Catalyzing The Next Generation of Community Development Finance

Traditional community development finance tools are increasingly outdated and insufficient in addressing the critical needs of many moderate- and low-income communities. Innovative investment approaches will help build community programs that grow local economies, promote thriving neighborhoods, and present investors with expanded opportunities for financial and social returns. This Working Group will bring together mainstream investors and national and community financial institutions with foundations, nonprofits, and government representatives to identify actionable approaches that can transform and catalyze the community investing market. Specifically, participants will focus on strategies to accelerate the development and deployment of investment products and platforms, improve industry education, and advance systems to scale successful and integrated community development programs.

Subtopics

Promoting Tools for a Robust Market Patient, flexible capital and higher-risk investments and equity are in limited supply, despite an acute demand. New financing tools and products are needed to strengthen the marketplace and help better align the expectations and interests of private investors with the concrete financial needs of community development initiatives.

Designing a U.S. Social Investment Guarantee Fund A new social investment guarantee vehicle will aggregate various capital resources to provide strategic credit enhancements and leverage private investment for promising ventures with demonstrated financial and social returns. A properly structured and capitalized institution of this type could ensure efficient and effective capital deployment.

Strengthening Performance Data Today’s community investing market is restricted by a critical lack of reliable and standardized investment data. With the development of robust performance data and clear channels to disseminate this information to a range of investors, markets will strengthen and investments can flow.

Scaling Collaborative Community Solutions Breaking down the traditional silos of community development is a promising and cost-effective strategy for deepening impact across social indicators. Specific infrastructure, capacity, and investments are necessary for investors, municipalities, intermediaries, and local service providers to cooperatively design and implement integrated programs that more effectively and efficiently meet community needs.