Mercy Investment Services Deepens Commitment to Financial Inclusion Initiatives Through the Inclusiv Racial Equity Investment Fund
New York, NY - September 16 - Inclusiv and Mercy Investment Services are pleased to announce Mercy’s investment in the Inclusiv Racial Equity Investment Fund. This latest commitment continues Inclusiv and Mercy’s longtime collaborative relationship, which began in 2000, to promote financial inclusion and racial equity through community development credit unions (CDCUs).
The Racial Equity Investment Fund, launched in 2020, deploys secondary capital to expand economic relief and to remove barriers to services for credit unions that are led by and/or serve communities of color. Secondary capital builds institutional net worth, enabling credit unions to leverage deposits and to increase lending to minority-owned businesses, homeowners, and consumers. Credit unions can expand their impact in providing access to capital and new financial opportunities to people who are traditionally underserved and underbanked.
“Since their founding in 1827, the Sisters of Mercy have ministered to those overlooked or forgotten by society. Credit unions share this same mission and are a vital resource for those who are typically underserved by traditional financial institutions,” says Sarah Smith, director of Mercy Partnership Fund, the community investing program of Mercy Investment Services. “Mercy has invested in Inclusiv for more than 20 years because we believe in the positive impact of credit unions and their responsiveness to the changing needs of the people they serve. The Racial Equity Investment Fund is a perfect example of this, and we’re proud to be an early investor.”
“Inclusiv is so excited to join with longtime partner and investor Mercy Investment Services to grow the necessary capital to help credit unions address systemic inequity in financial service to low-income and communities of color,” says Cathie Mahon, Inclusiv’s President and CEO. “Secondary capital represents a huge opportunity for credit unions and their members in the years ahead. The investment from Mercy Investment Services means more loan deployment, more safe and affordable financial products and services offered, and more specialized lending by CDCUs and minority depository institutions.”
These investments help credit unions such as the River City Federal Credit Union to compete against the high concentrations of predatory lenders targeting the financially vulnerable, especially recent immigrants, in their San Antonio, Texas community. As a community development financial institution (CDFI), Minority Depository Institution (MDI), and a Juntos Avanzamos (“Together We Advance”) designated credit union, River City FCU was also the first recipient of a secondary capital loan through the Racial Equity Investment Fund.
River City FCU worked with the Mexican Consulate and the YWCA to design a suite of products for people who are unbanked or credit invisible. Due to concerns about the impact of the pandemic on local businesses and communities of color, the credit union dedicated themselves to the Paycheck Protection Program (PPP). River City FCU originated $14.7 million in PPP loans, helping save more than 1,900 jobs in some of San Antonio’s most economically disadvantaged communities. With secondary capital from the Racial Equity Investment Fund, River City is reaching the financially underserved by building upon strategic partnerships with community partners.
Interested supporters with questions about the Inclusiv Racial Equity Investment Fund can contact Cathi Kim, Director of Inclusiv/Capital, at firstname.lastname@example.org.