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How to Build a Mission-Driven Lending Business

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There are lenders and then there are mission-driven lenders. And if you get excited thinking about the latter, there’s no reason why you can’t build a business around this. The key is to develop a pragmatic approach that allows you to grow in a very specific trajectory.

What is a Mission-Driven Lender?

Mission-driven lenders, also referred to as Community Development Financial Institutions (CDFIs), are organizations that commit to working with communities and businesses that traditional financial institutions historically under-served. This includes small businesses, non-profits, and entrepreneurs in low-income communities that lack resources. A mission-driven lender can be a credit union, community bank, nonprofit organization, or even a venture capital fund. 

“They typically raise the money they lend through grants, low-interest loans, foundations, the government or banks looking to satisfy Community Reinvestment Act requirements,” Venturize explains. “CDFIs are very focused on community, targeting their funding to small businesses, microenterprises, nonprofit organizations, commercial real estate and affordable housing.”

Some mission-driven lenders even have their own revolving loan funds that are targeted toward very specific regions, states, or industries. They make low-interest loans to companies in these areas that would not otherwise qualify for bank loans. This type of lending is usually accompanied by mentoring and other support to increase their chances of being successful. 

CDFIs often participate in 7(a) loans through the Small Business Administration’s Community Advantage Program. This allows them to award loans up to $250,000. Others use venture capital funds that may or may not provide equity in return. 

4 Tips to Becoming a Mission-Driven Lender

Every mission-driven lender has its own specific focus. However, they’re all organically constructed with the purpose of bettering specific communities by making it easy for good ideas to flourish. If you’re interested in living out this goal as a mission-driven lender, here are a few specific things you need to do.

 

  • Make Sure You Know Your Why

 

While all mission-driven lenders have the same overarching purpose, the specific goals, vision, and mission of each lender will differ. It’s imperative that you get clear on the why behind what you’re doing.

Entrepreneur Michelle Sun asks, “Why do you want to build what you are building? What does success look like to you? Is it measured by impact, financial success or flexibility of your work hours? Every entrepreneur has a different ‘why.’ Get clear on these at the get-go, and refer back to them along your journey.”

Once you know your why, you can move on to other aspects – like surrounding yourself with other people who believe in your mission.

 

  • Build a Team of Like-Minded People

 

Diversity is good when building a team. You want people who think differently, come from different backgrounds, and bring unique strengths to the table. However, this is one business where you need like-minded people. When we use the term “like-minded,” we don’t mean everyone thinks exactly the same. Instead, we mean everyone is on the same page regarding the mission, goals, and desires. Everyone has a passion for seeing underserved communities and entrepreneurs elevated. That’s the goal.

 

  • Use the Right Tools

 

So much of modern lending is about technology and automation. And as a mission-driven lender, you need to make sure you’re using the right tools. In other words, you need tools that support and align with your mission. You might have to look a little harder to find these tools but, believe it or not, they exist.

SPARK loan origination software, for example, is designed to work with mission-driven lenders. Features include non-profit pricing and program support. They’re also the only loan origination technology company in the industry that operates as a Public Benefits Corporation.

 

  • Put Yourself Out There

 

You can build the best mission-driven lending practice in the industry, but if the community doesn’t know you, it’s a waste of time and money. Make sure you’re putting yourself out there. This includes grassroots marketing, advertising, and constant networking. Make your name known!

Get Started Today

Mission-driven lenders exist to close the financial chasm and fill in the opportunity gaps that exist in most communities. If you’re interested in making your community or industry a better place, being a mission-driven lender is a great place to start. And if you build your organization with a strong foundation, good things will happen for you!

The idea of Bigtime Daily landed this engineer cum journalist from a multi-national company to the digital avenue. Matthew brought life to this idea and rendered all that was necessary to create an interactive and attractive platform for the readers. Apart from managing the platform, he also contributes his expertise in business niche.

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Business

Turning Tragedy into Triumph Through Walking With Anthony

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On the morning of February 6, 2010, Anthony Purcell took a moment to admire the churning surf before plunging into the waves off Miami Beach. Though he had made the dive numerous times before, that morning was destined to be different when he crashed into a hidden sandbar, sustaining bruises to his C5 and C6 vertebrae and breaking his neck.

“I was completely submerged and unable to rise to the surface,” Purcell recalls. “Fortunately, my cousin Bernie saw what was happening and came to my rescue. He saved my life, but things would never be the same after that dive.”

Like thousands of others who are confronted with a spinal cord injury (SCI), Purcell plunged headlong into long months of hopelessness and despair. Eventually, however, he learned to turn personal tragedy into triumph as he reached out to fellow SCI victims by launching Walking With Anthony.

Living with SCI: the first dark days

Initial rehabilitation for those with SCIs takes an average of three to six months, during which time they must relearn hundreds of fundamental skills and adjust to what feels like an entirely new body. Unfortunately, after 21 days, Purcell’s insurance stopped paying for this essential treatment, even though he had made only minimal improvement in such a short time.

“Insurance companies cover rehab costs for people with back injuries, but not for people with spinal cord injuries,” explains Purcell. “We were practically thrown to the curb. At that time, I was so immobile that I couldn’t even raise my arms to feed myself.”

Instead of giving up, Purcell’s mother chose to battle his SCI with long-term rehab. She enrolled Purcell in Project Walk, a rehabilitation facility located in Carlsbad, California, but one that came with an annual cost of over $100,000.

“My parents paid for rehabilitation treatment for over three years,” says Purcell. “Throughout that time, they taught me the importance of patience, compassion, and unconditional love.”

Yet despite his family’s support, Purcell still struggled. “Those were dark days when I couldn’t bring myself to accept the bleak prognosis ahead of me,” he says. “I faced life in a wheelchair and the never-ending struggle for healthcare access, coverage, and advocacy. I hit my share of low points, and there were times when I seriously contemplated giving up on life altogether.”

Purcell finds a new purpose in helping others with SCIs

After long months of depression and self-doubt, Purcell’s mother determined it was time for her son to find purpose beyond rehabilitation.

“My mom suggested I start Walking With Anthony to show people with spinal cord injuries that they were not alone,” Purcell remarks. “When I began to focus on other people besides myself, I realized that people all around the world with spinal cord injuries were suffering because of restrictions on coverage and healthcare access. The question that plagued me most was, ‘What about the people with spinal cord injuries who cannot afford the cost of rehabilitation?’ I had no idea how they were managing.”

Purcell and his mother knew they wanted to make a difference for other people with SCIs, starting with the creation of grants to help cover essentials like assistive technology and emergency finances. To date, they have helped over 100 SCI patients get back on their feet after suffering a similar life-altering accident.

Purcell demonstrates the power and necessity of rehab for people with SCIs

After targeted rehab, Purcell’s physical and mental health improved drastically. Today, he is able to care for himself, drive his own car, and has even returned to work.

“Thanks to my family’s financial and emotional support, I am making amazing physical improvement,” Purcell comments. “I mustered the strength to rebuild my life and even found the nerve to message Karen, a high school classmate I’d always had a thing for. We reconnected, our friendship evolved into love, and we tied the knot in 2017.”

After all that, Purcell found the drive to push toward one further personal triumph. He married but did not believe a family was in his future. Regardless of his remarkable progress, physicians told him biological children were not an option.

Despite being paralyzed from the chest down, Purcell continued to look for hope. Finally, Dr. Jesse Mills of UCLA Health’s Male Reproductive Medicine department assured Purcell and his wife that the right medical care and in vitro fertilization could make their dream of becoming parents a reality.

“Payton joined our family in the spring of 2023,” Purcell reports. “For so long, I believed my spinal cord injury had taken everything I cared about, but now I am grateful every day. I work to help other people with spinal cord injuries find the same joy and hope. We provide them with access to specialists, funding to pay for innovative treatments, and the desire to move forward with a focus on the future.”

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