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How the Community Finance Fellows are learning during a pandemic

How the Community Finance Fellows are learning during a pandemic

by | Apr 29, 2020 | News

While sheltering-in-place during a pandemic, we welcomed five Community Finance Fellows to our team on March 23 to begin learning in a virtual environment: Louise Jordan, a renewed San Diegan with a legal background who moved back from Virginia to join us; Andrew Moncada, a financial analyst from Florida who wants to run his own impact investment firm one day; Benson Ochira, a refugee from Uganda with a degree in business management; Essence Rodriguez, an undergrad research fellow with the U.S. Immigration Policy Center; and Crystal Sevilla, an executive assistant from San Diego with a deep interest in economics and finance.

The Community Finance Fellowship at Mission Driven Finance was designed to empower individuals from overlooked and underestimated communities to use finance as a tool for change. Through the program, fellows get hands-on training in a field that is often hard to access or unwelcoming to women and people of color. According to the Bureau of Labor Statistics, the securities and financial investments field is nearly 62% male and over 84% white. 

We are proud to share that our inaugural cohort of fellows are helping to diversify these numbers. With them, our team is now two-thirds women and two-thirds people of color.

During their year with us, the fellows will build connectivity and cultural awareness with communities of concern, and ultimately help drive much-needed capital and trust to communities often left out of the financial system. Our communities need this support now more than ever.

How we adapted the fellowship to COVID-19

The COVID-19 environment is impacting nonprofit and small business operations and the way that we traditionally source potential borrowers. With the physical and mental health, economic, and education effects of physical distancing taking a toll on communities we hold dear, we knew we needed to prioritize the support element of our work. Though we had developed a curriculum last year, due to the COVID-19-related closures of many businesses, we’ve adapted to the changing environment by quickly adapting our project plans while keeping the core lessons of our fellowship field guide intact.

One thing that remains constant is our intention to train fellows on the full lifecycle of impact investing—from researching, analyzing impact, and loan underwriting to building relationships in the community.

In their first week alone, fellows learned about our work closing capital gaps that close opportunity gaps. They immediately started digging in to understand what existing and emerging programs were available to support small businesses and nonprofits. Research briefs informed our whole team’s quick response to organizations in need of guidance as well as the design of our own programs to ensure equitable and expedient access.

“Joining Mission Driven Finance was something that I always wanted to be part of: a movement to shift the paradigm of traditional finance,” says Andrew. “Mission Driven Finance works on something dear to me—extending financial opportunities to those businesses that do not have the opportunity with traditional lenders due to outdated policies. It truly showed me that there is a huge opportunity to create a financially inclusive future that works for everyone.”

As we read reports and hear directly from leaders of color who have struggled to access critical relief programs, we see more clearly than ever how much representation in finance translates to more equitable access to capital.

How our fellows are helping us prepare for a post-pandemic future

Seeing how COVID-19 has been disproportionately impacting lower-income communities and communities of color, we looked for ways to use capital we have available in our Advance strategy and also to build new pathways to support underestimated borrowers creating a more equitable and resilient world. 

We recognize that most organizations desperately need immediate relief in the form of grants and subsidies from government or philanthropy, not additional debt they are unsure how to repay. But some of our portfolio borrowers are pivoting their existing capacity to mitigate the effects of this crisis and are even growing.

Fellows are key in this effort. They are rolling up their sleeves to research and outreach to organizations that may be growing now and need working capital, not just grants. Providing loans and alleviating their need for grants may allow those precious pools to go to other businesses that really need it at this time.

“One of the key transformations in the work I do now as compared to two months ago has been learning the impact investment model or theory of using finance as a tool for change,” adds Benson. “Looking forward, I feel very excited to see how we will continue to use this tool to bring positive changes in the underserved communities.”

Fellows are prioritizing companies that were profitable and growing before COVID-19, nonprofits with signed grant commitments, companies with a strong online sales component, sectors that are likely to emerge strong after the pandemic, and sectors that would most likely be able to access government capital in the near term. In addition to financial viability and tenacious management, we are still relentless in our pursuit of organizations that are committed to making a better world for their workers, customers, and communities.

As Louise points out, “Overall, I find this new work environment to be very challenging and engaging. Challenging because I am forced to step out of my comfort zone and be innovative about how I approach problems. Engaging because I am always learning something new from my exceptionally smart teammates.”

Just as before COVID-19, we work hard—and even harder now—to infuse our values of equity, inclusion, and access to ensure capital flows where it often doesn’t.

As Crystal says, “While we are not in an ideal situation, times like these validate the work that Mission Driven Finance has done to date. We are now shifting our efforts to provide a greater sense of urgency to respond to the needs of our vulnerable communities as they emerge from this crisis.”

The Community Finance Fellowship is made possible by the World Education Services Mariam Assefa Fund, Union Bank, The Parker Foundation, Harder+Company, and Mission Edge.

“The WES Mariam Assefa Fund congratulates the talented new fellows who have joined the Mission Driven Finance team and will be leading exciting efforts to ensure impact investing reaches overlooked communities,” said Monica Munn, Senior Director of the Fund. “To build an inclusive economy that works for all—including immigrants and refugees—capital must be invested in community-informed solutions. We’re proud to partner with Mission Driven Finance to drive change in the financial sector.”

If you know small businesses or nonprofits in your community that could use immediate financial resources, please share with them our COVID-19 resource page. If you know any that would be good candidates for Advance loans with Mission Driven Finance, please contact us.

Hear directly from the fellows in Community Finance Fellowship: Learning to Use Finance as a Tool for Change in a Time of Action

Small businesses & nonprofits respond to COVID-19

Small businesses & nonprofits respond to COVID-19

by | Apr 27, 2020 | News

The COVID-19 crisis has forced small businesses and nonprofits around the world, including our Advance borrowers, to forget business as usual and respond in creative ways to best serve their community and survive—quickly. From delivering essential household goods and locally sourced food to staying connected with families by livestreaming nature walks, these businesses and organizations demonstrate the flexibility, resilience, and heart that make small businesses critical for communities to thrive.

Friends of Willow Tree

A Friends of Willow Tree first grade Zoom class. Photo courtesy of Friends of Willow Tree.

Friends of Willow Tree, led by director Bethany Chaffin, is a nonprofit Waldorf-inspired educational enrichment center serving charter and home-schooled students across rural North County San Diego. With a curriculum built upon connection with nature, personal interactions, and creating tangible learning experiences, the COVID-19 pandemic presented a unique challenge. 

To navigate this new digital frontier, Friends of Willow Tree provided training to both teachers and parents to get the most out of virtual coursework. Each teacher developed a virtual roadmap that included recorded lessons, live check-ins, read-a-longs, and show-and-tells. They also continue to offer specialty classes such as woodworking, music, and foreign language in modified formats. 

Kate Beishir, a Friends of Willow Tree teacher, describes the experience as challenging yet transformative. “We have met this outer chaos with inner strength to allow students to have an anchor in this storm. We are not sure how long this storm will last—but we refuse to give up the connections we have with our amazing students. The river of life has taken an unusual turn, but we have grabbed our boats and paddles and we continue our journey. We have heard the call. And we are honored to answer.”

LuckyBolt

LuckyBolt continues to partner with local farms as they pivot to home deliveries in response to COVID-19.

Picking up fresh produce from JR Organics Farm. Photo courtesy of LuckyBolt.

LuckyBolt is a healthy food service social enterprise that aims to improve the food system by partnering with local farmers and suppliers to deliver hearty, healthy lunches to offices around San Diego. As many offices switched to remote working, LuckyBolt began home deliveries of pantry staples and rotating meal specials twice a week. They continue to prioritize local, sustainable food systems by sourcing produce from over a dozen San Diego-based farms and offering freshly baked bread, muffins, and more from local baker Justin Dallas Gaspar.

LuckyBolt’s large commercial kitchen affords their team space to put more stringent food safety procedures in place and also enables them to produce bulk orders of nutritious, local food for health systems during the pandemic. Founder Kris Schlesser feels compelled to do his part to keep San Diego healthy and strong, especially for those on the front lines who risk their lives to do the same. LuckyBolt has been providing nutritious, local food for several health systems during the pandemic.

Somali Family Service

SFS is helping East African immigrants and refugees access more support services in response to COVID-19.

Photo courtesy of Somali Family Service.

Somali Family Service of San Diego (SFS) provides support to East African immigrants and refugees in San Diego. Since its inception, the organization has provided culturally and linguistically appropriate programs and services for the nearly 30,000 people who escaped turmoil in Somalia, Sudan, Ethiopia, and Eritrea who now call San Diego home. SFS provides programs that develop leadership skills, financial literacy, health education, and career planning. 

Many cultural, language, and technological hurdles exist for the families that SFS supports, making it difficult to access help during this crisis. Local emergency food distributions require individuals to drive up and have food placed in their vehicles to avoid contact and potential viral transmission. However, many refugee families do not have reliable access to cars, and those that observe Islam are wary of food that may not be halal.

SFS is assisting refugees with applications for unemployment assistance and CalFresh food benefits, as well as navigating general questions about online learning, transportation, public health, and mental health. 

SFS’s COVID-19 response was recently featured in The San Diego Union-Tribune, where President and CEO Ahmed Sahid shared that “the organization normally serves at least 3,000 families a year…but last week alone it served at least 1,000 people…that number will grow in the coming week.” The nonprofit is raising funds to support this growing need with the SFS COVID-19 Relief Fund.

Moniker Group

Moniker shifted it's focus to offering fresh produce, dry goods, beer & wine, personal essentials, and home goods online in response to COVID-19.

Photo courtesy of Moniker Group

Moniker Group is a collective of local community-centered businesses. Throughout these challenging times, Moniker has strived to stay true to their values by keeping people at the forefront of everything they do. Following the conversion of restaurants to takeout only, founder and CEO Ryan Sisson knew they had to move fast to stay connected to the community. 

Ryan’s team responded by moving Moniker General 100% online and expanding its offering to curbside pick-up of fresh produce, dry goods, beer & wine, personal essentials, and home goods. They leveraged their values-driven commercial supply chain—which is still functioning well—to get both staples and splurges into local homes.

“The hope is to support the local community by providing mostly organic essentials—bagels, olive oil, beer, wine, ginger, avocados, the almighty TP, and lots lots more,” Ryan told the LA Times.⁣ Customers can also get their Moniker coffee fix with carryout from Moniker Coffee in Liberty Station.

Kid Ventures

To support public health, Kid Ventures transitioned to offer distance learning resources in response to COVID-19.

Kid Ventures educational livestreams. Photo courtesy of Kid Ventures.

Kid Ventures operates early childhood enrichment centers providing preschool, childcare, camps, and special events. As we all know, physically distancing with toddlers is impossible. To support public health, Kid Ventures transitioned to offer distance learning resources that both parents and children love. Virtual resources include Kid Ventures onDemand, featuring daily crafts and activities, and livestreamed storytime, nature walks, and simple science experiments.

Co-owner Darren Solomon shared that the response from parents has been overwhelmingly positive. One happy parent praised the immediate pivot to “innovative solutions like Facebook Live, take-home craft packets for each student, and Zoom sessions, which speaks volumes about Kid Venture’s commitment to their families. I’m not aware of any other preschool in the area that has been as responsive.”

 

The future will be led by intrepid entrepreneurs like Ahmed Sahid, Ryan Sisson, Bethany Chaffin, Kris Schlesser, and Darren Solomon who are committed to doing good in their communities. Entrepreneurs who look beyond short-term needs, crafting lasting solutions that will build stronger and more resilient communities for years to come. Working together even while apart, we can respond to this crisis and rebuild our communities. It’s up to all of us to ensure that once we reach the end of this crisis, the organizations we love are standing with us.

Finding the way back through evidence-based holistic treatment

Finding the way back through evidence-based holistic treatment

by | Apr 21, 2020 | News

The below is an expanded version of our portfolio profile about The Way Back.

The Way Back helps men to “find their way back to their authentic selves.” A residential drug and alcohol abuse treatment program treating men since 1971, The Way Back supports its residents to find that authenticity of living a life of long-term sobriety, backed by evidence-based programming. One of few Drug Medi-Cal Organized Delivery System (DMC-ODS) facilities in San Diego County that allows residents to work during their treatment, The Way Back puts special emphasis on holistic wellness and encourages clients to participate in all areas of life that will help facilitate a healthy and successful transition back into the community.

“Treatment means treating the whole person,” says Thomas. “What are all the needs? [The Way Back helps clients with] physical and mental health, setting up with primary care physician, dentist, and therapist while living at The Way Back if necessary.”

The Way Back uses trauma-informed care in its client activities—clinical groups, education groups, mindfulness meditation, relapse prevention groups, codependency groups, anger management, emotional regulation, and individual psychotherapy.

“We are training men to be better fathers, better husbands, better employees, to stay out of prison, to work, to communicate,” says The Way Back Executive Director Chris Thomas, a licensed therapist who has been sober for 25 years. “Men are an important part of family structure, and addiction is a family disease.”

Another part of treating the whole person means tapping into strength-based care. “We help clients identify their superpowers,” says Thomas. Strength-based treatment—rather than focusing on shortcomings—is important in the recovery process, because it promotes the individual’s wellbeing, self-awareness, self-respect, self-esteem, independence, resilience, and ability to make choices.

The activities at The Way Back also emphasize nonjudgmental care. For instance, a sex-positive relationships workshop provides space for residents to openly discuss past sexual experiences that occurred while on their drug(s) of choice, as well as reminders of the effective use of condoms, conversations about consent (as in someone who is altered isn’t able to give consent), and messaging around taking care to not become too vulnerable too soon in a new relationship. These frank conversations offer a safe space for residents to reset and reframe expectations.

“There’s enough shame and guilt [in recovery],” says Thomas. “We don’t want to add more of that. We hold no judgment about habits and sexual activity.”

Another part of what makes the programming at The Way Back holistic is its focus on concurrent treatment for substance use and co-occurring mental health disorders. 

Staff pay attention to each client’s mind, body, and spirit during the recovery process. The seven foundations of recovery as outlined by The Way Back include:

  • Enhancing or maintaining motivation
  • Coping with cravings
  • Managing emotions
  • Nurturing healthy relationships
  • Balancing life
  • Living with a higher purpose, and 
  • Securing aftercare and outpatient services

While The Way Back​ ​adheres​ ​to​ ​an​ ​abstinence-​based​ ​method​ ​of​ ​rehabilitation​ ​from​ ​substance use, if a client lapses while in treatment, he will be reassessed and continue treatment or be referred to a higher level of care.

It is telling that how Thomas defines success is if a client has experienced more days of sobriety this year than last—it’s not about conventional “success stories” with a neat ending, as treatment and life are ongoing journeys; progress is key.

The Way Back receives government payments from the County of San Diego, critical in providing recovery services supporting the success of economically vulnerable individuals. 

With new leadership and a recent shift to fully operationalizing the DMC-ODS program, The Way Back requires general working capital to manage cash flow gaps between invoicing and reimbursement of services by the county and steady existing operations.

The Way Back approached its existing bank partner to secure a line of credit and loan, both of which were denied. However, during one the phone calls between The Way Back and their bank, someone suggested Thomas reach out to Mission Driven Finance.

“Once I heard about Mission Driven Finance’s mission, I knew it matched our core beliefs,” says Thomas. “I believe in doing good and doing well at the same time. And the technical assistance [that Mission Driven Finance provided] alone is worth the interest.”

Mission Driven Finance recognized the deep and meaningful impact The Way Back has on their clients, and offered a $150,000 loan for the residential program to use as needed for general working capital—including paying staff and bills on time—while they enhance their credit position to reapply for a line of credit from their banking partner.

“A revolving line of credit [would help us] become self-sustaining so we won’t need any more loans,” says Thomas.

Over the course of the Mission Driven Finance loan, The Way Back plans to continue to operate its current 22-bed residence and potentially increase capacity to 24. The Way Back will provide evidence-based treatment to an estimated 150 clients in need, annually.

You too can support The Way Back’s residential program by following them on Facebook and donating here (the money goes not to operational funds but residents funds for hygiene kits, clothing, etc.).