“NCIF has a 27-year track record of collaborating deeply with LIDAC communities and community lenders across the country,” said Saurabh Narain, president and CEO of NCIF. “This is a bold and innovative bid to help contribute to solving our nation’s climate transition by integrating underserved communities in investment decision making and to bring capital and technical assistance to pressing problems. Our data-driven approach will create an innovation hub that can be replicated around the country”
“The Rustbelt to Greenbelt initiative is another significant step that cements our status as a national leader in clean energy innovation,” said Governor JB Pritzker. “In partnership with the National Community Investment and Innovate Illinois, we have established good jobs, clean technology, economic development, and environmental justice as core tenets of our clean energy future. As long as I am Governor, Illinois will continue to be at the forefront in the fight against climate change.”
R2G’s unique strategy focuses on three key components:
- A deep and experienced national network of community lenders: Full national reach with direct local access and on-the-ground credibility in diverse communities can be leveraged to promote interventions across zero-emission transportation, clean energy generation, and net-zero-emissions housing. The eCorridor Financial Network (ECFN) is composed of 150+ CDFIs, MDIs, loan funds, nonprofits, and public and quasi public organizations. Between these community lenders and public entities in the combined networks of R2G; its members have approximately $100 billion in assets and operate in all 10 EPA regions across the rural and urban U.S. and tribal lands. Projects funded via R2G will invest in all three CCIA priority project categories with the triple goals of reducing leading sources of air pollution, creating quality jobs in LIDACs, and creating a local ecosystem for long term sustainability.
- Data-driven and community-centric approach: In order to optimize impact in areas with the greatest need, R2G has already identified over 25 high-potential industrial corridors across the U.S. These neighborhoods are home to over 35 million LIDAC residents and confront the heaviest environmental, health, and economic burdens from diesel-intensive transportation, inefficient buildings, and lack of clean energy generation. The coalition’s community-centric process for engaging LIDACs, environmental justice groups, and local community lenders will incorporate an understanding of the lived experiences of neighborhood residents.
- Aligning community needs and commercial goals to generate demand: Commercial partners are interested in sales of equipment and technologies and will tap into their significant financial capital and technical assistance. Combining the leverage extended by the ECFN and commercial partners is expected to drive an average of $25 in total community investment per $1 granted to community lenders. A growing list of commercial partners includes Ford, Siemens, ComEd, UL Solutions, Rivian, Lion Electric, Navistar, Orange EV, Reactivate and EVBox.
The EPA will award grants in March of next year, and R2G programs would commence in summer 2024.
About NCIF
National Community Investment Fund (NCIF) is a nonprofit private equity trust fund created in 1996 to capitalize and strengthen the mission-oriented banking sector. CDFI Banks and other mission-oriented banks provide financial products and services to businesses and individuals living in or serving low- and moderate-income communities around the country. NCIF is the largest private sector investor in the mission-oriented banking industry, with investments in 10% of all certified CDFI Banks. NCIF has approximately $220 million in assets under management and has received over $400 million of New Markets Tax Credits. As an impact investor, NCIF has a theory of change focused on strengthening anchor institutions in LMI communities for long term social, environmental, and financial returns for stakeholders. NCIF pioneered Social Performance Metrics for banks (www.bankimpact.org). Visit https://www.ncif.org/.
About Innovate Illinois
Innovate Illinois is a public-private coalition that was formed to drive the coordinated and robust effort in securing unprecedented levels of federal funding made available by landmark legislation including the Bipartisan Infrastructure Bill, the CHIPS and Science Act and the Inflation Reduction Act. Securing more federal funding for key technologies will propel the state to attract more companies and investors to grow Illinois’ vibrant tech ecosystem.
About P33
P33 is a privately-funded non-profit focused on driving inclusive, global tech and innovation leadership in Chicago. The organization’s mission is to help the Chicago region become an inclusive, globally top-tier technology hub. Born from the collaborative efforts of hundreds of business leaders in the private and public sectors, P33’s work is anchored in deep research and driven by a need to unlock the potential of the digital age to solve some of the toughest problems facing Chicago, such as equitable access to digital careers, talent retention, deep science commercialization, and gaps in the growth-stage startup ecosystem. Launched in 2019 by Penny Pritzker, former Secretary of Commerce and founder and chairman of PSP Partners, P33 is chaired by Chris Gladwin, CEO and co-founder of Ocient and Cleversafe. Learn more at p33chicago.com.
About World Business Chicago
World Business Chicago is a dynamic public-private non-profit organization dedicated to spearheading inclusive economic development across Chicago’s diverse 77 neighborhoods and throughout the Greater Chicagoland Economic Partnership, spanning seven counties in the region. Our commitment to driving inclusive economic development is demonstrated through our efforts to grow key sectors such as transportation, distribution, and logistics; manufacturing; healthcare and life sciences. Simultaneously, we nurture and support the region’s burgeoning innovation, startup, and venture ecosystem. Our leadership encompasses corporate attraction and retention, workforce and talent development, community empowerment, and the promotion of Chicagoland as a premier global business hub. Discover more at worldbusinesschicago.com, where opportunity meets innovation.
About Appalachian Community Capital
Appalachian Community Capital is a CDFI lending intermediary created to raise capital for its 34-member CDFIs and other mission-based lenders. The members, in turn, use ACC’s capital to fund small businesses in underserved areas in Appalachia, including businesses owned by women and persons of color. The members-many of which have been in operation for more than 20 years-and their affiliates manage over $2 billion in assets supporting economic development in Appalachia. To learn more about Appalachian Community Capital, please visit www.appalachiancommunitycapitalcdfi.org.
About Accion Opportunity Fund
AOF is the nation’s leading non-profit CDFI, providing affordable loans, coaching, technical assistance and support networks to underinvested, low-to-moderate income entrepreneurs that have been left behind by the mainstream financial system. More than 90% of its clients are businesses owned by women, people of color, and/or low-to-moderate-income entrepreneurs. Since its inception, AOF has provided over $1.3 billion in funding – $830 million to more than 30,000 small businesses across the country and $487 million in NMTC investments to help finance the construction or rehabilitation of 40 community facilities or Native American jobs projects, including community health centers, homeless services facilities, at-risk youth projects, and three phases of a Native American forest and salmon fishery restoration project.
About National Urban League
The National Urban League is a historic civil rights organization dedicated to economic empowerment in order to elevate the standard of living in historically underserved urban communities. Founded in 1910 and headquartered in New York City, the National Urban League spearheads the efforts of its local affiliates through the development of programs, public policy research, and advocacy. Today, the National Urban League has 92 affiliates serving 300 communities in 36 states and the District of Columbia, providing direct services that impact and improve the lives of more than two million people nationwide.
About The Chickasaw Nation
With more than 80,000 citizens, the Chickasaw Nation is a democratic republic with executive, legislative and judicial departments elected by its citizens. The treaty territory of the tribe includes 7,648 square miles of south-central Oklahoma and encompasses all or parts of 13 Oklahoma counties. The Chickasaw Nation contributes billions to the Oklahoma economy annually and employs nearly 14,000 workers.
Supporting Quotes:
- Dick Durbin (D-IL), U.S. Senator: “The ‘Rust Belts to Green Belts’ initiative aims to bridge historical divides and breathe new life into communities long burdened by industrial corridors.” “Should National Community Investment Fund’s and Innovate Illinois’ bid become reality, it’ll play a pivotal role in America’s climate transition, integrate underserved communities into the decision-making process, deliver capital and technical assistance to address pressing transportation challenges, and create an innovation hub that can serve as a beacon of progress across the nation.”
- Tammy Duckworth (D-IL), U.S. Senator: “Every American—no matter their race, income or zip code—deserves access to clean air and affordable energy. Far too often, the same—often underserved—communities are left behind and bear the brunt of the impacts of climate change, so I’m proud that Illinois is committed to helping deliver environmental justice to these communities. With support from this initiative and its commercial partners, we’re helping create impactful economic growth and good paying jobs in communities in need of investment.”
- Brad Henderson, CEO of P33: “Collectively we think about this money in a transformational way that will accelerate environmental change not just here in Illinois, but across the entire nation with a community and customer-centric approach.” “We’ve formed an experienced leadership network, have identified more than 25 U.S. industrial corridors that are home to over 25 million LIDAC residents, and brought on commercial partners that align with our vision.”
- Donna Gambrell, President and CEO of Appalachian Community Capital: “The Rust Belts to Green Belts initiative is really exciting for Appalachia, especially for coal-impacted communities. It has the power to directly and significantly affect the development of small businesses, create jobs and revitalize some of the most underserved areas in Appalachia.”
- Bill Anoatubby, Governor of the Chickasaw Nation: “This coalition is aimed at addressing many of the significant challenges to bringing jobs, environmental improvements, economic development, and wealth building to areas facing great need, yet still holding great potential for growth. We believe this broad coalition of business leaders, nonprofit organizations, and government agencies collaborating to achieve common goals serves as an example of how we can work together to enhance the quality of life today and build a brighter future for our children and grandchildren.”
- Marc Morial, President and CEO of National Urban League: “The National Urban League is honored to be part of this impressive coalition that is dedicating EPA resources toward making homes more energy efficient. We believe a focus on underserved African American and other marginalized communities will move many Americans to sustainability.”
- Luz Urrutia, President and CEO of Accion Opportunity Fund: “Accion is the largest non-profit CDFI lender to underinvested, low-to-moderate income borrowers who acquire heavy and medium duty trucks in the country. The focus of the Rust Belts to Green Belts initiative in electrification of small- and medium-sized fleet owners will reduce carbon emissions, generate income and create green jobs. We will use our network of community lenders to create an ecosystem for greenhouse gas reduction here in California and nationally.”
- Chris Meister, Executive Director of the Illinois Finance Authority/Climate Bank: “We’re proud to be a part of this impressive group effort to secure federal funds, which will help us capitalize more projects that combat climate change while also directly benefiting low-income and disadvantaged communities. With greater access to low-cost capital, public and private institutions will be able to further foster economic development, create green jobs, and improve the quality of life for the residents of Illinois.”
- Michael Fassnacht, President & CEO, World Business Chicago: “The submission of the Rust Belts to Green Belts proposal underscores Chicagoland’s commitment to propelling the region and Midwest into a commanding role as a global leader in clean technology. It also represents a unique opportunity to forge a distinctive, cross-sector, and inclusive alliance of industry, commercial and community leaders to drive catalytic growth across high-potential sectors. We are steadfast in our belief that this groundbreaking initiative will not only herald transformative change in our local communities but will also be a significant contributor to a sustainable future on a national scale.”
Media Contact
Ben Pavlovic, National Community Investment Fund, 1 3129613919, [email protected], https://ncif.org
SOURCE National Community Investment Fund
