Umpqua Bank Partners with LISC to Expand Affordable Homeownership Programs in West Coast Communities2/17/2023 Umpqua Bank and the Local Initiatives Support Corporation (LISC) are partnering to expand homeownership for communities of color and rural communities on the West Coast through locally-driven strategies that break down financing barriers and fuel wealth-building.
Through the Umpqua Bank Charitable Foundation, Umpqua is contributing $500,000 in targeted capacity-building support noteworthy for the way it prioritizes local strategies that creatively address the homeownership challenges of specific low-to-moderate income communities across Oregon, Washington, and California. Beneficiaries will include a diverse array of communities facing barriers to ownership, including people of color and, in rural areas, people employed in the agricultural sector, whose housing costs outmatch wages. According to LISC President Denise Scott, Umpqua's support will help LISC and its partners develop customized solutions to reduce disparities and expand fair access to quality homes – and to share learnings across the national LISC network. “This kind of capacity building support is like oxygen for nonprofits, and we are so grateful to Umpqua for recognizing the value of flexible funding for racial equity in homeownership,” said Scott. “For LISC, this allows us to work with local partners to prove and scale approaches, and then take the lessons learned to other communities, where local leaders can replicate the impact. Essentially, Umpqua is multiplying the effect of its funding and will reach people and places well beyond its initial investment thanks to the resources it will leverage from like-minded partners.” In Washington’s Puget Sound region, for example, Umpqua’s funding will fuel LISC’s work with the City of Seattle and the Black Home Initiative to design and manage predevelopment funds that can help new construction of affordable homes. In California, the funding will help expand the highly successful San Diego Black Homebuyers Program and build the capacity of community land trusts in the San Francisco Bay Area, where they can also be leveraged to address foreclosure issues. Additionally, Umpqua’s partnership will help LISC deliver intensive technical assistance to rural partners working to make homeownership more accessible in Oregon, California, and Washington, with particular attention to the housing needs of agricultural workers. “LISC is one of the foremost leaders in helping expand access to affordable home ownership in BIPOC communities across the U.S., and Umpqua is thrilled to become one of its strategic partners on the West Coast,” said Randy Choy, VP of Community Giving and Nonprofit Partnerships and Managing Director of the Umpqua Bank Charitable Foundation. “Our initial commitment is structured to unlock LISC’s financial and resource capacity in our communities where LISC expertise and services for under-resourced communities of color are needed most.” The grant, which aligns with LISC's Project 10X racial equity initiative, will fuel efforts including homebuyer down-payment assistance, the growth of community land trusts in places where traditional homeownership is out of reach, and help reinforce LISC’s thought-leadership on pathways to equitable homeownership.
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Umpqua Bank, a subsidiary of Umpqua Holdings Corporation announced that its innovative crowdfunding partnership with Kiva has reached the initial goal of deploying $1 million in microloans. Since April, the Umpqua Bank Loan Fund has supported nearly 200 BIPOC and women entrepreneurs, addressing a critical gap in access to funding for many small business owners.
Umpqua established its $1 million loan fund with Kiva earlier this year as part of its Small Business Empowerment Program to accelerate the ability of underserved entrepreneurs to access microloans offering 0% interest. Umpqua's loan fund matched contributions from thousands of individual funders 3:1 for eligible entrepreneurs in Oregon, Washington, California, and Idaho. "Creative partnerships with organizations like Kiva are critical to expanding the funding ecosystem for small businesses so more entrepreneurs can access the capital and resources needed to succeed," said Eve Callahan, Umpqua's chief marketing communications officer. "In just a few months, our Umpqua Bank Loan Fund through Kiva has helped nearly 200 under-resourced entrepreneurs access early-stage capital that's so important in starting and growing a small business." "We join the team at Umpqua in celebrating this incredible milestone, which we achieved far more quickly than we'd initially expected," said Tess Murphy, Director of Strategic Partnerships at Kiva. "It's innovative partnerships like these that enable Kiva to continue growing our impact, allowing us to reach even more entrepreneurs with critical access to funding. We're grateful to work with Umpqua to address the funding gaps for small business owners." The Fund in Action To date, 185 business owners have been supported through the fund, which matched loans crowdfunded by more than 10,200 people across the globe. The businesses supported by Umpqua-matched loans represent a range of sectors including the service industry, food, retail, health, agriculture, education, arts and entertainment, and more. The average loan amount across all borrowers so far has been $8,300. The Umpqua Bank Loan Fund replenishes as loans are repaid, multiplying the bank's initial $1 million commitment. Of the 185 businesses supported through the Umpqua Bank Loan Fund: 60% were directed to women business owners 42% were directed to Black and African American business owners 22% were directed to Latine and Hispanic business owners 32% have been in operation for three years or more 26% have been in operation for one year Businesses supported by Umpqua and Kiva partnership A representation of the businesses supported by the Umpqua Bank Loan Fund include: Sibeiho, based in Portland, OR, a Singaporean food startup co-founded by Holly Ong and Pat Lau In Focus Productions, based in Lakewood, WA, a Veteran and Black-owned photo and videography production company founded by Darwin Peters and Shartrice Peters Serenity Valley Flower Farm, based in Gig Harbor, WA, a black woman-owned and operated sustainable floral microfarm founded by Susanne Bell Blynd Essence, Inc, based in Fresno, CA, which provides affordable shared housing for individuals with mental illness and financial hardship, founded by Rizpah Bellard Umi Organic, based in Portland, OR, which produces delicious Japanese food products through organic farming methods, founded by Lola Milholland How Kiva works Through Kiva, anyone can help support and grow small businesses and promote local job creation by visiting Kiva.org and choosing an entrepreneur they want to support with a loan of $25 or more. Entrepreneurs apply directly to Kiva's U.S. site to fundraise on the platform and are connected to millions of Kiva lenders. It also enables local lenders to make direct loans to entrepreneurs in their neighborhoods. Small business loans crowdfunded through Kiva U.S. are offered at 0% interest with no fees and available to borrowers who may be rejected or underserved by traditional lenders. Minority entrepreneurs in the Portland metro area and other parts of Oregon and SW Washington have received a huge boost. At a press conference in April, KeyBank announced a $150,000 commitment to support the nonprofit Micro Enterprise Services of Oregon (MESO).
The funds will be delivered during the next two years. The $150,000 will enable MESO to expand its technical assistance and financing to unbanked, under-represented entrepreneurs – especially Black and Latino – in Portland metro, rural Oregon communities and SW Washington. The services help disadvantaged entrepreneurs start new small businesses and assist existing ones to recover from the pandemic. The new gift increases the total KeyBank has donated to MESO to $440,000 since 2016. It is the most the bank has ever given to a community organization in Oregon and SW Washington. “We love MESO and all it does to help our fellow community members succeed financially,” said Josh Lyons, KeyBank’s market president for Oregon and SW Washington and commercial banking leader. “Our mission is to help our communities thrive. Nowhere is that more important than in underserved communities that often lack access to business expertise and funding.” “This time of year typically brings May showers, but we’ll always remember this April as the month that brought a huge gift to our organization,” said Cobi Lewis, MESO executive director. “This outstanding level of support from a partner such as KeyBank will strengthen our community by helping entrepreneurs.” MESO clients will participate in classes to gain skills and knowledge to create a strong business foundation. They will also have access to market research to identify industry and market trends and be eligible for no-interest credit builder loans. “In addition, when participating entrepreneurs and their businesses are determined to be ready, they’ll receive access to affordable capital through our innovative forgivable loan program, thanks to this support from KeyBank,” Lewis added. “We are delighted to again partner with MESO to help these industrious, small-scale entrepreneurs improve their communities through business development,” Lyons said. “We’ve seen how MESO’s proven model and comprehensive services can lead to increased revenue, business retention and loan repayment.” In February, Umpqua Bank announced a new program that will expand access to capital, resources and expertise for minority and women entrepreneurs. Umpqua Bank's Small Business Empowerment Program builds on existing private and public partnerships, including strategic initiatives with numerous business-focused nonprofits and Community Development Financial Institutions (CDFIs), to advance economic equality and opportunity for entrepreneurs in historically underserved communities.
As part of the program, Umpqua has formed multi-year partnerships with four innovative organizations, each working to remove barriers to key areas of business support, including access to technology, low-cost financing and technical assistance and expertise: Oregon-based MESO (Micro Enterprise Services of Oregon); Washington-based Business Impact NW; California-based Centro Community Partners and Kiva. According to Umpqua Bank chief marketing communications officer Eve Callahan, the program and newly formed partnerships address an opportunity gap in equitable access to funding and expertise essential to the viability and success of any business, especially those in communities lacking critical resources and support services. "Entrepreneurs and small business owners create incredible opportunity and prosperity in our communities, but historical barriers continue to exist that prevent many from accessing what they need for success. Partnerships that take a multi-faceted, collaborative approach to close this opportunity gap are essential to give every entrepreneur with good ideas and determination a chance to succeed," said Callahan. "We're really pleased to announce the Umpqua Bank Small Business Empowerment Program and the strategic partnerships with these terrific organizations. Together, they're advancing some of the most innovative, creative and comprehensive approaches to addressing one of the biggest obstacles to prosperity many communities face." Details of each partnership and how they will enhance access to economic opportunity are as follows: Kiva: Access to Capital. Umpqua, through the Umpqua Bank Charitable Foundation, is establishing an Umpqua Bank Managed Loan Fund, enabling women and minority entrepreneurs in Umpqua's footprint to access matched funds and obtain 0% interest, crowdfunded loans. Kiva utilizes an innovative, character-based lending approach, removing collateral and credit history barriers in gaining access to capital. Funds will revolve for three years, multiplying the investment impact of the loans. Since 2005, Kiva has been a global, transformative leader in supporting women and minority entrepreneurs with crowdfunded loans that unlock capital for the underserved, improve the cost of financial services, and address underlying barriers to financial access. Centro Community Partners: Access to Expertise and Tools. Umpqua is funding a significant expansion of Centro's tech hub and a bilingual mobile app for small businesses over the next three years. Centro's innovative, award-winning business planning app provides entrepreneurs with affordable, culturally appropriate and high-impact, enterprise-building tools. In addition, Umpqua is funding the expansion of Centro Capital Hubs in the Bay Area, connecting hundreds of entrepreneurs with 0% Umpqua Bank Managed Loan Fund loans through Kiva. In addition, Centro will also be able to enhance technical assistance capacity for local microenterprise organizations through its E-Suite platform, Learning Management System (LMS) platform, and its Centro App solutions. Centro works with entrepreneurs to help them start and grow their businesses. Micro Enterprise Services of Oregon (MESO): Geographic Expansion. Umpqua is working closely with MESO to expand services in Southern Oregon. MESO expects to open a satellite office in Jackson County with bilingual loan services and access to new microenterprise tools for a region severely impacted by both wildfires and COVID-19. MESO staff will provide one-to-one culturally specific coaching, credit-building support, technical assistance, and access to a 5:1 matched Individual Development Account (IDA). MESO elevates and empowers historically excluded entrepreneurs with tailored business assistance and flexible capital to build family wealth through business ownership. Business Impact Northwest (BINW): Financial Literacy and Loan Readiness. Recognizing the historic barriers to accessing capital and financial expertise many diverse entrepreneurs face, Umpqua is funding the launch of BINW's new, multi-lingual Loan Readiness Center to provide customized technical assistance that moves entrepreneurs from "loan-ready" to "loan-successful." In addition, BINW will introduce new culturally appropriate loan products that expand access to capital for under-resourced borrowers. BINW provides coaching, education, and access to capital for community small businesses, with an emphasis on working with traditionally underserved populations—entrepreneurial low/moderate income earners, women, BIPOC, veterans, immigrants and members of the LGBTQ+ community. The program also incorporates a range of offerings and services offered by Umpqua to support a variety of organizations committed to improving access to capital and resources. Among other features, these include: Equity-Equivalent Investments (EQ2s): specialized low-interest loans made to CDFIs to increase the level of affordable financing they can provide to small businesses. Individual Development Accounts (IDAs): uniquely designed to help low- and moderate-income individuals save for a specific purpose—such as starting a small business in their community. Bankers Hours: through in-person and virtual consultations with partner organizations Umpqua bankers provide business expertise and consulting services to entrepreneurs and small business owners, including those seeking to establish their enterprises and transition to a full banking relationship. Umpqua's Small Business Empowerment Program is just the latest Umpqua initiative to advance entrepreneurship and business ownership among minorities and women. Last month, the bank also announced an innovative private-public partnership with the State of Washington to provide $15.5 million for the newly formed Small Business Flex Fund, which offers low-cost loans and support through CDFIs for minority-owned businesses. For its focus on equitable lending through the federal Paycheck Protection Program (PPP), the U.S. Small Business Administration recently recognized Umpqua in its Equity Spotlight series for providing 30% of its 2021 PPP loans to women-owned businesses—double the national average. For more information about Umpqua Bank's community impact visit www.UmpquaBank.com/Our-Impact. KeyBank is investing $750,000 to create a new program at Case Western Reserve University (CWRU) that will help address issues on diversity, the digital workforce and more equitable neighborhoods. This transformative grant is part of KeyBank’s $40 billion National Community Benefits Plan and is symbolic of the bank’s longstanding commitment to diversity, equity and inclusion.
The KeyBank Partnership for Equity through Education and Community Impact at CWRU program will help to address issues on diversity, the digital workforce, and more equitable neighborhoods. “We are proud to partner with Case Western Reserve University as they address systemic barriers many students in Cleveland face each day,” said Timothy Burke, KeyBank Northeast Ohio Market President. “The KeyBank Partnership for Equity through Education and Community Impact is an innovative program that will provide young people in Cleveland with opportunity, guidance and bright futures.” "We deeply appreciate KeyBank's support for promising high school students in Cleveland and East Cleveland," Case Western Reserve President Eric W. Kaler said, "as well as their engagement with our National Center for Mixed-Income Communities. These investments in local young people and Cleveland neighborhoods benefits our entire community." The Partnership will support three key areas:
U.S. Bank and Enterprise Community Partners (Enterprise) today announced the issuance of an innovative bond designed for targeted and measurable racial equity results. Issued by Enterprise Community Loan Fund, Enterprise’s Community Development Financial Institution (CDFI), the $30 million bond will help provide loans to Black, Indigenous and people of color housing developers under Enterprise’s Equitable Path Forward initiative.
This is the first CDFI-issued racial equity bond. The designation of this social bond as a racial equity bond provides for targeted investments in underserved communities of color. CDFIs have rigorous standards about eligibility and reporting when it comes to how funds are used, and this bond will require additional project-level vendor requirements and thorough impact reporting data for investors. The introduction of this new social bond framework into the capital markets for mission-driven institutions like CDFIs offers companies the opportunity to directly invest in projects that support racial equity in underinvested communities of color. “It is time to take decisive action to ensure the businesses that create affordable homes are more representative of the people who live in them,” said Lori Chatman, president of Enterprise Community Loan Fund. “Through Equitable Path Forward, our partnership with U.S. Bank will enable Enterprise to support talented developers across the country who have the skills and experience to create positive change in their communities.” To achieve its impact goals, Enterprise will use the bond proceeds to finance loan capital to people of color-led community-based nonprofit organizations and mission-aligned for-profit developers. These loans are primarily for multi-family housing and community facilities. The loans themselves will vary in both type and stage of project development, including acquisition, construction, mini-perm, permanent and predevelopment. U.S. Bank served as structuring agent, advisor and sustainability coordinator on the design of this unique framework. The company, which announced its long-term U.S. Bank Access Commitment earlier this year, is purchasing the initial $10 million of this $30 million bond. This structure provides more flexibility for Enterprise’s strategy to match its future Equitable Path Forward funding needs. “We see tremendous opportunity for positive social impact with racial equity bonds, especially with this type of innovative framework. This structure allows an investor to see, down to project-level details, how their investment is advancing racial equity,” said Marcus Martin, managing director and head of ESG, Fixed Income and Capital Markets at U.S. Bank. “We expect this transaction will inspire other organizations – including corporations, municipalities, not-for-profits and more CDFIs – to issue similar bonds that address critical social challenges and deliver the most robust results for all stakeholders involved.” “U.S. Bank is a strong supporter of CDFIs, which play an incredibly important role in financing entrepreneurs and small businesses that traditionally have been left out or underserved because of systemic inequities,” said Zack Boyers, president and CEO of U.S. Bancorp Community Development Corporation, the tax credit and community development subsidiary of U.S. Bank. “We’ve helped ensure more than $450 million in capital was available to CDFIs and their customers – the majority of that just in the last four years – and we look forward to continued collaboration to help build thriving communities.” Brown Hope, a Portland-based nonprofit is a community solution for racial justice, created the
The Black Resilience Fund in 2020 that is dedicated to fostering healing and resilience in our community by providing immediate resources to Black Portlanders. Through the generous support of over 18,000 individuals and Portland area businesses, over $2.1 million in micro grants were distributed to over 7,000 Black Portlanders in 2020. Recognizing the overwhelming success of this giving model, Beneficial State Bank sponsored a webinar to help other communities replicate The Black Resilience Fund. The webinar discussed how the Black Resilience Fund came into existence and provided best practices for the creation of Resilience Funds in other communities. Click here to access the recorded webinar. As the need for community healing and resilience is still present and urgent, The Black Resilience Fund continues to seek community support. Bank of America announced in May that it has increased its target for equity investment in minority focused funds from $200 million to $350 million. In less than a year, the company has committed more than $250 million to 90 investment funds across the U.S. These funds provide capital to Black, Hispanic-Latino, Asian, Native American other under-represented minority and women entrepreneurs to help them establish and grow their businesses.
Bank of America has also completed a total of 17 direct equity investments in minority depository institutions (MDI) and community development financial institution (CDFI) banks as part of its $50 million commitment made last year. “Equity investments in minority focused funds, MDIs and CDFI banks help address a persistent gap in access to growth capital,” said Brian Moynihan, CEO of Bank of America. “By providing this capital, we’re helping to level the playing field and open more doors for minority led businesses, entrepreneurs and innovation.” These investments are a component of Bank of America’s $1.25 billion racial equality and economic opportunity commitment, which focuses on addressing and advancing social issues in minority populations, such as health, jobs, education, housing and capital inequality, and will facilitate benefits across multiple states and communities. Equity Investments Closed investments include, but are not limited to:
Wells Fargo recently announced the Banking Inclusion Initiative, a 10-year commitment to help unbanked individuals gain access to affordable, mainstream, digitally-enabled transactional accounts – a meaningful entry point to fully participating in the economy and achieving financial stability. The initiative will focus on reaching unbanked communities and, in particular, helping remove barriers to financial inclusion for Black and African American, Hispanic and Native American/Alaska Native families, which account for more than half of America’s 7 million unbanked households. It also will assist those who are underbanked or underserved – individuals who may have a bank account yet continue to use high cost, non-bank services and have similar needs.
Wells Fargo will bring together multiple national and community stakeholders to roll out the broad-based initiative that is designed to increase access to affordable products, digital banking and financial guidance within unbanked communities. Through this initiative, Wells Fargo also will collaborate with partners to explore solutions to the credit challenges facing unbanked individuals. This year, the bank will work with partners to set and begin measuring a 10-year goal for reducing the number of people who are unbanked, with milestones along the way. According to 2019 FDIC data, 12.2% of Hispanic households, 13.8% of Black households and 16.3% of American Indian/Alaska Native households in the U.S. don’t have access to a mainstream checking account – compared with 2.5% of White and 1.7% of Asian households. The FDIC also reports that while these figures have been trending downward, the number of unbanked households will likely increase in the aftermath of the ongoing Covid-19 pandemic. “We recognize the high number of unbanked households is a complex and long-standing issue that will require gathering the best minds, ideas, products and educational resources from across our communities to bring about change,” said CEO Charlie Scharf. “Through our Initiative, we will organize our resources under one umbrella and work with a broad and diverse group of stakeholders on a sustained multi-year effort to accelerate financial inclusion in the U.S.” |
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