Giving Compass' Take:

• Greensboro Community Development Fund Executive Director Wilson Lester discusses the ways lending to support Black-owned business and philanthropy connect, including the rise of impact investing.

• How can we support more business leaders and entrepreneurs of color? In what ways are we making progress for more equity in the capital markets, and what gaps remain?

• Find out why entrepreneurship is the key to building wealth for Black Atlantans.

On Sunday, June 10, 2018, I left town to spend a couple of days in Washington DC with two friends and colleagues. By invitation our summons came from Head and Heart Philanthropy founder Christal Jackson to attend Mosaic Genius 2018. A tapestry of influencers and thought leaders discussing entrepreneurship, access to information, capital and the power of policy, brought together with intention. Pandora’s box has been opened in our country and the only way to survive is the strategic sharing of information with people equipped to harness change in their immediate communities.

In my leadership role within the CDFI (Community Development Financial Institution) space as Executive Director of the Greensboro Community Development Fund, a large part of my job is to work with small business owners. Our institution works to fulfill their capital needs as well as provide them with information that will enable them to be a successful owner. Though philanthropy and lending may sound like opposing entities, through intentional work there can be a value creating intersection of intentionality and purpose.

Within the CDFI space, we attract funding from a few sources. Sources being Banks, Government, and Foundations. Regarding foundations philanthropic endeavors, it is paramount for leadership to be aware of the inequity in access to capital for the burgeoning entrepreneurial communities of people of color. Black women-owned businesses breach 1.5 million in the U.S., with gross receipts exceeding $42B. Yet, this segment experiences a denial rate of 33% in comparison to 12% of their non-minority counterparts. This creates a unique opportunity to move the margin to the mainstream of financial services utilized by small businesses that are under-connected. I encourage other leaders within the banking industry to become familiar with the nuances of business and capital needs within the fastest growing segments of American life and business.

Read the full article about how philanthropy and Black-owned businesses intersect by Wilson Lester at Medium.