As the U.S. grapples with the triple crises of the COVID-19 pandemic, economic recession and systemic racism, a pain point has emerged in federal efforts to build an inclusive and equitable recovery – the lack of funding for community development finance institutions, or CDFIs. CDFIs have a rich history, providing low- to moderate-income households, small businesses and operating nonprofits like health clinics with access to responsible, affordable capital. Amid ongoing crises, CDFIs are proving to be the single best avenue for getting capital into the hands of the hardest hit communities.
U.S. Impact Investing Alliance’s Statement on Black Lives Matter
In this time of deep pain, frustration, anxiety, and anger, we at the U.S. Impact Investing Alliance stand with protesters around the country who are crying out for change. They are right. Our country is long overdue for its institutions and systems to recognize and reflect this fundamental truth: Black Lives Matter.
Opportunity Zones: Moving Toward a Shared Impact Framework
The tax bill passed in 2017 includes a provision creating various benefits for investors that move capital gains into designated low-income census tracts, known as Opportunity Zones, through special investment vehicles known as Opportunity Funds. This tax benefit has captured the attention of a wide range of stakeholders — from investors attracted by a new tax incentive to community development practitioners drawn by the promise of increased investment in low-income areas.