The Economic Mobility Corps program is investing in the capacity of Community Development Financial Institutions (CDFIs) while expanding inclusive access to workforce development opportunities within the field.
April is Financial Capability Month, a time focused on recognizing the role of investments, education, and supportive programs that help to ensure families are financially resilient and help build a more equitable economy. As we focus on the cross-cutting efforts necessary to promote financial capability, we’d like to shine a spotlight on the Economic Mobility Corps (EMC), an innovative partnership between the Department of the Treasury’s CDFI Fund and AmeriCorps, launched in 2021, to place AmeriCorps members for one-year terms of service at certified CDFIs.
Through this interagency collaboration, the EMC program is expanding national service opportunities while bolstering the ability of CDFIs to deliver financial services and products to families and communities in need. At the same time, the EMC program is also building a pipeline of diverse talent to undertake community and economic development work as members gain new skills and professional experience to build their careers in the CDFI Industry. To further support EMC members, LISC is also partnering with the Credit Builders Alliance and the Carsey School of Public Policy to offer opportunities for professional certification in foundational areas of credit building and CDFI operations.
Building local talent, driving local impact
CDFIs provide credit, capital, and financial services in support of underserved families and communities throughout the country. The Treasury Department has certified over 1,400 CDFIs serving distressed urban, rural, and Native communities throughout the country. CDFIs have a proven track record of investing in communities and filling critical gaps in providing financial services, financial products, and wealth-building opportunities for low-and moderate-income consumers and aspiring entrepreneurs in underserved geographic areas. Yet, despite this critical work, CDFIs are often under-resourced and experience human capital constraints, especially those CDFIs working in rural communities.
CDFIs are particularly well equipped to help strengthen the financial resiliency of families, many of whom were historically shut out of traditional banking resources. In 2021, one in five households in the United States were unbanked or underbanked, a reality that disproportionally impacts households with low-incomes, leaving them vulnerable to predatory financial services. By coupling responsible financial products with direct services and technical assistance, CDFIs uniquely promote inclusive economic outcomes for the clients and communities they serve.
LISC, now administering its second round of EMC funding, is building on the strengths of our longstanding AmeriCorps program to place EMC members at partner CDFIS throughout the U.S. that are providing a range of financial capability services to local residents. We partner with other stakeholders to ensure the EMC program reaches a range of CDFIs, as 100 percent of LISC’s federal award supports EMC member positions at other CDFIs. Our partnerships with Inclusiv, NeighborWorks, and the International Rescue Committee’s Center for Economic Opportunity help us to ensure geographic and population diversity. Our partnership with Inclusiv, for example, enabled LISC to support 24 CDFI credit unions, including 16 cooperativas in Puerto Rico, in our inaugural 2022 cohort.
Though still early in our administration of the initiative, we are already witnessing the positive impact the EMC program is having for AmeriCorps members, CDFI partners, and the communities they serve. Alisha Adams, a member of our inaugural cohort, joined Stepping Stones Community Federal Credit Union as an EMC member in Wilmington, Delaware, where she focused on strengthening the organization’s ability to provide financial capability services to justice-involved individuals. Alisha recently shared how her work is helping the CDFI’s clients access banking services accounts and strengthening their economic opportunities.
In Metairie, Louisiana, Maya McQuarter finished her EMC service at The New Orleans Fireman's Credit Union, where she’s helped more than 100 community members better understand financial products and co-developed budgets that support economic resiliency. Maya is a communications major at Southern University, the largest HBCU in Louisiana, and will be transitioning into a full-time role at the CDFI after graduating.
Michael Dunn, who served with Neighborhood Housing Services of Baltimore in Maryland, provided housing counseling services. During his tenure, he helped 344 people to improve their credit scores and increase savings, leading them down the path toward homeownership. He was hired for a full-time position following his service year.
We are proud to report the significant strides we've made in promoting diversity and inclusion among our CDFI partners and EMC members. In our inaugural 2022 cohort, 82 percent of EMC members identified as non-white, with 31 percent identifying as Black and 48 percent identifying as Hispanic. Furthermore, 76 percent of the members were already living in the community being served by the CDFI, showcasing our commitment to empowering and uplifting local residents. Our CDFI partners also demonstrate a strong dedication to inclusivity, with 58 percent serving rural communities, 76 percent working in persistent poverty areas, and 67 percent being BIPOC-led.
We believe that we can build on these outcomes in our second cohort of members, which we are filling on a rolling basis through June. With the support of the Citi Foundation’s Community Finance Innovation Fund, LISC will be able to provide matching funds that increase EMC participation among CDFIs that are small, rural, BIPOC, and/or LBGTQIA+-led. The Citi Foundation funding will also allow us to increase AmeriCorps stipends as we work to expand equitable access to national service opportunities for the communities we serve.
Partnering for sustainable progress
Innovative public-private partnerships like the EMC are critical tools for fostering financial capability and collaboration between federal agencies, which benefits and supports investment in on-the-ground organizations. Indeed, the EMC’s multi-faceted approach addresses a range of pressing needs within our communities by strengthening financial inclusion efforts, building the capacity of CDFIs, and increasing equitable access to workforce pathways. By allowing CDFIs to reach further into and provide deeper one-on-one financial capability services to residents, EMC members are and will continue to make a difference in the communities they serve.
If you are a CDFI that is interested in hosting an EMC member, please visit the AmeriCorps section of our web site.
About the Author
Michelle Harati, Senior Policy Officer
Michelle advocates for federal policies to broaden pathways to opportunity, supporting multiple LISC national programs, including: economic development and small business, workforce development and financial capability, creative placemaking, and AmeriCorps. Before joining LISC, she worked with the City of San Diego Economic Development Department as a Community Development Specialist. She was also a Senior Asset Building Coordinator at the International Rescue Committee's (IRC) Financial Opportunity Center in San Diego and served two terms as an AmeriCorps member. Michelle holds a B.A. in Political Science from the University of California, Los Angeles, and a M.P.P. from Georgetown University.
@michelleharati