The foundation that used a grant to make grants obsolete

CNote has provided a source of funding for federally certified Community Development Financial Institutions by pooling cash from foundations, bigger banks, philanthropists, and donor-advised funds to counter the lack of available cash flow experienced by CDFIs, which are lenders but not banks. Federal COVID-19 funding set aside $30 billion specifically for CDFIs that overwhelmingly lend to women- and minority-owned businesses, which face persistent racial and gender biases and are unable to successfully tap into lending and grants such as the Paycheck Protection Program through traditional lenders.

Community banks in Wyoming were able to better serve local businesses in securing federal funds from the Paycheck Protection Program. The smaller banks were able to quickly pivot their staffing and operations need to process the overwhelming number of applicants, resulting in an approval rate of 100 percent in some counties. Personal connections in the smaller communities also led banks to work overtime and do everything in their power to help local businesses, in contrast to big banks which appeared to prioritize clients with higher net worth, according to reports.

Community banks in Texas have outpaced much larger national banks in approving and funding loans that are keeping businesses afloat during the pandemic-induced lockdown. The lone star state leads in the number of loans processed totaling $17 billion - saving a reported 200,000 jobs. Businesses in Texas have received more loans than any other state due to community banks that have been working around the clock. The banks have managed to approve as many loans as they typically would in an 18-month period.

Point-of-sale-based agency banking helps make digital finance more accessible and inclusive, allowing small businesses to act as banking agents, offering services like cash withdrawals and bill payments through fintech platforms. This integration has been particularly impactful in regions without bank branches. The integration of fintech throughout Nigeria has not only led to more autonomy in personal finance but has also created significant employment opportunities.

The Bagwai Youth Friendship Association is a community group that pools money together to support locals in need, whether it be paying school fees or providing start-up capital for a new business venture. Since 2019, the group has enrolled 35 children in school, repaired broken water pipes, renovated buildings and provided food to those in need.

The Brooklyn Cooperative Federal Credit Union provides small business loans to local Black and Brown businesses, through average investments of $24,000. This small, community lender provides more funding to local businesses than larger national banks like Citibank, Wells Fargo and Bank of America, helping support local businesses and finance community development.

Mumbuca is a digital currency used in Maricà’s basic income program. Residents, with few eligibility requirements, can qualify for a monthly stipend to purchase goods and services using a smart phone or a card. The currency runs on the digital platform E-dinheiro and can only be spent in the city limits. Individuals cannot swap Mumbucas for national currency, but businesses can after a 48-hour waiting period and a 1% fee. Local currencies, which are popular in Brazil, help residents increase personal savings and, with increased stipends during the Covid-19 pandemic, allowed informal workers to stay home.

An American nonprofit called the Community Reinvestment Fund expands access to small business loans by partnering with almost two dozen groups across the country to set up and scale up their community development lending. Founded in 1988, the group essentially takes on the risk of a SBA license so that others could benefit from their license. They created an online platform called Spark that redesigned the user interface of the existing loan processor platform to better facilitate the exchange of money. They have now supported loans for 1,000 communities across 49 states.

A nonprofit called Common Future is acting quickly to support business owners during the coronavirus crisis. Their board allocated a set amount of money specifically to keep on hand as a rapid response fund, and by early April 2020, they distributed $250,000 in emergency funding to seven organizations. The recipients are intentionally from disadvantaged communities, like rural, black, Indigenous, and other hard-hit demographics. Each organization used the money in different ways to support their target communities. Common Future also set aside 6 months' worth of operating expenses as a buffer.

Lift to Rise, a Coachella Valley nonprofit that pushes for housing and poverty policy change, launched a local lending circle program aimed at serving minority residents break the cycle of poverty. Partnered with San Francisco-based Mission Asset Fund, the lending circle helps those with poor credit or no credit at all to build up a spending history, have access to loans, create a savings account, improve their score, and more. Since 2008, Mission Asset Fund has partnered with more than 50 organizations across the U.S. to provide lending circles to more than 9,000 clients.