Posts tagged Stepping Stone Partners
Volume 69: Investments in Publicly Traded CDFI Banks Catalyzed by ECIP

In September of 2022, the Department of Treasury provided $8.3 billion of Covid relief to CDFI and MDI banks through a program called Emergency Capital Investment Program (“ECIP”). This program provided substantial equity-like awards ranging from $60-500 million to encourage these organizations to increase their financial services to low- and moderate-income, urban, rural, and minority communities. Some recipients are publicly traded, and these large cash infusions attracted the attention of some deep value-seeking investors. In this article, I will explain why this program presents a rare potential opportunity to earn high financial returns while investing in entities that are making a significant impact in their communities. 

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Volume 42: What do individuals who invest in CDFIs want YOU to know?

If you are an investor, you can be an impact investor. CDFIs are the ultimate double bottom line investment – earn a return on your principal and see the impact amplified many times over. The CDFI Fund, the certifying body of CDFIs, notes that a dollar invested in a CDFI generates between 8-14x impact. Now that’s a good return on investment! The pandemic illustrated the financial services ecosystem’s failure to serve poor, disabled, and BIPOC people and communities; yet CDFIs filled the gap and succeeded in serving these overlooked and financially vulnerable populations.

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