Racial Equity, Inclusion & Accessibility

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New fund to provide liquidity to CDFIs serving micro and small business owned by people of color

  • 1.  New fund to provide liquidity to CDFIs serving micro and small business owned by people of color

    Posted 12-04-2020 04:24 PM
    I'm pleased to announce the creation of the Entrepreneur Backed Assets (EBA) Fund, a new nonprofit born out of collaboration among the Aspen Institute's Business Ownership Initiative, Revolve, and the CDFIs that are members of our Microfinance Impact Collaborative (Ascendus, Accion Serving Illinois and Indiana, Dreamspring, Justine PETERSEN, LiftFund and Opportunity Fund). EBA Fund is an innovative new financial tool that will strengthen the capacity of CDFIs to lend to small businesses in low-income communities and those owned by people of color by creating a secondary market for their microloans. You can read our press release here: https://lnkd.in/dHKgdVY.

    CDFIs have stepped up to support small business owners affected by the pandemic but doing so has strained their liquidity and financial strength. EBA Fund is empowering these crucial institutions by purchasing existing loans, providing capital for new lending. With capital raised to date we have completed transactions with five of the six CDFIs that are part of our Microfinance Impact Collaborative; 78% of the loans purchased are to entrepreneurs of color and 78% to businesses located in low- to moderate-income census tracts. Our plan is to expand to work with CDFIs micro and small business lenders with strong records in serving or that are led by people of color. To learn more about EBA fund, visit ebafund.org.

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    Joyce Klein
    Director, FIELD
    The Aspen Institute
    Washington DC
    202.736.1089
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