Community Progress Makers (CPM) Winners Series: Pacific Community Ventures
8.09.2019
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LISC StoriesEconomic Development
The Community Progress Makers fund is a $20 million, two-year initiative by the Citi Foundation to support high-impact community organizations that are driving economic opportunities in their communities. These 40 change agents are addressing a range of urban challenges in the U.S., from economic development and affordable housing to environmental sustainability and urban infrastructure. In addition to core operating grant support, Community Progress Makers have access to technical assistance from leading experts and are part of a learning cohort to share best practices.
LISC LA was named part of the City Progress Makers cohort and joins organizations working in Chicago, Los Angeles, Miami, New York City, San Francisco Bay Area, and Washington D.C. The cohort is made up of dynamic organizations that are leading economic and housing inclusion initiatives across the country. Pacific Community Ventures is also one of the forty winners of the Community Progress Makers fund.
Pacific Community Ventures in 1998 recognized the various issues small businesses face due to a lack of capital and technical assistance. Their company philosophy, one that places sole proprietors in the center of their business model, is built upon a simple principle: that small businesses form the backbone of the national economy and are capable of becoming powerful engines of social change in local communities. For more than 20 years, the nonprofit has helped thousands of entrepreneurs build their small businesses from the ground up, managing a diverse portfolio of clients — including women-owned businesses and people of color — in the retail, media, and manufacturing industries.
Most of the companies that Pacific Community Ventures sponsor have created and maintained over 2,500 jobs per year, boasting 44% job growth (exceeding the national rate of 1.7%) and an average 20% revenue growth (compared to 7% for other small businesses). By providing microloans that are fully amortized and accepting a wide variety of collateral, Pacific Community Ventures is committed to realizing the potential of small-time enterprises.
"Pacific Community Ventures envisions a world of thriving communities where everyone has a fair shake."
This commitment is also reflected in innovative programs like their Quality Jobs Initiative, which strives to not only assist in job creation, but also ensure that such jobs provide a living wage, basic benefits, and fair workplace conditions. In collaboration with other philanthropic organizations, it is currently developing public policies to expand private investment in quality job creation. It has also released a report detailing federal programs like the Community Reinvestment Act (CRA) that could be updated to incentivize financial institutions to broaden their lending criteria.
In addition, Pacific Community Ventures has begun consolidating a $12 million fund for procedural programs accomplishing the Quality Jobs Initiative’s goals. These funds will be deployed in support of loan-loss reserves, their BusinessAdvising.org mentoring platform, and further research into creating quality job incentives for corporate sponsors.
Through its integrated model of research, advising, and strategic investment, Pacific Community Ventures is showing that the capital market is not just defined by the biggest players in the game. It is motivated by an accompanying focus in the people that live in communities, aligning motivations of profit with social purpose and advancement.
Pacific Community Venture’s belief in the social responsibility of business is also shared by LISC LA. By connecting investors to small businesses, we hope to help others be the champions for those in need in order to create a network of more efficient, compassionate, and fiscally healthy communities across the country.
The Community Progress Makers fund is a $20 million, two-year initiative by the Citi Foundation to support high-impact community organizations that are driving economic opportunities in their communities.
