The African American Alliance of CDFI CEOs (Alliance) has announced a $5 million grant from the Rockefeller Foundation in support of the Black Renaissance Fund (BRF), bolstering Black-led community development financial institutions (CDFIs) in underserved communities across the United States.

The grant is part of the foundation’s commitment to the White House Economic Opportunity Coalition, announced in July of 2022 with the goal of strengthening the capacity of CFDIs to invest in and “level the playing field” for Black communities. Since the fund’s launch in September of last year, BRF has raised $17.5 million.

While CDFIs have been a significant source of capital for underserved communities for decades, Black communities continue to be underrepresented. “Black-led CDFIs still experience inequitable access to capital, capacity-building resources, and technical assistance,” said Gregory Johnson, managing director of the Rockefeller Foundation equity and economic opportunity initiative. “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.”

“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,” said Alliance president and CEO Lenwood V. Long, Sr.

(Photo credit: Getty Images/Cecilie Arcurs)