Podcasts | March 26, 2024

Impact(ed): An introduction to CDFIs and equitable community lending

Eric Horvath
Guest Author

Eric Horvath

Impact(ed) is part of the ImpactAlpha Podcast Network, a set of shows hosted and produced by leading voices in impact and sustainable investing, curated by ImpactAlpha.

Community lending from community development financial institutions or other local lenders supports economic opportunity in low and moderate income communities across the country.

In the latest episode of Impact(ed), Jocelyn Velazquez of IFF and Ana Ramos of Common Future join hosts Lucas Turner-Owens of Building Ventures and Eric Horvath of Earlystone Management to reflect on their personal journeys and how they’re pushing the boundaries of equitable community lending.

IFF’s Velazquez shares that “being a person that identifies as multi-racial and from the communities we serve, sometimes I want to [approve a certain deal] so badly, sometimes maybe more than [the applicant] even wants it, because when I was younger I know that I would have benefited from those services.”

But as a lender at a CDFI, she knows that inherent to her job is balancing “that the kids really need their after school program with [a prudent] credit decision.”

Ramos says that financial capital isn’t the only way a community lender can provide support to its borrowers.

Common Future, through its own media and messaging, amplifies “the value that [its investees] bring through their lived experiences and community relationships” to show to other prospective supporters how strong and impactful investees’ initiatives and capabilities truly are.

Listen to Impact(ed) on Spotify and Apple. Connect with Eric and Lucas on Linkedin, they’d love to hear your thoughts on this episode, your recommendations for future topics and guests, and be in community with you.