI industry can be traced to the 1970s, as activists moved to counter banks' redlining practices and re-direct capital back into urban areas by forming community-controlled banks. Today, CDFIs are institutions that provide financial services to underserved communities and are certified and funded in part by the CDFI Fund at the U.S. Treasury. |
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FBE has helped direct $29M into our Business Equity Initiative (BEI) and Business Equity COVID-19 Emergency Fund (BECEF) businesses. FBE has been instrumental in leading the architecture of new coalitions that were established during the pandemic to advocate and obtain additional relief financing.
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"Our job is to identify the gaps and cultivate the needed solutions." Glynn Lloyd, FBE Executive Director |
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Funding provided to BEI and BECEF businesses |
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FBE's Collaborative Approach in Action
FBE brings the right institutions together to break down barriers and accelerate support for Black and Latinx businesses. For example, last Fall, we were approached by Massachusetts Housing Investment Corporation (MHIC) and Eastern Bank to identify impacted businesses that could qualify for the Federal Home Loan Bank (FHLB) of Boston’s Jobs for New England Recovery Grant Program.
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Through this grant program, $155,000 in grants were distributed by MHIC and Eastern Bank to businesses of color. |
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“We were pleased to be able to deploy these relief funds to businesses most impacted in our communities. Our collaboration with FBE allowed us to quickly identify eligible Black and Latinx small businesses for the short application deadline.”
Bruce Ehrlich
Senior Investment Officer at MHIC
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Founding Member of the Coalition for an Equitable Economy |
FBE is proud to be a founding member of the Coalition for an Equitable Economy (CEE), which is comprised of 14 small business support organizations that came together during the pandemic to focus on closing racial inequities in the small-business sector.
Review the new MassINC report that the CEE released, Unleashing the Potential of Entrepreneurs of Colors in Massachusetts, which challenges us to close racial and ethnic gaps in business ownership by the end of the decade, laying out a near-term policy blueprint for this work. In addition, the CEE's new website highlights the impact of its collective work over the last year.
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THANK YOU TO OUR NEW FUNDERS
As a community non-profit, FBE is actively fundraising to achieve our vision. Our vision is big, and we are pleased to announce two new funders. We thank Bain Capital and The Rockefeller Foundation for their support and partnership to advance our work.
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Rockefeller Case Study: "Here's Why Mentorship Can Help Close the Racial Wealth Gap" |
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Juan Yepez, CEO and Luis Yepez, COO Mainstream Global, Inc. |
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We are pleased to share this article from Rockefeller’s Matter of Impact Newsletter featuring BEI graduate Mainstream Global, Inc 's Juan Yepez, CEO, Luis Yepez, COO, and their Strategic Advisor, Michael Hicks.
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“Mentoring is critical for Black- and Latinx-founders, who face unique barriers in accessing capital or credit to start, grow, and sustain a business.”
Gregory Johnson
Managing Director of The Rockefeller Foundation’s
U.S. Equity and Economic Opportunity Initiative
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BEI ACCEPTING APPLICATIONS FROM BUSINESSES |
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The Business Equity Initiative (BEI) is now accepting applications for the next cohort of participating businesses. Business owners work with a dedicated team of advisors for 9 months to create and implement a customized growth plan to meet goals and needs.
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Eligibility Criteria:
- Minimum of $500K in annual sales
- Located in Eastern MA, Southern NH, or Northern RI
- Black or Latinx majority owned and led for-profit business
- Committed company leadership, receptive to coaching and guidance
- Solid business model with distinct product/service/market and growth potential
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NBC Boston, This Is New England Segment, featuring Glynn Lloyd, Executive Director of FBE, Cassandria Campbell, Co-Owner of Fresh Food Generation, and Saron Tesfalul, Principal of Bain Capital. |
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Share the BEI program with others here: |
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