NALCAB launches first alliance of Latino CDFI leaders in the nation
The goal of NALCE, as it is called, is to unite and amplify Latino voices in CDFIs and benefit Latino and other underserved communities.
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For the first time in the nation’s history, there is an official consortium of Latino CDFI leaders working to benefit Latino communities.
The National Association of Latino Community Asset Builders (NALCAB) recently announced the product of a partnership with Capital One.
NALCE, which stands for National Alliance of Latino CDFI Executives, is a new cross-collaborative initiative that will serve to unite and amplify the voices of Latino-led Community Development Financial Institutions (CDFIs) and drive capital toward Latino CDFIs.
The goal is to further benefit Latino and other underserved communities.
“There has never been a more critical time for Latino-led CDFIs to unite, learn from other another, attract investment, and amplify their advocacy for equitable policy that will support growth and expand their impact,” said Marla Bilonick, president & CEO of NALCAB, in a press release.
NALCE will establish a space for Latino CDFI leaders from across the United States to discuss the various challenges and opportunities facing their local communities, as well as the national CDFI lending landscape.
The NALCE leaders will work to bolster individual participating CDFIs, and racial and ethnic equity of the CDFI industry at large. NALCE will also prioritize access to capital, peer learning and engagement, and policy advocacy for Latino-led CDFIs and the communities they serve.
Kim Allman, National Lead of Racial Equity & Social Justice Initiatives at Capital One noted CDFIs as “a crucial part of the financial services ecosystem.”
“They were founded in response to, and on the very premise of, equitable opportunity and access to lending. CDFIs stimulate economic growth in communities that have historically experienced underinvestment,” added Allman.
NALCAB currently represents 56 CDFIs within its membership, as well as many community lenders on the path to becoming CDFIs.
A recent study conducted by the HOPE Policy Institute found that over a 15-year period among CDFI Fund awardees, white-led CDFIs had a median asset size 2.5 times larger than people of color-led CDFIs.
In addition, there are currently over 1,000 CDFIs operating in the United States — less than 100 are Latino-led certified CDFIs.
This is an example of the representation and cultural disparity and imbalance, despite the fact that CDFIs have served so many Latino people, business owners and communities that have historically been left out of the mainstream financial system.
NALCE will play an important role in addressing these disparities.