First-of-its-kind fund will support Enterprise’s Equitable Path Forward initiative
NEW YORK (April 28, 2021) – Bank of America Community Development Banking, in partnership with Enterprise Community Partners, is investing $60 million – $30 million in loans and $30 million in equity financing – to support Enterprise’s Equitable Path Forward, a five-year initiative to help facilitate racial equality in housing. The investment will increase access to capital and career opportunities for BIPOC (Black, Indigenous and People of Color) leaders developing multi-family, affordable and supportive housing across the country.
Bank of America Community Development Banking is the first bank to launch a fund with dedicated financing and support to BIPOC developers. It will partner with Enterprise to provide much-needed Low Income Housing Tax Credit capital and debt financing to directly source, structure and close deals with BIPOC developers, especially emerging BIPOC developers seeking both flexible capital and technical assistance.
This commitment complements Bank of America’s $1.25 billion, five-year commitment to help advance racial equality and economic opportunity in Black, Hispanic-Latino and Asian communities with a focus on affordable housing, health and healthcare, jobs/reskilling and small business.
“This effort further accelerates the bank’s work already underway to address racial equality and economic opportunity through direct actions, investments and work to catalyze similar efforts across the private sector,” said Maria Barry, Community Development Banking national executive at Bank of America. “Our goal with this initiative is to play a key role in helping to drive new pipeline and financial capabilities of BIPOC developers.”
Both Enterprise and Bank of America will leverage their national networks and resources to help BIPOC developers deepen and advance relationships with industry stakeholders and local government agencies.
“Together with Bank of America Community Development Banking, we will work to close racial disparities by investing in housing providers who are on the ground and engaged with their communities, yet lack financial and social capital,” said Priscilla Almodovar, chief executive officer, Enterprise. “To do so, we need to rebalance both power and profit in our industry. Today, less than two percent of real estate management firms are minority-owned, yet Black households comprise nearly 50% of federally-assisted housing and make up 13% of the nation’s population. Enterprise will leverage Bank of America’s investment and our own capital, expertise and unique end-to-end platform to do our part. Thanks to the Bank of America team for their vital support of our efforts to make home and community steppingstones to more.”
Bank of America
Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 66 million consumer and small business clients with approximately 4,300 retail financial centers, including approximately 2,700 lending centers, 2,600 financial centers with a Consumer Investment Financial Solutions Advisor and approximately 2,400 business centers; approximately 17,000 ATMs; and award-winning digital banking with approximately 39 million active users, including approximately 31 million mobile users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and approximately 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange. Learn more at about.bankofamerica.com, and connect with us on Twitter (@BofA_News).
Equitable Path Forward
Equitable Path Forward is a five-year, $3.5 billion nationwide initiative to help dismantle the deeply-rooted legacy of racism in housing – from the types of homes that are built, where they’re built, who builds them, and the wealth that is generated from them. The multipronged initiative establishes an equitable path forward for BIPOC and other historically marginalized housing providers by filling the gaping capital gap from decades of systemic racism, strengthening providers through advisory services and other nonfinancial support and creating new career pathways to diversify leadership in real estate.