Let’s Talk: What Does it Take to Increase Commercial Real Estate Lending to Entrepreneurs of Color?
LISC’s Entrepreneurs of Color Fund (EOCF) brought together lenders and partners to discuss the best strategies for leveraging capital and expertise to support our communities.
In August, LISC convened its first in-person Entrepreneurs of Color Fund (EOCF) training on commercial real estate (CRE) lending.
Why CRE? Because a major focus of the EOCF program is to grow the size of loans to entrepreneurs of color, not just the number of loans available. Larger loans allow owners to pursue growth strategies that would not otherwise be possible. With capital to purchase commercial property, entrepreneurs are better prepared to withstand economic shocks, build equity and create wealth that can be transferred across generations.
To advance those goals, LISC staff, local experts, and CDFI partners hosted training sessions focused on the technical components of CRE lending as well as on how to use the recently launched Entrepreneurs of Color Loan Fund (EOCLF), with an open dialogue on what CDFIs need from the fund. The Loan Fund purchases a participation interest of small business loans originated by EOCF partners, and thereby free up local capital for lending to entrepreneurs of color.
Attendees gained a better understanding of how to underwrite construction loans, collaborate with EOCF, and negotiate flexible financing to benefit small business owners. In fact, LISC is incorporating feedback from attendees into our EOCLF deal review and pre-approval processes, thanks to the insights presented.
EOCF partner Allies for Community Business shared its space at The Hatchery for the two-day training. The Hatchery is a food incubator and event space, and businesses like Trini’s Tasty Pastries and Ida’s Artisan Ice Cream fueled participants throughout the training.
Before departing, the attendees noted how valuable it is to network in-person with people from varied organizations. Be on the lookout for our next EOCF in-person event in Miami, Fla., early next year and for ongoing communications from EOCF and the Loan Fund.