Opportunity Finance Network (OFN) hosted its annual Small Business Finance Forum virtually this year due to COVID-19. In addition to a new digital format, the theme “Ensuring a Shared Recovery Across America” was representative of this unique time in history. Listening to speakers from organizations across the country, I was impressed by how CDFIs are rising to the challenge to solve economic problems and drive change.
Small businesses are struggling with disruption and potential closure due to COVID-19. CDFIs provide critical funding to keep them running through various programs including the Paycheck Protection Program (PPP). They are listening to clients, understanding their unique needs during the pandemic, and providing critical business support and technical assistance. They are helping small businesses manage cash flow, as well as plan and implement survival tactics. CDFIs are providing a shoulder to lean on during turbulent times.
CDFIs are also in the fight against racial inequality as it relates to access to capital. As community-based lenders, CDFIs seek to help small minority-owned businesses. These businesses are often bypassed by the traditional banking system, as evidenced by the first deployment of the PPP. CDFIs fought hard to access PPP funding on behalf of their clients, enabling more minority-owned businesses to survive. And, before the pandemic CDFIs have been addressing the gap in access to financing, much of which runs along racial lines.
CDFIs have always been strong pillars of their communities. This holds true whether a crisis is sudden and swift such as a pandemic or natural disaster, or when it is slow such as economic blight and deterioration. Since their inception, CDFIs have been listening to their constituents and providing more than capital and financing – they provide belief and hope. These organizations believe in small businesses and their power to drive community and economic growth. And, they offer hope to small business owners. I am still moved every time I hear a small business owner say, “Because a CDFI believed in me, I can realize my dream of owning a business.”
Thank you to the Opportunity Finance Network for organizing the 2020 Small Business Finance Forum. Putting together these forums is challenging under normal circumstances, so kudos for executing the first virtual edition. I am inspired by the stories of CDFIs, the partners and funders who enable their work, and above all, the small business owners who dare to dream in the face of adversity.
If you are not already a member, please consider joining OFN.