A veteran of the Community Development Financial Institution (CDFI) sector, Scott Sporte has helped shape Capital Impact Partners’ lending priorities and has envisioned innovative pathways for supporting our communities. Scott recently transitioned from his role as Chief Lending Officer to a new role within Capital Impact, Chief Strategy & Innovation Officer.
In this interview, Scott discusses new focuses for CDFIs, outlines his vision for his role, and describes how championing equity and inclusion can transform the communities that Capital Impact serves.
By Ellis Carr, President and CEO, and Rosemary Mahoney, Board Chair
We believe everyone deserves a voice and economic pathways that allow them to shape their own futures.
We believe that a community’s voice and economic opportunities can be strengthened with the right tools. Our objective is to develop tools for and with our communities that amplified their voices and created hope, shared prosperity, justice and inclusion.
By Alison Powers, Program Officer, Strategy, Innovation & Impact
So many qualities define the life of a Cooperative Hall of Fame hero. Conviction and focus. Vision and persistence. Innovation and leadership. All contributing to a life dedicated to cooperative development and shared prosperity.
These characteristics are a perfect way to describe Rosemary Mahoney and Paul Bradley, lifelong champions of cooperative development. This week, Rosemary and Paul join other cooperative heroes as they are inducted into the Cooperative Hall of Fame, commemorating decades as cooperative developers. Rosemary and Paul’s contributions to the cooperative industry are undeniable; both have shaped our cooperative framework through their work and insights. It is great to have two long-term innovators in the co-op space so closely connected with Capital Impact, and we are proud to see them join this illustrious group of cooperative visionaries. A brief look at each of their histories shows why they are truly Co-op Heroes.
By Ronald Kelly, Director, Impact Strategies
“3. 7. 8. 2. 4. 0. 3. 7. The first thing that happens when you go to prison, they take away your name, and from that moment forward, you’re that number: Hodge, 37824037. It’s the beginning of the dehumanizing experience of mass incarceration.”
The words of Teresa Hodge give a brief and disheartening glimpse into the truth of America’s criminal justice system. What is worse is that, as Teresa alluded to, the dehumanizing experience of incarceration continues beyond the walls of the facility; it has lasting and far reaching impacts on those who have been caught up in the system.
Diane Borradaile recently joined Capital Impact as its new Chief Lending Officer. She leads her team to support Capital Impact’s mission to empower communities to break barriers to success by facilitating loan transactions for health care centers, charter schools, affordable housing, healthy food projects, and more. Diane’s commitment to community development has spanned more than 35 years, through lending at both commercial banks and Community Development Financial Institutions.
In this blog, we take some time to get to know more about Diane, her history, and what keeps her committed to building communities of opportunity.
By Nicole Boone, Business Development Officer
Boyle Heights is a bustling Latino neighborhood just east of downtown Los Angeles with a history dating back before the Mexican-American War. However, it’s the pressures of the present day that weigh heavily here. Approximately 66 percent of the population lives below 200 percent of the federal poverty level, 22 percent are uninsured, and few primary care doctors remain. The systemic poverty the residents grapple with creates ripple effects throughout their lives.
By Virginie Arnaud LePape, Senior Director, Lending
In 1982, Capital Impact was created with a single focus – support the development of cooperatives in underserved communities.
Charter schools create opportunities for innovation that drive academic success for students in underserved communities.
Along the way, we gradually expanded our scope to meet the growing needs of the communities we served by working to increase access to health care, education, housing, and healthy food.
A handful of loans slowly grew into a truly diversified portfolio of offerings as we took the risk to partner with those organizations that traditional financial institutions shied away from. Twenty-five years after we began lending in 1984, we hit an incredible milestone of deploying $1 billion into low- and medium-income communities across the country.
I am humbled that just eight years after that initial milestone, we more than doubled that achievement by deploying more than $2.5 billion through the end of our record-breaking efforts in 2017.
It is a true testament to our mission-driven team for living our mission statement by delivering both the capital AND commitment that enables those most in need to build communities of opportunity that break barriers to success.
While we pause to celebrate, we also know that we must increase our resolve. Too many of us continue to struggle, with a disproportionate impact on people of color.
To help solve the key social and racial justice issues facing our society, we must continue to make inroads in achieving our strategic pillars to address systemic poverty, create equity, build healthy communities, and promote inclusive growth.
Innovative health care models support older adults to age with dignity in their communities.
This requires supporting our lending work by deploying new and innovative programs backed by cutting-edge research; making the case for support from lawmakers at the federal, state, and local levels; amplifying our impact investing efforts with both individuals and large institutions; and forming partnerships that ensure that our solutions are grounded in what communities both need and can act on.
We did not get to this point alone, and for that I want to thank all of those who have supported us, as well as those organizations who are working directly with often-neglected communities every day to deliver the services they need to thrive.
By working together, I know that we can empower communities to achieve transformative progress in 2018 and beyond.
By Will Robison, Senior Loan Officer
As wildfires burned through California’s Napa and Sonoma Counties in late 2017, Sandy Cesario was forced to evacuate her home and all she knew. Like many of the 5,000 residents of her small Calistoga town, she took refuge at one of the county’s evacuation centers filled with uncertainty.
That was the last place she expected to see her personal doctor.
“Right now my throat’s all filled with smoke and real raspy and deeper than normal, but other than that, we’ve been taken care of like we’re kings and queens,” Cesario said.
Amidst the chaos caused by this natural disaster, OLE Health’s staff, along with several other Federally Qualified Health Centers (FQHC), immediately sprung into action, working tirelessly to ensure that their current patients didn’t have any gaps in their care while simultaneously providing immediate critical care to the greater community, treating everyone that they could at the county’s evacuation centers.
“They just give great care. They go above and beyond what they do. They bussed a bunch of us to get our medications, to make sure we have what we need to get us through the month. What can I say? That’s my personal doctor, Dr. Bermudez, and she’s the greatest there is.”
Serving Their Communities in a Crisis
OLE Health is the only FQHC in Napa County, with five locations throughout the surrounding area. OLE serves 1 in 4 children and 1 in 6 adults in the area. They knew that their patients – Napa’s working class, a majority of whom are uninsured or underinsured, who rely on OLE for affordable health care – would be uniquely affected by the fires, disrupting their treatment and access to medication.
Dr. Colleen Townsend was one of OLE Health’s staff members who rallied to provide health care to her community during the California wildfires.
“At OLE Health, we’re a community health center, so we provide primary medical care to people of all walks of life, insured or not insured, or insured through federal programs or state programs. We often see patients who have no insurance. Those patients often have difficulty accessing care when the services are interrupted,” Colleen Townsend, a family physician at OLE, said as she treated patients at a busy evacuation center during the October fires.
During the first week of the fires, OLE treated around 700 patients like Cesario. There was the immediate care they provided, for the people who had broken ankles from running from the fires or conditions related to poor air quality. Many of the grape pickers at River Ranch Farmworker Center, where OLE provides outreach care, continued working outside during the fires, exposing them to dangerously polluted air.
However, one of their biggest successes was filling the gap for people with chronic conditions whose health depends on access to their life-saving medications. As local residents fled the fires, they were forced to temporarily relocate, and medications would have been prohibitively expensive at other health facilities and pharmacies. To fill the gap, they teamed up with volunteers from nearby Touro University to provide free rides to pharmacies that remained open during the fires so that patients with conditions like diabetes could acquire the medications they needed. Many residents, who either lost proof of their insurance or didn’t have insurance, received gift cards to local pharmacies from OLE.
“OLE Health has been present at shelters across Napa since people were evacuated after the fires began,” Townsend said. “We’ve been providing supportive services, checking in to make sure that people had access to the medications they needed for either new or acute symptoms, but also providing support for chronic disease management with medications and calling in prescriptions..”
OLE’s efforts didn’t stop when the fires were finally contained weeks later. Local residents were still grappling with the emotional aftershocks of the wildfires, so OLE provided mental health care resources for victims. They also walked patients through receiving insurance through Covered California even if their information had been lost in the fire. Additionally, since many of OLE’s patients are undocumented, they also guided them through the process of receiving FEMA funds specifically for immigrants.
Medical staff wait to serve patients at a wildfire evacuation center in Northern California.
OLE wasn’t the only FQHC that did exemplary work to serve those affected by the fires. Petaluma Health Center opened its doors to offer walk-in appointments to everyone that needed care – not just its usual patients – and opened on Sundays, when it is typically closed. During the early days of the fire, they saw hundreds of extra patients. Sonoma Valley Community Health Center also provided immediate care and resources like face masks and charging stations for fire victims, and later partnered with the University of California, San Francisco to offer their patients crisis counseling specifically tailored for fire victims. They also helped patients apply for benefits like disaster-related Supplemental Nutrition Assistance Program benefits under CalFresh and short-term disability.
Supporting FQHCs that Go Above and Beyond
Too often, vulnerable populations receive sub-par health care because they can’t afford the high costs of quality care. FQHCs like OLE, Petaluma HC, and Sonoma Valley CHC do a great deal to serve their patients, both in everyday and emergency situations. Many offer not just health care, but dental care, and mental health services, as well as connections to local agencies that providing affordable housing, fresh produce, and legal help with their immigration and citizenship needs.
OLE Health and other FQHCs went beyond their typical duties to provide quality health services to all members of the local community.
Capital Impact Partners is well acquainted with the work of organizations like these, work that often goes above and beyond the norm. Their hard work providing care to all members of their communities is why Capital Impact has partnered with health centers like these, providing the vital capital and capacity building support they’ve needed to grow and expand.
“The types of services that a health center provides are difficult to access either from private physicians or from emergency rooms, which are much more costly. The full range of services, disease care, as well as becoming a real medical home for a patient, are important to us,” said Scott Sporte, Capital Impact Partners’ Chief Lending Officer.
“We’re looking for [partners] that are focused not just on seeing the highest number of patients in a day, but really making sure that those are quality interactions, that are more about the outcome for the patient’s health,” said Sporte. “We’re looking for those who are thinking holistically about the way the care is delivered – that it includes not just primary care, but also thinking about the mental health needs and maybe even the social needs that a patient may have.”
While FQHCs play an essential role in underserved areas, they struggle for financing to support their programs. Many traditional lenders see FQHCs and other community health centers as risky investments. Capital Impact has financed more than half of the FQHCs in California through programs including the CPCA Ventures Program, the New Market Tax Credit, and the Healthier California Fund. Capital Impact invests in FQHCs nationwide because they are key to improving health care outcomes for vulnerable communities. Without the invaluable safety net that these FQHCs provide, the health of individuals in many underserved communities would go un-addressed, and disasters like the Northern California fires could have been even more devastating to low-income patients.
To learn more about how Capital Impact can support your FQHC, get in touch with our staff. To learn more about our work with OLE Health, read this story.
By Emilie Linick, Senior Loan Officer
Equitable access to education provides all children with the chance to live up to their full potential and lead choice-filled lives. With racial and socio-economic inequity growing across the nation, high-quality education is crucial to giving students from low-income communities the opportunity to achieve the same life successes as their more affluent peers.
As a mission-driven Community Development Financial Institution (CDFI), Capital Impact Partners aims to create communities of opportunity, and education is one cornerstone of that mission. For more than 20 years, we have partnered with and financed charter schools to extend high-quality education to the children who need it most.
By Michelle Betton, Writer
Across the country, unemployment numbers are down and the news talks of economic recovery and the booming stock market. Outside of that news, however, are many people who are still struggling to achieve equal opportunity and prosperity with the rest of the country.
Transformative investments are needed to get struggling Americans into the mainstream economy and working toward a brighter future.
This means access to health centers, charter schools, affordable housing, grocery stores that sell fresh and healthy food, transportation, and other infrastructure improvements. However, access to financing can be a major barrier to these projects getting off the ground.
Financial services, investment capital, and affordable credit from traditional financial institutions has historically been limited for those looking to serve low-income communities.
Community Development Financial Institutions (CDFIs) have played a major role in empowering communities to address the structural barriers that exclude them from shared prosperity.
What are CDFIs exactly? How do they work? Whom do they serve? Here is a breakdown…
Insight into CDFIs
Martha’s Table provides healthy food to Washington, D.C. communities daily.
CDFIs as we know them today began more than three decades ago as private financial institutions focused on increasing economic prosperity for low-income and underserved communities by providing affordable lending for community projects. Today, more than 1,000 CDFIs operate across the United States.
Over time, their work has evolved to address key issues of economic, social, racial, and political justice. These mission-driven institutions provide support in disinvested areas that traditional lending institutions deem too risky to finance; in fact, they are mandated to embrace risk in order to create social impact.
CDFIs fall into four sectors: community development banks, community development credit unions, community development loan funds, and community development venture capital funds. Each has a slightly different way of operating, but the end product is the same: communities of opportunity that break down barriers to success.
CDFIs work as market creators and market catalysts by supporting community businesses—including small and family businesses, micro-enterprises, cooperatives, non-profit social service organizations, mixed-use real estate, and affordable housing. CDFIs’ ability to foster catalytic change comes from loans and grants from government institutions like the CDFI Fund, loans and grants from large financial institutions, and program-related investments from major donors and foundations.
Meals on Wheels support older adults to age within their communities.
Financing from CDFIs targets specific populations – often low-income individuals in both urban and rural settings, and heavily concentrated with women and people of color. These high-impact interventions build community infrastructure and resilience.
CDFIs work for and with the communities they serve, developing strategic financing packages – ranging from pre-development to real estate acquisition, from construction to refinancing – for vital projects needed to help communities succeed. Generally smaller than mainstream financial lenders, CDFIs come in different sizes and provide loans ranging from $50,000 to $5 million. CDFIs have also jointly raised capital to deploy larger loans in the multi-millions.
In addition to core lending services, some CDFIs also provide capacity building, help build and scale social innovation programs and support policy advocacy as a means of further supporting local organizations. Combined with our lending services, these efforts promote increased job growth and retention, improving communities’ economic outlook and viability.
Importantly, CDFIs are not in business to maximize profits. Instead, CDFIs maximize support for community needs and empowerment.
CDFIs’ Immense Impact on Communities
The impact of CDFIs shows in their support and empowerment of underserved communities to address the barriers that hold them back from shared prosperity.
Axis Community Health provides high-quality health care services for its clients.
In 2016, CDFIs supported by the CDFI Fund financed nearly 12,000 businesses, created 37,600 jobs, and created 34,000 affordable housing units. Nearly 450,000 individuals received financial literacy capacity building through CDFIs. As part of the CDFI Fund’s Bond Guarantee Program, $119 million was spent on rental housing, $102 million on charter schools, $13.3 million for health care facilities, $2.7 million on daycare centers and $2.9 million on small businesses.
Capital Impact’s Role in the Space
Equitas Academy is one of many charter schools preparing students for future success.
Since 1982, Capital Impact has served often-neglected communities, starting with the cooperative model to foster economic development for low- and moderate-income areas.Our non-profit, mission-driven lending began in 1984 and progressively expanded to support communities nationwide, including establishing offices in Oakland, California and Detroit, Michigan. Capital Impact also grew to support access to quality health care, education, housing, healthy food, dignified aging and cooperative development.
Capital Impact works to improve the lives and futures of individuals and communities through four strategic pillars: addressing systematic poverty, building equitable communities, creating healthy communities, and ensuring inclusive growth.
Through it’s place-based focus, Capital Impact has played an integral role in revitalization efforts in Detroit.
Since its inception, Capital Impact has deployed more than $2.5 billion for community development projects nationwide. In that time, our lending has created more than 36,500 units of affordable housing, helped more than 2 million patients receive quality health care, facilitated access to quality education for 240,000 students in 235 charter schools, financed 86 retailers to provide healthy food for 1 million people, helped 37,000 older adults age with dignity through 191 projects, and supported cooperative services for 870,000 customers. Our place-based strategy has also facilitated the revitalization of Detroit neighborhoods, creating mixed-use spaces and multi-family housing to help the city rebound.
In addition to our lending, we advance programs to create equity and opportunity. For example, our Equitable Development Initiative provides catalytic capital and training to minority real estate developers in Detroit so that they can participate in the city’s revitalization efforts. We are also investing nationally in efforts to scale worker-owned, home care cooperatives that are creating quality jobs for women aged 50 and older who care for our loved ones as they age.
Capacity building is another service we extend to organizations. A great example is the Answer Key, a step-by-step guide with practical tools designed to help charter school operators successfully navigate the often difficult process of building or expanding charter schools.
Like several other CDFIs, Capital Impact also embraced impact investing in 2017 by creating Capital Impact Investment Notes as a means to drive more capital from socially conscious investors – big and small – into the communities that need it most.
All that individuals and communities want is the opportunity to succeed. When traditional financial institutions refuse to invest in communities, CDFIs offer a chance of living a dream that so many Americans hold: providing their children with a quality education so that they can achieve greater gains. Receiving quality health care and healthy food access so that they can enjoy many years with family. Having affordable housing to call home.
In supporting communities to reach these goals, Capital Impact and other CDFIs help create equitable and inclusive spaces that lead to communities of opportunity for all.
About Capital Impact Partners: Through capital and commitment, Capital Impact Partners helps people build communities of opportunity that break barriers to success. We deliver strategic financing, incubate new social programs, and provide capacity-building to help ensure that low-to-moderate-income individuals have access to quality health care and education, healthy foods, affordable housing, and the ability to age with dignity. A nonprofit community development financial institution, Capital Impact Partners has disbursed more than $2 billion to revitalize communities over the past 30 years. Our leadership in delivering financial and social impact has resulted in Capital Impact earning a “AA” rating from S&P Global “AA” and being recognized by Aeris since 2005 for our performance. Headquartered in Arlington, VA, Capital Impact Partners operates nationally, with local offices in Detroit, MI, and Oakland, CA. Learn more at www.capitalimpact.org.