Strengthening Black-Led Institutions With The Black Renaissance Fund

Throughout history, many organizations and initiatives have been dedicated to addressing systemic inequalities and providing support to Black-led institutions, businesses, and entrepreneurs. The United Negro College Fund (UNCF), National Urban League, and The Black Vision Fund are a few impactful, Black-led organizations fostering economic growth, education, and development within Black communities. These institutions depend on such foundations to unlock new opportunities, obtain grants, and champion policies aimed at breaking down structural barriers.

While many institutions have access to these resources, Black-led CDFIs still face challenges in securing funding, tools, and technical support needed to scale their impact and sustain long-term growth.

A Historical Milestone: The Black Renaissance Fund

In 2022, The African American Alliance of CDFI CEOs (The Alliance) launched the Black Renaissance Fund (BRF), to provide patient capital to Black-led CDFIs, creating a pathway for Black communities to share equitably in the CDFI industry’s expansion. This fund supports CDFIs in their mission to empower underserved populations through flexible lending solutions, capacity-building resources, and increased access to capital.

CDFIs serve as vital lifelines for marginalized communities due to the essential financial support they provide. Unfortunately, these institutions struggle to secure adequate funding from traditional industry marketplaces, as they are often seen as “high-risk” due to their focus on disadvantaged communities. Additionally, serving low-income populations requires specialized financial products and client support which results in paying higher operational costs. Black and Brown CEOs often encounter unique racial challenges like skepticism of their leadership capabilities, underrepresentation during decision-making and limited access to professional networks which can hinder an institution’s growth and impact.

With support from Bank of America, the Rockefeller Foundation, and the Adrian Dominican Sisters, the BRF is on track to deploy $3.2 million to Black-led CDFIs by the end of 2024. These funds will support initiatives such as microloans for entrepreneurs in Boston and housing and commercial real estate development in Chicago. However, these efforts only scratch the surface.

According to The Alliance’s annual member survey, Black-led CDFIs in its network sought to raise over $200 million in 2024 yet faced a capital gap of at least $35 million between available resources and community demand.

Looking ahead to 2025, the BRF plans to expand its capital deployment with a focus on supporting climate lending programs. Through the Justice Climate Fund (JCF), The Alliance will help its members access funding awarded through the EPA’s Greenhouse Gas Reduction Fund, Clean Communities Investment Accelerator. Alliance members would benefit from technical assistance grants and loan capital to support decarbonization and clean energy projects in the low income and disadvantaged communities they serve.

“The Black Renaissance Fund empowers our members to deliver equitable capital to marginalized communities, fostering opportunity and economic growth in every corner of the country,” said Erica L. King, Senior Vice President of Economic Development and Lending at The Alliance. “By introducing resources that also support climate-friendly investments, we’re not only addressing historical inequities but also fostering a sustainable future. Additionally, by bridging financial gaps, we’re supporting vibrant, resilient communities and ensuring that resources reach those who need them most.”

To measure its long-term impact, the BRF will utilize the African American Equity Impact Scorecard, a tool developed in 2021 in partnership with Community Vision. This scorecard prioritizes wealth-building in Black communities and reshapes how organizations assess their projects. Its five key assessment categories—Leadership & Power-Building, Economic Development & Job Creation, Equity, Community-Centered Approaches, and Catalytic Impact—create a framework for accountability and meaningful outcomes in Black communities.

Why Supporting Black-Led Institutions Matter

America’s legal system and corporations retreating on affirmative action and DEI initiatives this year is a reflection of the economic and political landscape we are shifting into. These progressive programs are essential to addressing systemic inequalities, promoting representation, challenging bias, and creating equal opportunity for all. Black-led institutions will continue to face challenges regarding support and funding, as the rollback of these initiatives often disproportionately impacts organizations and programs that support equitable practices. Scaling back threatens to widen existing disparities, making it more difficult for Black-led institutions to sustain their missions and advance social and economic justice.

Financial support for Black-led institutions is essential to help them continue their work in education, cultural preservation, social justice, climate and environmental justice, and economic empowerment. Many Black-led institutions provide vital services to marginalized communities, and sustained investment can help bridge gaps in access to resources, quality education, and community services.

In the words of Former President Barack Obama, “Change will not come if we wait for some other people or some other time. We are the ones we’ve been waiting for. We are the change that we seek.”