NEW YORK–Inclusiv said four new investors have become part of its Inclusiv Southern Equity Fund, including Bank of America, MetLife, National Cooperative Bank and Prudential Financial.
As CUToday.info first reported here, in late 2019 Inclusiv announced a $45-million fund aimed at investing capital in credit unions serving low-income and communities of color in 17 southern states. The fund was launched with support from the Kresge Foundation and is aimed at promoting economic mobility among low-wealth communities in those states where there are high concentrations of persistent racial wealth inequality and poverty.
“Inclusiv is delighted to be joined by Bank of America, MetLife, National Cooperative Bank and Prudential as investors in the Southern Equity Fund. With the support of our investors, the Fund is creating access to safe and affordable financial products and services - that should be the right of all people - to some of the most economically insecure communities in the U.S.,” said Cathie Mahon, president and CEO of Inclusiv. "Inclusiv is acting quickly to make investments into our member credit unions and is pleased to announce the first loan for $5 million to Freedom First FCU.”
According to Inclusiv, its investment arm, Inclusiv/Capital, formerly the Community Development Investment Program, is one of the first lenders of secondary capital and is the only national lender of secondary capital. Established in 1982, Inclusiv/Capital has invested over $180 million in community development credit unions (CDCUs). Inclusiv's Secondary Capital loans have been a catalyst for the double-digit bottom line growth for 81 CDCUs over 22 years. Recipient credit unions hold $16.6 billion in community-controlled assets and have originated $6.7 billion in consumer loans that average $2,800.