Prior to the pandemic, running a successful small business was no easy feat. According to the U.S. Bureau of Labor Statistics in August of 2020, it was estimated that 20% of small businesses would fail within the first year, at the end of their fifth year close to 50% would fail, and in 10 years only one third of small businesses would still exist translating into an even higher failure rate of 70%. Unfortunately, the COVID-19 pandemic contributed to the already existing struggles and brought so many more new challenges for small businesses to face for survival. Since the onset …

Private companies are considered “for-profit” entities, which clearly outlines their purpose – making money for their shareholders by providing a service people will pay for in a marketplace. Their counterpart “not for profit” entities are more complex, serving multiple stakeholders and aligning themselves to community needs. Yet, their nonprofit label communicates what they are not and offers no clear definition or path for sustainability. Words are powerful and these connotations often result in demonstrating that nonprofit organizations are not on a level playing field. After all, would calling nonprofits “charitable” and for-profit organizations “uncharitable” work? Probably not. At Raza Development …

2020 was unlike any other year because it would capture a moment in time amidst one of history’s most unprecedented pandemics.  People, families, and entire communities were suffering through sickness, loss of their loved ones and their suffering businesses meant a loss of income for their families.   When I first joined the RDF Communications team in February, my first assigned project was to work on RDF’s 2020 Annual Report, and from the beginning, I knew this report would be very different. An Annual Report is essentially an investment report highlighting an organization’s mission and impact and provides a comprehensive review …

FOR IMMEDIATE RELEASE: February 24, 2021 Contact: Ruby Marinez Phone: 602-417-1415 Email: rmarinez@razafund.org RAZA DEVELOPMENT FUND AWARDED WELLS FARGO OPEN FOR BUSINESS GRANT TO PROVIDE RELIEF FOR SMALL BUSINESSES IMPACTED BY COVID-19   PHOENIX, AZ.—Raza Development Fund (RDF), the nation’s largest Latino Community Development Financial Institution (CDFI), has been awarded a $3.5 million grant from the Wells Fargo Open For Business Fund in support of its Small Business Initiative program which serves minority and women-owned small businesses suffering from the impacts of the Covid-19 pandemic. The funding will extend its reach to support small businesses in Arizona, Ohio, Texas, Minnesota, …

Over the past few years, I’ve had the unique opportunity of working for the Specialty Finance team at RDF. This experience has opened my eyes to the profound impact New Markets Tax Credits (“NMTC”) has provided to underserved communities across the country and also how vital Source Loans are to the NMTC Structure.  For those of you that are unfamiliar with the NMTC Program, the NMTC Program “incentivizes community development and economic growth through the use of tax credits that attract private investment to distressed communities” (cdfifund.gov). Instinctually, you may ask, what does this mean, what is a Source Loan, …

The nonprofit sector is facing its biggest challenge yet responding to a confluence of issues, including the pandemic, social justice, political unrest, and an economy on the brink of recession, hitting underserved communities they serve disproportionately. Most small businesses that began in and have become an integral part of their community face similar challenges. Having to close for periods, with reduced access to capital and needing to adapt to the ongoing crisis, small businesses, like their nonprofit counterparts, cannot merely “go online” or shift their operations in other ways that may allow them to survive. I believe in the community-based …

This last year, 2020, spoke a story about an ever-changing world that can never be taken for granted. RDF’s swift reaction to the worldwide health, economic, and social crisis proved not to be an exception. Last year RDF went through dynamic organization-wide innovations that allowed our team to better pursue our mission of creating financing solutions to create opportunities for low-income and Latino communities around the country. Innovations fit to face the needs of this ever-changing world. One amazing example of these innovations I reference was the COVID-19 Hope Fund, a continuation of our Small Business Initiative that focuses on …

As Community Development practitioners, we see first-hand how the inequities in housing, health, and education impact the communities we serve. The COVID-19 public health crisis has exposed these inequities and shed much-needed light on the disproportionate impacts for the poor and communities of color. According to recent articles by the Kaiser Family Foundation and Health Affairs, people of color are: at an increased risk for serious illness if they contract COVID-19 due to higher rates of underlying health conditions, such as diabetes, asthma, hypertension, and obesity compared to Whites; more likely to be uninsured and to lack a regular provider …

As a community development financial institution, we deeply value the relationships that we build with our borrowers.  To that end, RDF has staff in a variety of markets, who lead our efforts in identifying local community needs and forming relationships with local borrowers, including UnidosUS affiliates. Our East Coast team has established relationships with developers of affordable housing, charter school facilities, and many other local organizations. Brian Champeau, Director, East Coast Lending   Brian joined RDF in 2004, and lives in Montclair, New Jersey.  He graduated from New York University with an MBA.  Brian is the lead on sourcing and structuring transactions, and he oversees all East Coast Lending activity. He produced development deals with L&M …