Washington, D.C. - According to an Aspen Institute report (2015) regarding the racial wealth gap, the lack of wealth in Latino and African-American communities is related to the lack of businesses and financial assets. On September 27th, 2016, the U.S. Department of the Treasury announced its awardees for its Community Development Financial Institution Fund (CDFI Fund) program. The Latino Economic Development Center (LEDC) was one of three organizations in DC and one of two operating in Baltimore who received this award. LEDC will be receiving $500,000 from the Treasury Department to support its small business micro-lending efforts in the DMV region.
The same week, on September 30th, 2016, LEDC also learned that it had been awarded $400,000 from the Department of Health and Human Service's (HHS) Community Economic Development (CED) program to provide local DC businesses with financing in order to create jobs with living wages for low-income DC residents.
This is a historic time for LEDC as it is the first time it has secured two federal grants of this size in one year, and the first time it has been awarded Community Economic Development funding through HHS. "We are so excited and honored to have been selected as 2016 CDFI Fund and CED recipients. The new businesses and jobs that will result from LEDC's financing efforts will help low income residents advance economically, strengthen their financial self-sufficiency, and contribute to the revitalization of Washington, D.C and Baltimore City, MD neighborhoods," said LEDC Executive Director, Marla Bilonick.
About the CDFI Fund:
Since its creation in 1994, the CDFI Fund has awarded more than $2.2 billion to CDFIs, community development organizations, and financial institutions through the CDFI Program, the NACA Program, the Bank Enterprise Award Program, the Capital Magnet Fund, and the Financial Education and Counseling Pilot Program. To learn more about the CDFI Fund and its programs, please view the Fact Sheet or visit the CDFI Fund's website at www.cdfifund.gov.
About Community Economic Development:
The Community Economic Development (CED) program is a Department of Health and Human Services, Office of Community Services (OCS) initiative designed to address the economic needs of low-income individuals and families through the creation of sustainable business development and employment opportunities.
Learn more about CED.
Nearly 66% of Baltimore families of Color Lack the Savings to Sustain a Job Loss or Other Emergency
New report calls for greater investment to address the city's racial wealth divide
Baltimore, M.D. - A new report from the Corporation for Enterprise Development (CFED) reveals a troubling racial wealth gap in Baltimore. The Racial Wealth Divide in Baltimore finds that 66% of households of color are "liquid asset poor," meaning they do not have enough savings to sustain themselves at the poverty level for just three months if faced with a sudden job loss, medical emergency or other income disruption. That compares to 32% of White households, according to the report.
Additionally, the report finds that households of color are three times more likely to be unemployed and three times more likely to live in poverty. The greatest disparities are between White and Black households. The median income among Black households is $33,801, compared to $62,751 for White households, $50,531 for Asian households and $44,116 for Latino households.
With the release of the report, CFED's Racial Wealth Divide Initiative is joining with JPMorgan Chase & Co. and the Center for Public and Nonprofit Leadership at Georgetown University's McCourt School of Public Policy to announce the launch of the second phase of the Building High Impact Nonprofits of Color project, which will help strengthen the capacity of local nonprofits to expand economic opportunity in Baltimore and across the country.
"We will be working in Baltimore to build the capacity of local nonprofits led by people of color serving people of color, as these organizations are on the frontlines of addressing the most pressing needs of underserved Baltimoreans," said Dedrick Asante-Muhammad, Director of the Racial Wealth Divide Initiative at CFED.
JPMorgan Chase provided financial support to CFED to develop the report and conduct trainings to equip more than 20 organizations to launch, expand or improve wealth-building initiatives for communities of color nationwide.
Eleven nonprofits were competitively selected in two cities-Chicago and Baltimore-to participate in the second phase of the project. In Baltimore, the selected nonprofits include Bon Secours Community Works, Center for Urban Families,Druid Heights Community Development Corporation, Inc., Latino Economic Development Center, Muse 360 Arts and Urban Alliance. In Chicago, the selected nonprofits include Chinese Mutual Aid Association,Gads Hill Center,Greater Auburn-Gresham Development Corporation,North Lawndale Employment Network and Spanish Coalition for Housing. These organizations join cohorts in Miami and New Orleans, the two cities that were part of the initial phase of the project.
"LEDC is excited to participate in the 2017 cohort of CFED's Racial Wealth Divide initiative," said Marla Bilonick, Executive Director, Latino Economic Development Center. "The program is a great opportunity for us to build our capacity and strengthen our networks as we deepen our service to Latinos and other underserved populations in Baltimore."
Some of the report's other key findings include:
For more information on CFED's Racial Wealth Divide Initiative, click here.
###CFED's work makes it possible for millions of people to achieve financial security and contribute to an opportunity economy. We scale innovative practical solutions that empower low- and moderate-income people to build wealth. We drive responsive policy change at all levels of government. We support the efforts of community leaders across the country to advance economic opportunity for all. Established in 1979 as the Corporation for Enterprise Development, CFED works nationally and internationally through its offices in Washington, D.C.; Durham, North Carolina, and San Francisco, California