$5 Million Award Will Help Invest in Underrepresented Communities of Color
PHOENIX — A much-needed $5 million “shot in the arm” from philanthropist MacKenzie Scott will enable Chicanos Por La Causa Prestamos CDFI to infuse crucial capital into Latino and other underserved communities.
Prestamos, CPLC’s mission-driven lending division, will seek to leverage the $5 million award to garner an additional $20 million in accessible capital for underrepresented communities and business owners in Arizona, Nevada, New Mexico, Texas, and California.
“We are motivated to invest these funds in our community to help fuel the economic recovery and create jobs supporting families that are suffering the debilitating effects of the pandemic. COVID-19 disproportionally impacted black and brown communities,” said David Adame, President & CEO of Chicanos Por La Causa.
Since the pandemic began, CPLC Prestamos has helped 1,028 businesses, already deploying $49.5 million in capital and saving 4,797 jobs. The $5 million award will enhance and expand such efforts.
“CPLC Prestamos exists to ensure that vital capital resources are invested in low-income communities of color. Now more than ever, investment is necessary to support small business owners. We are committed to driving economic empowerment to address racial inequities and build wealth in our communities,” said Jose Martinez, President of Prestamos CDFI.
Investing in small businesses not only can help a family endure this catastrophic crisis, the infusion of capital can empower whole communities and continue positive generational change instead of thwarting or erasing any advancements made since the Great Recession, Adame noted.
The $5 million award is part of Scott’s commitment to help people in dire need due to the health and economic crisis caused by the pandemic. Scott, has given nearly $4.2 billion to 384 organizations over the last four months.
Explaining her motivation in a blog, Scott wrote: “This pandemic has been a wrecking ball in the lives of Americans already struggling. Economic losses and health outcomes alike have been worse for women, for people of color, and for people living in poverty. Meanwhile, it has substantially increased the wealth of billionaires.”
CPLC Prestamos is committed to continuing to invest in Latino and other underrepresented communities, and to seek similarly dedicated partners who share in the belief of economic equity and empowerment through entrepreneurship.
CPLC Prestamos is an award-winning Community Development Financial Institution (CDFI) and Community Development Entity (CDE) that has provided small business loans and high-quality technical support services to business owners in underserved communities since 1980.