According to a recent study, the average black family in America would need 228 years to build the same wealth as the average white family. For many individuals and families, property ownership can be a key step toward wealth-building; yet people of color often face barriers when trying to borrow money due to factors like lack of access to equity capital, poor credit, or perceived “riskiness”. In this session, participants will identify systemic challenges borrowers of color encounter when trying to access capital through two interactive case studies, and then engage in a discussion about existing and potential solutions to address this problem. Facilitators from Capital Impact Partners, a national community development financial institution, will lead a conversation about how to develop programs and financial tools to serve a diverse group of borrowers. The conversation will cover Capital Impact’s efforts to design responsive solutions that provide the right type of capital, training, and technical assistance to support food entrepreneurs and local real estate developers in Detroit and Michigan through the the Michigan Good Food Fund and Detroit Equitable Development Initiative programs. Participants should attend the session prepared to think out loud about systemic and policy barriers that prevent people of color from fully participating in the local and regional economy. Through group discussion, workshopping, and presentation, the session will provide community development practitioners and systems thinkers with tools and ideas to design action plans that improve how borrowers of color access capital in their communities.
