Indianapolis CDFI Collaborative Impact Report
The Collaborative is a partnership of community development financial institutions (CDFIs) with a focus on commercial or small business lending.
LISC can provide loans generally ranging from $500,000 - $5,000,000 with a focus on commercial real estate construction, rehab and bridge financing.
Bankable can provide small business loans from $10,000 to $350,000 for early stage and existing small businesses as well as small credit builder loans of $500.
Build Fund can provide loans generally ranging from $100,000 - $1,000,000 with a focus on commercial real-estate acquisition, new construction, rehab, equipment purchase and working capital in certain cases.
BOI can provide loans ranging from $1,000 to $50,000 for early stage businesses while pairing that support with business coaching and other technical support services.
About the Program
In late 2019, the Collaborative was awarded $1.5M through JPMorgan Chase Foundation to help increase access to capital and technical assistance for minority owned small businesses in several Indianapolis geographies including the Indy East Promise Zone, Near Northwest Quality of Life area and MidNorth Quality of Life area.
Each CDFI is able to lend to projects throughout Marion County but has a particular focus on these neighborhoods through the JPMorgan Chase grant. Minority, female, Veteran and reentry-owned businesses along with other businesses facing barriers to traditional financing in these geographies are priorities for lending.
Dr. David Hampton, Executive Director for LISC Indianapolis, shares the importance of CDFIs.
Robert Cook, Managing Director for JPMorgan Chase, discusses why financial institutions partner with CDFIs for long-term community success.
Testimonials
Tiny Urban Escapes
Indy’s first container boutique hotel owner Robin Staten highlights her journey using Indianapolis CDFIs.
Viva Tia Maria
An authentic Hispanic food manufacture, makes and sells premium dips, salsas, queso, tamales, and tortilla chips, all from recipes that have been passed down for generations. These delicious family-recipe foods are available at hundreds of retail and restaurant locations throughout the United States.
Co-owner, Rebecca Gonzalez, says:
“Working with a CDFI was a great experience! It was crucial in launching our products with key customers. A great way to help small businesses get up and going.”
Lakeisha Doll House Boutique
A fashion boutique that provides a variety of fashion styles and sizes for women. Owner, Lakeisha Dodson, shares:
“I learned fashion at a very young age. The history of my business pursuit began from me watching my grandmother go check her mailbox in a black full-length mink coat. I wanted to be just like her. My grandmother dressed like a true fashionista, a real diva.
When establishing my business account, my bank gave me information about using a CDFI to grow my business. My business loan allowed me to increase inventory and business supplies, and allowed me to lease a kiosk space in the mall.
CDFI’s help business owners with start-up funds and an opportunity to establish a credit line with the bank.”
Sip and Share Wines
Nicole Kearney, owner of Sip and Share Wines - a Black, female-owned boutique vegan winery, shares how working with local CDFI’s has helped scale her business.
Sugar & Shine Co.
Specializing in artistic and delectable desserts, Sugar & Shine has offered creative party planning and catering to Indianapolis residents since 2019. Business owner Maria Stewart used a local CDFI to help scale her businesses by securing funding to purchase a full kitchen food truck. Stewart notes:
“I recommend using a CDFI to several small business owners. I tell them, ‘Weigh your options and choose what will work best for your business.’”
Rita Ann’s Early Learning Academy
A licensed home childcare facility in the Brightwood community on the Eastside of Indianapolis. Owner, Katherine Adamou, shares:
“Seeking a loan for our business was a little challenging. We are grateful for the opportunity to work with a CDFI - the loan process was quick and easy. The financing helped us with construction projects like building a gate around the facility, as well as expanding our operation by three classrooms. Also, we are in the process of hiring two additional teachers.
Advice for new business owners: “Have a clear plan on how you intend to use the funds.”
MEETINGS & EVENTS
Los Angeles CDFI Learning Exchange
LISC Indianapolis partnered with LISC LA to host a CDFI/Non-profit Lender Learning Exchange between Los Angeles and Indianapolis in September 2022. The purpose of this learning exchange was to explore and investigate best practices in building lending infrastructure, innovative solutions to increasing access to capital, and foster collaboration and networking among small-business focused mission-based lenders.
Chicago CDFI Learning Exchange
Indianapolis CDFIs traveled to Chicago for networking and peer-to-peer learning including breakout sessions focused on funds development, CDFI partnerships, language access considerations during the loan process, technical assistance offered.
Guggman Haus Brewing Co. Learning Exchange
The Collaborative hosted a Learning Exchange in October 2022 at Guggman Haus Brewing Co. to connect and share lending resources with non-profits serving businesses. In 2023 we will host additional community events where non-profit lenders are able to connect directly with entrepreneurs and find ways to close the access to capital gap.
Equity Pays Study
In 2020, the City of Indianapolis and LISC Indianapolis supported a feasibility study for a local Black-led CDFI. The study, Equity Pays: A Case for a Black-led Community Development Financial Institution. The impetus to develop a Black-led CDFI came from the 2019 African American Coalition of Indianapolis’ Black Agenda. The agenda, developed with input from more than 800 Black Indianapolis residents identified this as a goal for Black economic inclusion and development. Through this study, we found the value proposition of a Black-led financial institution is clear—helping Black businesses gain access to capital while supporting the traditional financial systems understanding of the best way to support Black businesses.
The Equity Pays study was the foundation for the creation of Equity1821, the first Black-led CDFI loan fund in Indiana, which launched with a $1 million investment from the American Rescue Plan in October 2021. Equity1821 will leverage social, financial, and human capital resources with a focus on Black and other businesses of color in pursuit of racial equity in the small business ecosystem. The fund will create products and services that address the root causes of disparities for small businesses, as well as concerns expressed by Black business owners. Equity1821 recently earned the designation of African American Alliance Emerging CDFI Associate member with the African American Alliance of CDFI CEOs. The fund is currently staffed through Black Onyx Management, Inc., and is undergoing the Treasury designation process to operate as a CDFI. Following that, a national search for a chief executive officer will commence.
This collaboration was made possible in part by a grant from
Learn more at www.indianapoliscdficollab.org.