The African American Alliance of CDFI CEOs (The Alliance) is a membership-driven organization founded in 2019 with a clear mission: to support and grow historically marginalized communities and the diverse executives leading the Community Development Financial Institutions (CDFIs) that serve them. With 79 members and 30 associate members whose activities cover all 50 states and the District of Columbia, The Alliance seeks to disrupt systemic and structural barriers by increasing the financial stability and organizational capacity of its members.
The ultimate goal is to help marginalized people, families, and communities to achieve financial stability, enjoy economic mobility, and pursue pathways to wealth. The Alliance's work is grounded in three primary value propositions: the prioritization of the voices and needs of the Black community, the power of partnerships and collective action, and a focus on economic empowerment and freedom.
At The Alliance, the belief is in the unique experiences, strengths, talents, and opportunities presented by its members. They are unapologetically aspirational for wanting the best for their communities.
The Black Renaissance Fund
One of the key initiatives supported by The Alliance is the Black Renaissance Fund (BRF), a national fund providing patient capital to Black-led CDFIs and long-term operating support for the Alliance. Launched in September 2022, the Black Renaissance Fund aims to level the playing field for Black communities.
By providing below market interest rate loans to members of The Alliance at a time when national borrowing rates are already up and could continue to rise, this national loan fund is focused on supporting businesses and building wealth and racial equity in Black communities.
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The Rockefeller Foundation has contributed significantly to this effort, providing a $5 million grant to support the Black Renaissance Fund. This grant is part of its commitment to the White House Economic Opportunity Coalition, which aims to strengthen the capacity of CDFIs.
As Lenwood V. Long, Sr., President & CEO of The Alliance, stated, “The Black Renaissance Fund is crucial in addressing systemic barriers and fosters an ecosystem for increased investments in affordable housing, high- quality job creation, small business support, and community facilities development in marginalized communities served by Black-led CDFIs.”
To date, the BRF has raised $17.5 million in funds and is currently open to additional investments from other funders.
Why Black-Led CDFIs Matter
While CDFIs have been a vital source of capital for underserved communities for decades, Black communities have historically been underrepresented. Black-led CDFIs still experience inequitable access to capital, capacity-building resources, and technical assistance.
Between 2014 and 2017, the assets of white-led CDFIs grew by an estimated $21.8 billion, while those of minority-led CDFIs grew by just $682.5 million. This disparity highlights the critical need for organizations like The African American Alliance of CDFI CEOs to level the playing field.
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Impact and Initiatives
The Alliance is actively involved in various initiatives aimed at promoting economic justice and supporting Black-owned businesses. These include:
- Supporting the national Fund’s mission to promote economic equity & create catalytic impact.
- Developing a Capstone Report that captures the evolution, impact, and legacy of the African American Equity Impact Scorecard initiative.
- Empowering CDFIs to assess and enhance their effectiveness in serving Black communities.
- Addressing systemic oppression in order to ensure fairness in the access to opportunities, resources, and rights for the Black community.
- Providing affordable financing and tailored technical assistance, ensuring women-owned businesses can grow, hire, and build generational wealth.
The organization also works with partners and members to identify the availability and cost of financial products in member communities.
TruFund: A Case Study in Action
TruFund Financial Services, Inc. is a prime example of a CDFI making a tangible difference in underserved communities. Headquartered in New York City, TruFund operates in New Jersey, Alabama, Louisiana, Texas, and Georgia, serving underserved small businesses, nonprofits, and individuals since 2005.
Since joining the African American Alliance of CDFI CEOs in June 2019, TruFund has found a natural synergy with its mission to advance financial equity and inclusion. James H. Bason, President and CEO of TruFund, has been deeply committed to The Alliance’s vision from the start, participating in its Investment Committee and sharing strategies for addressing systemic inequities.
One of TruFund’s most transformative initiatives is the Real Estate Acquisition Program (RAP), which offers up to 90% financing and technical assistance to help small business owners acquire real estate. This program stabilizes costs, avoids displacement, and creates opportunities for wealth building.
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A prime example of TruFund’s impact is its support of Lakou Cafe, located in Weeksville-a historic neighborhood in Brooklyn, New York. With TruFund’s RAP loan, entrepreneur Cassandre Davilmar purchased a 2,000-square-foot building housing her Haitian fusion café and two apartments leased to local residents. The café employs 12 individuals and has become a hub for community engagement.
Addressing Challenges and Building Trust
Advancing financial equity comes with significant hurdles, particularly the deep-rooted mistrust in financial institutions due to historical exclusion. TruFund and other CDFIs are actively working to rebuild trust through investment, advocacy, transparency, and education.
Recognizing Leadership and Vision
The African American Alliance of CDFI CEOs is led by visionary individuals committed to economic justice. In every era of progress, there are leaders whose vision and resolve shape the future. Today, the call is clear: our economy needs champions who are passionate about creating pathways of opportunity for Black entrepreneurs.
Inez Long, a co-founder of The Alliance, was a driving force in advancing Black-led CDFIs, ensuring that communities of color had the resources and support needed to thrive.
The Alliance is also proud of the work its members are doing in extraordinary ways. CDFIs play a powerful role as gap fillers-turning challenges into investment, and investment into lasting community change.
Looking Ahead
The African American Alliance of CDFI CEOs continues to expand its impact and reach. By empowering Black-led CDFIs, The Alliance is working to close the racial wealth gap and build a more equitable economy.
Through impactful programs, influential policy advocacy, and accessible loan funds, The Alliance strengthens financial and operational capabilities so Black-led CDFIs can better serve entrepreneurs who would otherwise lack access to capital and technical assistance. Together, we can close the racial wealth gap and build a more equitable economy.
