The Siemens Foundation and Northern Trust announced a commitment of $10 million to two Community Development Financial Institutions (CDFIs) to support racial and social equity.
CDFIs are private financial institutions that support low-income and wealth communities across the country, disadvantaged people and communities join the economic mainstream. Siemens and Northern Trust have selected the Enterprise Community Loan Fund (ECLF) and Primary Care Development Corporation (PCDC) on Jan. 14.
The groups will provide support and capital in the real estate and health care industries.
“The Siemens Foundation’s mission and grantmaking are focused on economic, social and racial justice in the United States. Today, we bring our endowment into further alignment with that mission,” Barbara Humpton, chair of the Siemens Foundation Board of Directors and CEO of Siemens USA said in a statement. “CDFIs play a vital role in providing funds to communities too long ignored by capital markets, including the health care and real estate sectors within those communities.”
Through the ELCF, Enterprise Community Partners is developing and directing a national strategy to help Black, Indigenous and People of Color find success in the real estate industry. According to the Commercial Real Estate Development Association, Black men and women have been held back in the industry.
One percent of senior executive positions and mid-level managerial positions within commercial real estate belong to Black men. Less than 1% are held by Black women. Additionally, the association revealed a disproportionate percentage of Black households living in subsidized housing. Black households represent 46% of HUD-assisted housing. White households make up less than 15%.
The funds that will be allocated to the ELCF will work to create balance in the real estate industry. The development of affordable housing will be a key focus for the funds.
The PCDC will focus on identifying those most in need of medical care to provide innovative solutions for improving primary care access, quality and impact.
The funds from Siemens and Northern Trust will provide investment capital, technical assistance, policy advocacy and data analytics to boost primary healthcare and community based critical safety providers, including behavioral health clinics and substance abuse facilities to create healthier communities.
“Given the disproportionate impact of COVID-19 on the health and economic lives of BIPOC communities, affordable housing, business stabilization, and primary health care support is more important than ever,” said David Etzwiler, CEO of Siemens Foundation. “We’re honored to partner with ECLF and PCDC as they promote financial stability and health equity across the country.”
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