Economic Opportunity for Everyone: The Role of CDFIs in Advancing and Building Opportunity

The Sixth Annual Jeremy Nowak Memorial Lecture, a collaboration between the Reinvestment Fund and the Penn Institute for Urban Research, brought together a panel of Community Development Financial Institution (CDFI) leaders to explore their pivotal role in fostering economic opportunities for all. The event, held in honor of the late Jeremy Nowak, a visionary in urban economic development, served as a platform for thought-provoking discussions on innovative strategies employed by CDFIs to combat economic disparities and revitalize communities.

Don Hinkle-Brown, President and CEO of the Reinvestment Fund and Jeremy Nowak's successor, commenced the lecture by paying homage to Nowak's enduring legacy and the transformative impact of his work on Philadelphia's communities. He set the stage for an engaging discourse rooted in both tradition and forward-thinking approaches to urban development.

Karen Fegely, Deputy Commerce Director from the City of Philadelphia, offered valuable insights into Mayor Cheryl Parker's administration's economic development plans, emphasizing their alignment with the mission of CDFIs. Fegely highlighted the Mayor's dedication to streamlining regulatory processes to encourage entrepreneurship and business growth, essential elements for economic revitalization. She also underscored the importance of partnerships between the city and CDFIs in achieving sustainable urban development and expanding economic opportunities for all Philadelphians.

Mark Pinsky, the moderator and founding partner of CDFI Friendly America, provided a comprehensive overview of CDFIs, describing them as private, public-purpose financial institutions that operate on a business model that is profitable but not profit-maximizing. He emphasized the extensive reach and impact of CDFIs across the United States, particularly in Philadelphia, where they have invested over a billion dollars, with a significant portion supporting minority communities.

The panel featured four distinguished speakers: Della Clark, President of The Enterprise Center; Jodie Harris, President of Philadelphia Industrial Development Corporation (PIDC); Mihailo Temali, CEO of Build from Within Alliance; and Don Hinkle-Brown. Each panelist shared insights into their organization's role in driving economic opportunity and the innovative approaches they employ.

Della Clark discussed The Enterprise Center's evolution from a program-centric model to a capital and investment center, focusing on building their clients' balance sheets and financial strategies. She emphasized the importance of understanding the difference between underserved and low-wealth communities and the need for a combination of debt and equity to support business growth.

Jodie Harris introduced PIDC's multifaceted role in Philadelphia's economic development, highlighting their CDFI arm, PIDC Community Capital. She spoke about the significance of flexibility and collaboration among CDFIs in meeting the diverse needs of small businesses across the city.

Mihailo Temali shared the Build from Within Alliance's grassroots approach to economic development, which focuses on empowering local entrepreneurs in low-income neighborhoods through partnerships, training, and targeted support. He stressed the importance of concentrated opportunities in areas of concentrated poverty.

Hinkle-Brown elaborated on the Reinvestment Fund's business model, which encompasses organizing capital, data, and capacity to drive impactful change. He discussed their role as a data advisor, program implementer, and financier of transformative projects in Philadelphia and beyond.

The panelists also addressed questions from the audience about topics such as setting impact targets, supporting immigrant entrepreneurs, and the role of CDFIs in the impact investing landscape. The discussion highlighted the need for organizational capacity building, collaborative funding models, and targeted support for CDFIs to effectively serve their communities.