Racial wealth inequality has been a long-standing problem in the United States. Demographic data shows that the racial wealth gap has grown over the past few decades as a direct result of exclusionary policies and practices. LISC SI employs a variety of strategies focused on directly or indirectly investing in minority communities to reduce this widening racial wealth gap.
While the wealthiest Americans have benefited from tremendous economic growth, others have suffered as typical worker wages have lagged significantly behind. By all measures of median income, net worth, and economic mobility, the most significant disparity is experienced by the black population. According to the US Federal Reserve, White families have a median net worth that is almost 10x higher than that of Black households.
This is a result of decades of economic discrimination and the lack of access and opportunity for the next generations to advance.
The recent 2020 wave of Black Lives Matter protests has drawn renewed attention to the racial wealth gap and its respective call to action. There are many ways to invest to advance racial equity. LISC has been working in the space for 40 years and has invested billions in communities in need.
While many CDFI’s have programs geared towards underserved communities, LISC Strategic Investments provides capital directly into the hands of minority-led businesses, VC funds, black-owned banks and other impact strategies aimed to reduce the racial wealth gap.
LISC Strategic Investment employs a myriad of innovative strategies to effect meaningful and sustainable change. By combining traditional methods of equity, debt, and grants, with creative new impact funds, programs, and loans, we can make a difference that will change lives for generations to come.
We Invest In:
Entrepreneurs of Color
Real Estate Developers of Color
Depositories at minority-owned banks
Impact treasury strategies
Minority and women-led impact funds
Minority-owned institutions & CDFIs