Common Future Acquires Community Credit Lab, Expanding Access to and Control of Financial Capital in Historically Excluded Communities
OAKLAND, Calif., Sept. 20, 2022 /CorporatePRwire/ — Oakland-based Common Future announced that it is acquiring Seattle-based Community Credit Lab (CCL). Community Credit Lab will exist as an affiliated entity under Common Future. This acquisition would bring together two field-leading organizations known for ensuring those closest to the problem lead the development of solutions and for utilizing capital to build economic power in and with those communities.
Founded in 2001, Common Future advances racial and economic equity by incubating, co-creating, and funding community-driven solutions, and influencing key sectors to shift power and capital to those communities. Founded in 2019, Community Credit Lab is at the forefront of community-first investing, designing lending programs that equip community organizations with the necessary infrastructure and institutional partnership to control and deploy capital in ways that center their needs and ambitions. To date, Common Future has shifted $280 million toward community investment across the United States, and Community Credit Lab has secured total patient capital receipts and commitments of $6 million in impact investments, recoverable grants, and philanthropic funding enabling CCL to facilitate $1.7 million in total approved affordable consumer and small business loans across the United States.
With this acquisition there will be additional capacity and infrastructure for community-driven capital deployment initiatives and to develop ongoing analysis of what works in order to push for change among funders and investors.
“We envision a world where everyone—no matter their race or class—has power, choice, and ownership in the economy. Yet we know many people and communities are excluded not only from opportunities to build but also from the crafting of solutions that directly impact them, which only perpetuates inequities,” said Rodney Foxworth, Common Future’s CEO. “There are very few organizations that work directly with community partners to facilitate capital on behalf of those most excluded from our economic and financial systems–and Community Credit Lab is best-in-class.”
Common Future and Community Credit Lab share a common pursuit of mobilizing capital and influence to build economic power and self-determination in excluded communities. In 2021, both organizations collaborated to launch Common Future’s Character Based Lending pilot, expanding access to credit in historically excluded communities by using non-traditional means to assess creditworthiness. Common Future raised $800,000 and Community Credit Lab was the facilitating partner, providing design support services to local partners and the infrastructure to deploy and manage funds at the direction of these partners. Through this acquisition, they will continue collaborating on such initiatives and engaging a growing cadre of funders and investors on what it takes to shift power and control over capital to community wealth building institutions.
“Community Credit Lab’s goal has been to make credit affordable and accessible for communities that face discrimination through Loan Programs designed to center borrowers’ experiences and reduce or eliminate the poverty premium,” said Sandhya Nakhasi, Co-Founder and Executive Director of CCL. “We view our role as a facilitator, from following the guidance of the community in building Lending Programs to raising impact-first capital needed to pilot these programs; and as a platform to generate and share in dialogue about the systemic harm of the financial system and how we may influence transformation at scale. Common Future has the history, relationships, know-how, and, most importantly, trust required to truly meet the moment. We are thrilled to build on the powerful relationship we already have.”
Rodney Foxworth will continue in his role as CEO of Common Future. Community Credit Lab’s four staff members—including its two Co-Founders Sandhya Nakhasi, Executive Director, and
Ryan Glasgo, COO— will become employees of Common Future and Common Future will retain Community Credit Lab as an affiliated entity.
About Common Future:
Common Future works to close the racial wealth gap. As a Black-led, multiracial organization, our diverse team of strategists, community organizers, financial activists, and policy enthusiasts provides capital, operational support, and strategic partnership to budding solutions addressing racial and economic injustice. This work has helped wealth-holders shift $280 million to communities of color, driving capital and attention to more than 200 community wealth-building institutions. Learn more about Common Future.
About Community Credit Lab:
Acknowledging the pervasive inequities of the current system, Community Credit Lab (CCL) seeks to remove structural barriers and reverse the poverty premium. To actualize economic justice, CCL shifts power by facilitating capital through affordable, customized lending programs at the direction of community partners. These Lending Partners represent their communities and the people who repeatedly face discrimination in the traditional financial system. CCL provides loan design support, loan management, loan servicing, and capital facilitation to support individuals and small business owners nationally to achieve their economic goals on their terms. Learn more about Community Credit Lab.
Contact:
Allison Jones, allison@commonfuture.co
SOURCE Common Future
