St. Louis CDFI Expands Small Business Lending to Advance Racial and Economic Equity

Roland Kamara, Membership Associate, Opportunity Finance Network

OFN member Urban Strategies, Inc. is furthering its commitment to wealth building in disinvested communities with new loans for entrepreneurs of color and emerging enterprises

Read time: 4 minutes

Last month, OFN hosted our 11^th annual Small Business Finance Forum in Chicago. The event brought together 600 mission-driven small business lenders, partners, and advocates from communities across the country to support the shared goal of helping our nation’s small businesses succeed.  

Following the 2024 forum’s success, this month’s member highlight features small business lender and OFN member Urban Strategies, Inc. (USI) and CDFI Director Julian Wyatt (pictured below).  

Based in St. Louis, Missouri, USI lends nationwide and is committed to advancing racial and economic equity by providing capital and other resources to entrepreneurs of color, including Black, brown, and Indigenous business owners. 

Learn more about USI, their partnership with the Truist Foundation, Wyatt’s “why” for working in this field, and how he landed at USI. 

How would you describe USI to members of the communities you serve?

 

USI is a national nonprofit organization that champions the cause of children and families in disinvested communities. We are committed to turning community revitalization into a powerful force for change. Understanding the delicate interplay of systemic change, equity-centered strategies, and community engagement, we focus on data-led, people-first approaches to uplift communities.

As a loan fund, the USI CDFI plays a pivotal role in funneling economic resources into disinvested communities. 

What is one unique aspect of USI?

 

Currently, 90% of USI’s staff are people of color. As an organization of color, we can talk candidly about our firsthand experiences as well as the experiences of marginalized and disenfranchised populations – knowing that our narratives are singular but not unique. Building upon our experiences, and aware of the challenges that hinder people of color, as a system, we collectively use our voices and sense of personal agency to counteract race inequities. 

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

 

I started my career at USI in 2018, right after completing my master’s degree. I was introduced to the organization by a mentor and first joined the team as Executive Fellow, where I provided programmatic support across our national portfolio of projects. Most of my professional experiences to date have been in the community development space.

My passion for this work is driven by my belief that all individuals should have access to wealth-building opportunities. 

In the past few years, what partnership do you feel had the biggest impact on the community you serve?

 

Last year, the USI CDFI received a $1.5 million grant from the Truist Foundation which allowed us to expand our CDFI operations into three new markets: Baltimore, Maryland; Norfolk, Virginia; and Fort Myers, Florida. With funding from Truist, we are communicating and demonstrating our commitment to wealth-building by providing low-cost capital and resources to entrepreneurs of color and emerging enterprises.  

Before receiving this grant, the USI CDFI was primarily providing pre-development loans and lines of credit to affordable housing developers. Grant dollars from the Truist Foundation have allowed us to launch a new loan product to help BIPOC entrepreneurs start, grow, and sustain their businesses.

The investment from the Truist Foundation is the largest grant our CDFI has received since obtaining our certification from the Department of Treasury. 

What is the biggest opportunity to create greater impact that USI is considering?

 

USI is currently a finalist for six Choice Neighborhood Initiative (CNI) implementation grants. CNI is a program of the U.S. Department of Housing & Urban Development that leverages resources to support locally driven strategies to transform disinvested communities.

If awarded these grants, USI will be able to connect Black and brown entrepreneurs and minority-owned firms to the revitalization project pipeline created by more than $2 billion of federal investments in mixed-income housing and neighborhood transformation projects. 

Stay up to date on everything USI on Facebook, Instagram, and LinkedIn. 

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Tags: Impact Investing, OFN Membership, Racial Equity, Small Business Finance Forum