How to benefit from corporate pledges to minority businesses

By ROSALIE MURPHY of NerdWallet

In the last two years, banks and companies of all sizes have pledged billions of dollars to support business owners of color. But that support typically isn’t in the form of grants or other money put directly in business owners’ pockets. Rather, many of those pledges have been investments in community development financial institutions, or CDFIs. CDFIs typically make small-business loans to customers who may have trouble qualifying with traditional banks due to strict underwriting requirements. Many also offer business coaching and financial education. If you’re looking to take advantage of corporate pledges to minority business owners, find and start a relationship with a local CDFI.