Boosting Local Businesses: A new social investment fund offers much-needed capital to small businesses and nonprofits in Black and Brown communities.

• Position: CHANGE LEADERSHIP

SMALL BUSINESSES AND ENTREPRENEURS FORM THE BACKBONES OF THRIVING COMMUNITIES, AND RIGHT NOW THEY'RE STRUGGLING. This is especially true in the low-income neighborhoods and communities of color hit hardest by the coronavirus pandemic.

COVID-19 laid bare the profound impact that our neighborhoods have on our health. People in low-income communities of color living with higher levels of pollution, overcrowded housing, and other environmental harms were sickened and killed by the virus at much higher rates than people in wealthier, whiter communities.

The conditions that put these communities at such high risk during the pandemic are no accident. Decades of discriminatory lending practices, such as redlining, contributed to economic decline and disinvestment. Far too often, these communities lack access to healthy and affordable food, green space, and quality jobs. "Investing in small businesses that create good jobs and a welcoming environment--and that provide basic goods and services--can go a long way toward building healthier neighborhoods and undoing the suffering inflicted by decades of unjust policies," says Maggie Super Church, vice president for Healthy and Resilient Communities at CLF.

Shops that sett affordable and nutritious food, gyms, cafes, and cultural facilities alt contribute to healthy, Livable neighborhoods. "They also create jobs and keep money in the community, white building wealth and contributing to a sense of place and community pride," says Church.

Unfortunately, these types of small, local businesses are often the least able to secure necessary funding to start up. And even when they do get off the ground, their owners can struggle to grow sustainable brick-and-mortar enterprises. This lack of funding makes it challenging to find sustainable businesses that both meet community needs and can afford to lease the available spaces in a neighborhood.

Funding is only one of several barriers to success. But providing access to affordable capital is critical to fueling the sustainability of these foundational small businesses and nonprofits in the communities that need them most.

That's why Conservation Law Foundation and Massachusetts Housing Investment Corporation (MHIC) launched the Healthy Retail and Commerce Fund. The fund provides startup and operating capital to health-promoting enterprises serving tow-income communities and communities of color. Providing Loans with flexible terms and Longer repayment plans breaks...