Massachusetts CDFI Tackles Wealth Gap Through Access to Capital

Roland Kamara, Membership Associate, Opportunity Finance Network

OFN member Mill Cities Community Investments invests in emerging developers, homeownership, environmental justice, and more to build generational wealth. 

Estimated reading time: 5 minutes

As we celebrate National Black Business Month, hear from Glynn Lloyd, Executive Director at OFN member Mill Cities Community Investments (MCCI), the first Black-led community development financial institution (CDFI) in Massachusetts. 

Latino and immigrant leaders founded MCCI in 2008 to bridge the gap in capital access in low-to-moderate income and other underinvested communities by providing affordable financing for local individuals, including entrepreneurs and aspiring homeowners. Headquartered in the city of Lawrence, MCCI has historically served Merrimack Valley cities in the northeastern part of Massachusetts. MCCI also provides services statewide and in neighboring states. 

Learn more about MCCI, Lloyd’s reason for being a part of the community development industry, his views on challenges and opportunities facing the CDFI industry, including climate resiliency financing, and more.

MCCI Executive Director Glynn Lloyd

How do you describe MCCI to members of the community you serve?

 

We’re a community-based financial institution that deploys resources where they don’t usually go — to historically disinvested individuals and their communities. Through loans, investments, strategic advice, and advocacy for small businesses and homeowners in Massachusetts and select surrounding states, we’re building generational wealth to close the racial wealth gap. 

What’s your “why” for working in the community development space, and how did you end up at MCCI?

 

We have a challenging history in this country, which has not been fair for a large swath of the population. I believe that our financial institutions are effective platforms to address historical inequities around lack of access to capital and to create wealth for individuals and communities. 

I came to MCCI from the Foundation for Business Equity, which was part of a regional bank committed to small business growth for Black and Latinx entrepreneurs. There was an opportunity for our organization to merge with MCCI, an existing CDFI, to round out our services. We took the opportunity to join our unique high-touch advisory services for small businesses with our ability to deploy capital under one roof. 

What type of opportunities is MCCI considering to create greater impact?

 

There’s a huge gap in access to capital, and we’re trying to help fill that and drive growth. We have a lot of innovation happening here at MCCI. We’re diving deeper into supporting emerging BIPOC and women developers. We are working closely with the City of Boston to help convert vacant parcels into affordable homeownership opportunities by providing pre-development capital and technical assistance for these emerging developers. We’re also continuing to grow the Business Equity Investment Fund, providing patient capital to our small businesses to support their long-term growth. 

I’m also really excited about the tools we’re implementing for low- to moderate-income homeowners to become more energy-resilient. The reason these infrastructure upgrades are so important is that homeownership is the number one factor in building wealth. If our customers can improve their homes, they can build equity and, in turn, drive greater wealth. There are interesting studies showing that as wealthier communities become more climate resilient, lower-income communities suffer negative impacts if they’re not keeping pace with sustainability upgrades. For us, that ties back to environmental justice. Our communities need this access for both environmental and economic reasons. 

What is a challenge facing the CDFI industry right now, and how can the industry rise to meet that challenge?

 

Our supply of capital. Most of us are not depositories, so where do we get capital? That’s compounded by the increased cost of capital due to inflation and higher interest rates. To meet this challenge, we have to get bold. There are lots of conversations around program-related investments and donor-advised funds. I also would love to see the Federal Reserve open a side door for CDFIs and give us a different avenue for discounted capital.

In one word, describe MCCI’s relationship with OFN. What made you choose that word?

 

Partnership. When I went to my first OFN conference, it was transformational. Being in the room with so many other CDFIs gave me a real understanding of the work these institutions were doing. OFN has been a translator for us about how this industry works, and we also have the strength of the full OFN network. We’re working toward similar goals and can brainstorm on challenges. For example, in our climate resiliency work, we were connected via the annual OFN conference to folks at an innovative Florida CDFI for advice from a pilot they did. And when it comes to advocacy, it’s almost like we’re one voice. OFN is able to leverage its membership to go after larger resources, which in turn comes back to its membership for greater local community impact.  

Thanks to Glynn and the MCCI team for all the amazing work they do every day!  

Read more about MCCI’s work on OFN’s Impact Stories page. You can also stay up to date with MCCI on LinkedIn, Facebook, X, and Instagram. 

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Tags: Affordable Housing, Green or Climate Finance, Member Highlight, OFN Membership, Small Business