Earlier this year, when it was clear that the Entrepreneurs of Color Fund would meet its $500 million lending goal, we took a look behind the numbers to determine what comes next.

We talked to the 23 community development financial institutions (CDFIs) that are part of the Entrepreneurs of Color Fund network, in addition to LISC, and we connected with our philanthropic funders to understand their priorities and their expectations for impact. They contributed critical insights about our experience to date, including work in 10 metro areas.

But the most persuasive information came from our borrowers and their 9,500 loans — businesses that would not have been able to expand operations, hire staff, purchase equipment and grow their revenues if it weren’t for Entrepreneurs of Color Fund. They are retailers, construction companies, restaurants, small manufacturers, and more. Some have just one or two employees; some have dozens. But they all contribute to the well-being of their owners, workers, customers and communities.

The strategy that emerged from those conversations is guiding Entrepreneurs of Color Fund's efforts for the next three years, from efforts connected to artificial intelligence (AI) and green to an expansion of partners and loan products.

First, we are doubling our capital deployment. We plan to grow the Entrepreneurs of Color Fund portfolio to $1 billion in loans, while we also maintain our emphasis on the “but for” additionality that is so central to our work.

That means we will remain focused on business owners who are serving communities of color and who otherwise would not have access to appropriate financing — even if they have promising business models or strong track records of success. By extending financing to them now, we can support their immediate plans for growth and help them build a history of financial performance, so they are better positioned for conventional financing opportunities down the road.

Second, we are deepening our work on systemic change. From the beginning, our goal was to both address capital gaps and to break down the barriers that created those gaps in the first place with the Entrepreneurs of Color Fund. (Read more about that here.)

Read the full article about the Entrepreneurs of Color Fund by Steve Hall at LISC.