WEPOWER, a community of Black and Latinx changemakers in St. Louis working to build community power and realize equitable and just education, economic, health, and justice systems, has announced the creation of a $1.5 million investment fund to assist Black and Latinx entrepreneurs.

With a majority of the funds raised, including a $500,000 investment from institutional impact investor Living Cities, Elevate/Elevar Capital will invest in Black and Latinx entrepreneurs and provide them with connections and technical assistance. The fund will make capital more accessible by using a holistic approach to underwriting and by eliminating barriers such as collateral requirements and minimum credit score thresholds; keep ownership and control in the hands of the entrepreneurs rather than requiring them to give up significant equity in exchange for investment; have business owners commit to paying living wages and hiring in areas that have experienced generational disinvestment; and utilize a revenue-based repayment structure instead of relying on traditional fixed installments. A percentage of the returns on investment will be owned and managed by the local community, while the remainder will be used to enable the fund to continue investing and Black and Latinx business owners.

"It's rare to see a fund that uses investing in entrepreneurs as a way to generate wealth for their entire community," added Living Cities managing director Demetric Duckett. "This model could make a big impact in cities across the country trying to overcome systemic racism and move towards a more just and equitable future."

"We've seen the immense potential of St. Louis to advance racial equity through innovative approaches to community wealth building," said WEPOWER founder and CEO Charli Cooksey. "Black and Latinx entrepreneurs are more likely to be denied bank loans, offered less capital when approved, and are charged higher interest rates, keeping them from building wealth for their families and with marginalized communities. This fund will invest directly in Black and Latinx entrepreneurs, especially those committed to North St. Louis City, to help unlock our region's collective prosperity."

(Photo credit: Nyara Williams)