A new Mercy Partnership Fund investment is expanding the impact of a longtime investee working to bring economic relief to communities of color.
MPF’s investment in the Racial Equity Investment Fund is the latest commitment in a longtime collaborative relationship with Inclusiv to promote financial inclusion and racial equity through community development credit unions (CDCUs). The Racial Equity Investment Fund, launched in 2020, deploys secondary capital to expand economic relief and to remove barriers to services for credit unions that are led by and/or serve communities of color.
River City Federal Credit Union in San Antonio, Texas, was the first CDCU recipient of a secondary capital loan through Inclusiv’s new Racial Equity Investment Fund. River City competes against predatory lenders in their community targeting the financially vulnerable, especially recent immigrants. The loan allowed River City to collaborate with local groups on a suite of products for people who are unbanked or credit invisible. The CDCU also originated $14.7 million in Paycheck Protection Program loans that helped save more than 1,900 jobs in some of San Antonio’s most economically disadvantaged communities.
“Secondary capital represents a huge opportunity for credit unions and their members in the years ahead. The investment from Mercy Investment Services means more loan deployment, more safe and affordable financial products and services offered, and more specialized lending by CDCUs and minority depository institutions,” says Cathie Mahon, Inclusiv’s president and CEO.
Inclusiv is one of 60 mission-driven organizations in Mercy Partnership Fund’s portfolio. Learn more on our website.