The ninth annual Co-op Innovation Awards supported four organizations’ work in Louisiana, Massachusetts, New York, and Washington state.
October 3, 2023 (Arlington, VA) – Four innovative cooperatives in four cities have received a combined $170,000 in catalytic grant funding from Capital Impact Partners’ 2023 Co-op Innovation Awards, which aim to increase cooperative development in communities living with low incomes and/or communities of color.
A composting company owned and staffed by formerly incarcerated individuals
A collaborative effort to convert multi-family housing into resident-owned co-ops
A training program for queer and trans farmers, and farmers of color
Professional development for maternal health workers who serve historically disinvested communities
“The recipients of this year’s Co-op Innovation Awards are helping to strengthen the kinds of shared pillars — access to housing, employment, health care, and healthy foods — that help build healthy communities and generational wealth,” said Ellis Carr, president and CEO of Capital Impact Partners and CDC Small Business Finance, each part of the Momentus Capital branded family of organizations. “Capital Impact Partners was founded more than four decades ago as part of a federal effort to encourage co-op development, and supporting the co-op model continues to be one of our key sectors. In addition to these grants, we have disbursed more than $315 million in loans to support cooperative businesses since our founding.”
“Providing support to spur new co-op development is critical in helping cooperatives grow and prosper across the United States,” said Casey Fannon, president and CEO of National Cooperative Bank. “We are proud to continue our support of the Co-op Innovation Awards, which fully align with our mission and help improve the lives of our communities.”
Since 2015, the Co-op Innovation Awards have issued a total of $855,000 in grants. The 2023 awardees are:
The Compost Cooperative; Greenfield, Massachusetts, $50,000
Northwest Cooperative Development Center; Olympia, Washington, $45,000
Rock Steady Farm; Millerton, New York, $40,000
Birthmark Doula Collective (operating as New Orleans Breastfeeding Center); New Orleans, Louisiana, $35,000
Grants Will Help These Organizations and Their Communities
The Compost Cooperative— a worker-owned cooperative that provides ownership opportunities to formerly incarcerated individuals — is being awarded $50,000 to develop a new line of compost to increase revenue and sustainability, creating additional job opportunities.
The Compost Cooperative, which turns food waste into compost, was developed inside a county jail by incarcerated people and provides job training and ownership opportunities to formerly incarcerated individuals.
“We build living-wage jobs with and for workers facing barriers to employment,” said Revan Schendler, president of The Compost Cooperative. “Thanks to this award, more than 300 residential customers and others will receive vermicast for their home and container gardens as the co-op builds out one additional full-time job with benefits.”
Northwest Cooperative Development Center — an organization based in Washington state that supports cooperatives in that region and beyond — is being awarded $45,000. The grant will support its work alongside three other co-op development centers to design a process for buying and converting multi-family properties into resident-owned housing cooperatives.
“The Co-op Innovation Award is crucial to transforming our current co-op housing program into a scalable model for preserving more types of housing across more states in the western United States,” said Sam Green, co-executive director of Northwest Cooperative Development Center.
Rock Steady Farm — a queer- and trans-owned farm in New York rooted in social justice, food access and farmer training — is being awarded $40,000 to develop and launch an immersive paid apprenticeship program for queer and trans farmers, and farmers of color. The program, Pollinate, is for new farmers who practice or are planning to practice cooperative farming models at a scale that can support the wider community.
Rock Steady Farm sustainably grows high-quality produce and makes it available to historically marginalized communities in the Hudson Valley and New York City. The farm seeks to disrupt and address the interconnected systemic barriers for queer and trans farmers, and farmers of color, in a way that supports the prosperity of the communities they serve.
“This award will help Rock Steady Farm create the conditions for queer, trans, and BIPOC farmers to thrive, despite the structural barriers that exist for queer and trans farmers of color in the food and farm industry,” said Rock Steady Farm co-owners D. Rooney, Maggie Cheney, Kyle Ellis, and Rica Bryan. “Through our longstanding community partnerships and with this funding, we will expand our support to beginner QTBIPOC farmers who seek to establish community-centered and co-op farming ventures.”
Birthmark Doula Collective — a grassroots worker-owned cooperative focused on improving maternal health and perinatal outcomes for historically disinvested communities in New Orleans — is being awarded $35,000 to provide professional development support and education to its members.
The collective, which operates as New Orleans Breastfeeding Center, centers and uplifts the experiences of people of color, families living with low incomes, and LGBTQ families, who experience systemic inequities in maternal and reproductive health care. The organization is currently owned by seven birth workers, lactation counselors, and community health care workers, who are 75 percent Black, majority working class, or from backgrounds of poverty, and 30 percent LGBTQ.
“The award advances our efforts to embed ownership and equity within the field of birth work and reproductive justice in New Orleans,” said Steph Visco, development coordinator for Birthmark Doula Collective. “Birth workers continue to bridge growing gaps in health care provision in this country and advocate tirelessly on behalf of their communities, and we deserve sustainable employment and ownership opportunities, living wages, and liberating work environments. This award will help us strategically and intentionally harness our cooperative power, and in return enable us to share these skills with other Black- and queer-led co-ops in New Orleans.”
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About Momentus Capital
The Momentus Capital branded family of organizations refers to the combined operations of Capital Impact Partners, CDC Small Business Finance, Momentus Direct Capital, Momentus Securities, and Ventures Lending Technologies. While each organization under the Momentus Capital brand still operates as a separate entity, their clients will now have access to more resources and products.
The Momentus Capital branded family of organizations is transforming how capital and investments flow into communities to provide people access to the capital and opportunities they deserve. We are working to reinvent traditional financial systems that have failed to address systemic issues of inequality, economic empowerment, and the widening racial wealth gap by offering a continuum of financial, knowledge, and social capital to help local leaders build inclusive and equitable communities and create generational wealth. This includes a comprehensive package of loan products, impact investment opportunities, training and business advising programs, and technology services that advance locally-led solutions.
Leveraging 80 years of combined experience, nearly $3 billion in assets, and strong community engagement, we have delivered $23 billion in financing, created and preserved 250,000 jobs, and served 12,000 small businesses and five million people across their history.
With headquarters in Arlington, Virginia, and San Diego, California, Momentus Capital operates nationally with a focus on larger urban areas and cities in Arizona, California, Michigan, Nevada, New York, Texas, and the Washington metro area.
Capital Impact Partners is transforming how capital and investments flow into communities to provide people access to the capital and opportunities they deserve. We work to champion key issues of equity and social and economic justice by deploying mission-driven financing, capacity-building programs, and impact investing opportunities.
Capital Impact is part of the Momentus Capital branded family of organizations, including CDC Small Business Finance, Momentus Direct Capital, Momentus Securities, and Ventures Lending Technologies. Collectively, we offer a continuum of financial, knowledge, and social capital to help local leaders build inclusive and equitable communities and create generational wealth. This includes a comprehensive package of loan products, impact investment opportunities, training and business advising programs, and technology services that advance locally-led solutions.
A nonprofit Community Development Financial Institution, Capital Impact has disbursed more than $3 billion since 1982 to create access to critical social services, grow entrepreneurs, and create quality jobs. Capital Impact’s leadership in delivering financial and social impact has resulted in the organization being rated by S&P Global and Fitch, and recognized by Aeris for its performance.
National Cooperative Bank is dedicated to strengthening communities nationwide through the delivery of banking and financial services, complemented by a special focus on cooperative expansion and economic development. NCB provides financial products and services for the nation’s cooperatives, their members, and socially responsible organizations. Headquartered in Washington, D.C., the Bank has offices in Alaska, California, New York, Ohio, and Virginia. To learn more, visit www.ncb.coop.
AUGUST 3, 2023 (Arlington, VA/San Diego,CA) – The Momentus Capital branded family of organizations announced today that Aeris — a leading expert in the financial and impact performance of community development financial institutions (CDFIs) and other private impact loan funds — has recognized it with strong ratings in the areas of impact management, financial strength and performance, and contribution to public policy.
New program is being launched to increase diversity in Cleveland’s real estate industry and is expected to, in turn, uplift communities of color July 19, 2023 (Cleveland) –– Entrepreneurs of color trying to develop real estate in Cleveland now have access to an innovative new program aimed at eliminating barriers to success and providing them with the tools they need to shape the future of the city’s communities.
The Cleveland EDI program is designed to seed, mentor, support and create more opportunities for emerging real estate developers of color, particularly as they develop projects in the very communities they are from.
The initiative is a joint effort by Cleveland Development Advisors (CDA), which provides expertise and financing to real estate projects that advance economic and community development; Cleveland Neighborhood Progress, a local community development intermediary that invests in community revitalization work in Greater Cleveland; and Capital Impact Partners, a mission-driven nonprofit lender based in the Washington, D.C., metropolitan area.
“Around the country, there is a profound imbalance in the real estate industry with respect to diversity, and we’re taking measures to correct that inequity in Greater Cleveland,” said Yvette Ittu, president and CEO of Cleveland Development Advisors. A recent study revealed Black and Hispanic real estate developers make up less than one percent of the industry.
“This program is designed to ensure more minority developers have a seat at the table,” she continued. “This will not only help ensure that developers reflect Cleveland’s population, but we believe it will better address the needs and advance the economic growth of the underrepresented communities where they live, are from, and that they better understand.”
Capital Impact Partners has helped create similar, successful programs in other communities. Since 2018, more than 200 developers of color have completed the EDI program in Dallas; Detroit; the San Francisco Bay Area; and the Washington metropolitan area. A similar program offered by Capital Impact recently launched in Austin, Texas.
“Over the past five years, the EDI program has sought to increase diversity, equity and inclusion for real estate developers of color in an industry where they are historically underrepresented,” said Ellis Carr, president and CEO of Capital Impact Partners, which is part of the Momentus Capital branded family of companies.
“We’ve heard from participants around the country about how important it’s been for them to receive the financial, knowledge, and social capital that they need to succeed,” Carr added. “We’re proud to be able to work with Cleveland Development Advisors and other Cleveland organizations to bring the EDI program to Cleveland. We want to help close the racial wealth gap for these developers and create more opportunities for the communities they serve.”
A priority objective for multiple civic partners
The EDI program is a part of a broader initiative, the Equitable Development Ecosystem Collaborative (EDEC), to support the success of minority developers with other community partners, including Cuyahoga County, the City of Cleveland, the Land Bank, LISC, Enterprise Community Partners, and Cleveland Neighborhood Progress.
“This is not an easy industry to break into and is a long overdue investment to help more minorities successfully navigate the real estate industry from project conception to completion,” said Mayor Justin Bibb. “Removing constraints on these developers is an important step toward addressing injustices that have made it harder for people of color to become players in this industry and to have an impact on their communities.”
Dione Alexander, President of Village Capital Corporation (a subsidiary of Cleveland Neighborhood Progress), said: “For decades, developers of color in Cleveland have not had equitable opportunities to participate and thrive in the real estate market. Part of the challenge has been the lack of access to capital and training, but a larger issue has been the lack of a coordinated network of service providers and mentors to support developers. The EDI program will partner high potential developers with the whole package of high-quality talent and resources Cleveland offers.”
Gina Merritt, a Black developer who will serve as a mentor to initiative participants, advocates for racial equity in part by developing more affordable housing in the Cleveland area to address the chronic shortage, with a focus on economic empowerment. She is principal of Northern Real Estate Urban Ventures, a social impact real estate development company that is working to transform the Hough neighborhood with the redevelopment of a vacant 116-unit Hough housing tower that will serve households earning 60% of the area median income, or $33,060 to $42,480 a year. She is also redeveloping MLK Plaza, which includes constructing 149 multi-family units, along with 7,500 sq. ft of commercial space and 6,700 sq. ft of live/work space. Future phases of the project will include townhomes and multi-family housing, along with 50 units of family housing on a vacant lot across the street.
“I look forward to serving as a mentor for the Cleveland EDI program and expanding access and social capital to increase diversity in Cleveland’s real estate industry and supporting a new generation of minority developers,” said Merritt.
In addition to Merritt, others who have volunteered to serve as mentors and advisors include Mitchell Schneider (First Interstate Development), Tom Charek (Welty Development), Arne Goldman (Marous Brothers Construction), Michael Panzica (M. Panzica Development), Andrew Iarussi (RHM Real Estate Group) and Scott Skinner (NRP Group), just to name a few.
This list will evolve as other developers are being recruited to be mentors and advisors in the program.
Council President Blaine Griffin said the program aligns with the priorities the City Council outlined in its recent Community Benefits Ordinance. “Council believes the growth and development of real estate developers of color is a win for Cleveland,” he said. “It creates more opportunities to grow the next generation of developers and assists in creating more family-sustaining jobs for Clevelanders of all backgrounds.”
What to Know About the Cleveland EDI program
The eight-month program will provide developers with training, technical assistance, mentorship, networking, and pathways to financing. Industry leaders will provide insights on the local review process, preparing financial applications and leveraging business partnerships with community members.
One of the many barriers to success is access to capital. There is a stark racial wealth gap when compared to white developers; developers of color are more likely to be denied for loans or to not receive the full amount they are seeking. They also historically have less access to friends and family who are able to provide investment funding. And while Cleveland has creative lending programs, those programs require attracting private equity, which can be a major issue for developers of color. Helping provide pathways to financing will be a key element of the curriculum.
The program will pair experienced developers with emerging developers to help launch their projects.
It is anticipated that 12 to 15 entrepreneurs will be selected for the program. Successful candidates will be selected based on the following criteria:
Demonstrate experience as a small-scale developer (with either for-profit or nonprofit organizations) who is seeking to further their experience and/or growing their real estate business. As this is not an introductory program, candidates are expected to have some direct real estate development experience.
Live in or have a strong connection to Cleveland.
Commit to attend training on Wednesdays during the months of October through May for up to four hours per week. There will be 16 sessions, held twice a month in a combination of in-person and virtual meetings; tasks; a showcase event for pitching real development projects; and ongoing meetings with a mentor/advisor.
Demonstrate interest in responding to Requests for Proposals (RFPs) for real estate development opportunities in Cleveland, with or without a development partner, within six months of completion of the program.
A webinar for applicants will be held on Wednesday, July 26, from noon to 1:30 p.m. Sign up for the webinar here: Registration Link.
Finalists will be selected in September and the program will begin in October.
Twelve grantees were awarded funds to support a variety of cold storage-related needs, from refrigerated vans to refrigerators in corner stores.
July 19, 2023 (Washington, D.C.) – Capital Impact Partners is pleased to announce the grantees for the inaugural round of Keeping it Cool, a new grant initiative conceived and supported by The Morningstar Foundation. Keeping it Cool is designed to close the cold storage gap in the region, furthering access to healthy, nutritious foods across Washington, D.C. and the surrounding jurisdictions including Arlington, VA; Alexandria, VA, Fairfax County, VA; Montgomery County, MD; and Prince George’s County, MD. With so many small food businesses and nonprofit organizations working with and distributing perishable foods, cold storage is a critical component of offering, serving and distributing healthy food in the region.
July 10, 2023 (Arlington, VA/San Diego, CA) – Capital Impact Partners and CDC Small Business Finance have announced that Gary Cunningham, the former president and CEO of Prosperity Now, has been named the new chair of the boards of directors for the two mission-driven lenders, effective June 13, 2023.
Momentus Securities aims to deliver more than $3 billion in community-based investments by 2026
May 22, 2023 (New York, NY) – Momentus Securities has launched with the goal of driving institutional capital to America’s small businesses and nonprofits — and positioning “social impact” as a fully investable asset class for institutional investors.
Momentus Securities — a registered broker-dealer and FINRA member — seeks to disrupt the mission-driven investing space by addressing the current scale and liquidity limitations in the sector that inhibit the deployment of institutional capital. Momentus Securities intends to facilitate the deployment of $3 billion of social capital by 2026.
“This is an innovative approach. We are transforming how institutional investment capital is unlocked and channeled into high-need community investments,” said Momentus Securities President and CEO Alicia Reyes, who brings 27 years of experience in investment banking and private equity to Momentus Securities. “The lending market in the impact sector is decentralized and highly dispersed. This is a challenge for institutional investors that want to fully incorporate the ‘S of ESG’ into their mainstream strategies because of the lack of liquidity.
“We see this as an opportunity to launch ‘social Collateralized Loan Obligations’ and, initially, intend to open warehousing lines to aggregate portfolios of loans across five key segments: affordable housing, healthcare, education, small businesses and food. Once ramped up, the portfolios will be securitized, and we will distribute the bonds as a takeout. These portfolios will offer institutional investors the opportunity to support communities and participate and invest at a scale not previously available. Lenders will achieve better terms while providing investors an improved risk return profile,” Ms. Reyes added.
Capital Impact partners with InspereX LLC to distribute the Notes through its Impact Investment Platform to a nationwide network of broker-dealers, institutions, and financial advisors.
Individual and institutional investors can purchase Capital Impact Investment Notes for as little as $1,000. Capital Impact Investment Notes provide investors with a unique opportunity to align financial goals with personal principles through values-based investing.
“Capital Impact Investment Notes help create a unique opportunity for funders and investors to work through Capital Impact to support communities,” said Natalie Gunn, Chief Financial Officer of Capital Impact Partners and CDC Small Business Finance. Capital Impact Partners and CDC Small Business Finance are two of the Momentus Capital branded family of organizations, which also includes Ventures Lending Technologies, among other organizations. “Investors continue to recognize that Capital Impact Partners delivers a strong financial performance while bringing a continuum of capital to disinvested communities, helping these communities have the chance they deserve to thrive.”
The Catalyzing Finance for Racial Equity Report from mission-driven lenders Nonprofit Finance Fund and Capital Impact Partners surfaces community and peer recommendations.
APRIL 26, 2023 (New York, NY/Arlington, VA) – Community Development Financial Institutions (CDFIs) were born out of the Civil Rights Movement to ensure that nonprofits and businesses — particularly those in communities of color and communities with lower incomes — have equitable access to loans. However, much work still needs to be done.
A new report examines ways that CDFIs, and other financial institutions, can further change their business practices to embed racial equity in their lending and investment practices.
The Catalyzing Finance for Racial Equity Report (PDF) is the result of a partnership between Nonprofit Finance Fund (NFF) and Capital Impact Partners, two mission-driven CDFIs. The recommendations are derived from interviews with 15 organizations in five states, including CDFI peers and community organizations. Those in-depth conversations covered subjects such as their experiences with community development and lending, as well as how CDFI practices and services could be improved to better support community health.
“Advancing racial equity requires that we listen to communities of color and constantly interrogate and improve our practices and policies,” said Aisha Benson, CEO of NFF. “By sharing our experiences of what’s working and what isn’t among peer CDFIs, we can speed progress toward shared equity goals.”
Capital Impact Partners and HousingWorks Austin are now accepting applications for their Austin Small Developer Training program, expanding on a nationwide initiative that has already supported more than 200 developers.
April 24, 2023 (Austin, TX) – A new program will provide small-scale real estate developers from underrepresented communities in Austin with the tools they need to grow their businesses — helping them to be more involved in the region’s booming real estate market and, in turn, to create more affordable housing.
Applications are being accepted from April 24-May 19, 2023, for the Austin Small Developer Training program, which seeks to assist developers who have been historically excluded or overlooked.
The free, four-month program will provide developers with training, technical assistance, mentorship, networking, and potential pathways for financing.
The Austin region continues to grow, but that growth has also led to rising housing costs, pushed longtime residents out of the city, and contributed to low rates of homeownership and business ownership in communities of color. Helping small-scale Austin real estate developers can also help close wealth gaps while bringing more affordable housing and investment into historically underserved communities.
These funds will be used to provide loans, grants, and development services to developers of color who build rental housing in disinvested communities across the United States
APRIL 14, 2023 (Arlington, VA) – The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) has announced that Capital Impact Partners was awarded a $4.95 million grant through the CDFI Equitable Recovery Program.
The CDFI Equitable Recovery Program will strengthen the ability of CDFIs to ensure that low- and moderate-income communities continue to recover from the COVID-19 pandemic and invest in long-term prosperity. The CDFI Fund awarded $1.73 billion to 603 organizations nationwide.
“This award will help us address the decreased access to affordable housing for low-income families, a problem that has only been exacerbated by the COVID-19 pandemic,” said Mindy Christensen, senior vice president of community development real estate for Capital Impact Partners. “With these funds, we can expand our strategy of creating more affordable housing while also building up the capacity of local real estate developers of color.”
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