$100 million social impact deposit initiative to drive community development and financial inclusion
NEW YORK, NY (May 8, 2024) — Inclusiv, a CDFI Intermediary and the national network of community development credit unions, today announced the launch of the Inclusiv Impact Deposits Fund that will raise and deploy $100 million of social impact deposits in community development credit unions (CDCUs) to grow and deepen their impact in historically redlined and other excluded communities. The announcement was made during Inclusiv’s annual conference, where it was revealed pioneering investors, including the Kataly Foundation and Bank of America, have already committed $84 million to date. Inclusiv will use the Impact Deposits Fund to demonstrate the opportunity for social impact investors, corporations and philanthropy to deploy deposits through its social impact deposit platform.
Deposits provide vital loan capital to fuel lending by community development credit unions. CDCUs provide important banking services to help people with low incomes build savings and wealth. CDCUs reinvest deposits locally through affordable loans to expand homeownership, finance small businesses, foster climate resiliency, and support financial security. The Fund will provide needed liquidity to credit unions working to meet their communities’ credit needs on terms designed to support mission-driven, affordable lending in historically redlined and under-resourced communities.
“The Inclusiv Impact Deposits Fund builds upon Inclusiv’s experience – now five decades long – of channeling investment to communities that have historically experienced under- and disinvestment,” said Cathie Mahon, President and CEO of Inclusiv. “We are thrilled to commemorate our 50 years of history with this partnership with the Kataly Foundation, Bank of America, and other investors as we look forward to building prosperity and opportunities through meaningful investments in CDCUs that are advancing financial inclusion and equity in their communities.”
“The Kataly Foundation is proud to invest $65 million with Inclusiv into social impact deposits. Given Inclusiv’s extensive and long-standing relationship with so many credit unions and cooperatives that serve our communities, we saw this fund as a key vehicle to invest 25% of Kataly’s unrestricted reserve. By placing funds at an interest rate of 65 basis points, we acknowledge how investment practices extract from Black and Indigenous communities and all communities of color and seek to do better. Because we recognize that climate justice, economic justice, and social justice are intertwined, we appreciate Inclusiv for directing us to those credit unions doing work at the intersection of these issues.” —Lynne Hoey, Chief Investment Officer, Kataly Foundation
“We are proud to have partnered with Inclusiv for 20 years to support community development credit unions and the families and businesses they serve. The launch of the new Inclusiv Impact Deposits Fund will bring low-cost funding to help these critical institutions grow, “ said Dan Letendre, Community Development Financial Institution Executive, Bank of America.
Inclusiv has been a leading intermediary to community development credit unions since 1982, providing $450 million in financing to its network of community development credit unions, which include CDFI, Minority Depository Institution and other mission-driven credit unions. With more than 500 active members, the Inclusiv network serves low-income and disadvantaged communities across the U.S., including in Puerto Rico and the U.S. Virgin Islands.
About Inclusiv
Founded in 1974, Inclusiv empowers its member credit unions to advance financial inclusion through advocacy, education, technology, and impact investment. Inclusiv is a certified CDFI intermediary instrumental in driving private and public investment in credit unions to build wealth for individuals, households, businesses, and communities formerly excluded from the financial mainstream.
About the Kataly Foundation
The Kataly Foundation moves resources to support the economic, political, and cultural power of Black and Indigenous communities, and all communities of color. By transforming our relationship to capital, the planet, and each other, we will redistribute and redefine wealth in a way that leads to transformation, abundance, and regeneration.
About Bank of America
Bank of America is currently the largest private investor in CDFIs with more than $2 billion in loans, deposits, capital grants and equity investments across its over 250 CDFI partners. CDFIs – typically non-profit loan funds – provide capital, mentoring and financial advice supporting small businesses, affordable housing, fresh food supermarkets, healthcare centers and nonprofit organizations operating in lower income communities. The bank partners with CDFIs in all 50 states and the District of Columbia to fund projects that strengthen families, businesses and entire communities in underserved areas.
