Inclusive capital helps entire communities

Even as the costs and challenges of doing business continues rising, there is a growing political effort creating artificial barriers that undermine business growth. Legislation and political directives are tying business leaders’ hands and limiting their choices in an increasingly diverse economy. National political rhetoric and autocratic use of federal and state agency authority preempt business leaders from doing anything with a hint of diversity, equity, or inclusion. This ultimately interferes with smart business decisions, restricts markets, and limits communities from achieving inclusive growth and shared prosperity. 

Inclusive growth should be practical business, not a source of conflict. Inclusion is not just ethical. It can, and should, be profitable. Empowering communities creates widespread prosperity.  

Inclusion improves the bottom line. Living Cities, the organization I run, has over three decades of experience building inclusive economies for community building and growth. We are witness to the power of people in organizing, governing, and nurturing economic environments that build wealth.  

With an inclusive approach to development, everyone can benefit.  

THE DIRECT IMPACT OF CAPITAL INVESTMENTS 

Most recently, we successfully closed out our Blended Catalyst impact investment fund, which deployed capital around the country in inclusive ways for 10 years. Through that capital, we invested in business models and innovative capital structures that modeled new ways of doing business and delivering results. 

Over 10 years, from 2015 to 2025, the Blended Catalyst Fund brought together financial and philanthropic partners to improve capital access and investment as a key driver for equitable and inclusive economic opportunity. With our operating partners, Known, we were able to:  

• Deploy over $25 million in capital, the majority going to small businesses and real estate or housing.  

• Leverage that capital 18x for almost $500 million in additional capital to communities that needed it. 

• Create over 6,500 jobs and offer 4,000 social services.  

While those large-scale numbers are impressive, they do not speak to the direct impact of the capital in communities. After 10 years of investing for inclusion, we have found that inclusive capital does more than generate returns. It can create results that go beyond the balance sheet. 

NEW BUSINESS MODELS 

Inclusive capital creates new business models by unlocking financial resources for organizations and entrepreneurs in undercapitalized communities, giving space for innovative ideas that never had the chance to grow. By removing barriers, an inclusive approach to capital can empower entrepreneurs to create solutions tailored to their communities.  

For example, in early 2025, Fortis Capital and Sunrise Banks offered a loan package to NATIFS, an Indigenous organization addressing economic and health disparities in Native communities. Their loan supported the transformation of a property into a hub featuring an Indigenous restaurant, commissary kitchen, and a center for expanding Indigenous food systems. This partnership shows how tailored financial strategies can fuel entrepreneurship and reveal community-driven solutions in undercapitalized markets. 

MARKET EXPANSION 

Expanding inclusive capital allows businesses to enter new markets. When entrepreneurs have access to personalized investments, companies can take advantage of market opportunities and rapidly scale. 

OnShore Technology Group is a Chicago-based firm that provides validation solutions to life sciences companies, part of a regulatory mandate. When the COVID-19 pandemic hit, many of OnShore’s clients, including Moderna, were hurriedly working to bring COVID vaccines and therapies to market. Systems validation was part of this process. Founders First, which received an equity investment from the Blended Catalyst Fund, developed an accelerator program aimed at supporting entrepreneurs like Onshore’s founder, Valarie King-Bailey. She participated in the program, and then secured a $500,000 revenue-based financing investment from the business accelerator and investment firm. After their engagement with Founder First, OnShore experienced revenue growth of around 90% in one year and have been named to the Inc. 5,000 list three years in a row. 

COMMUNITY WEALTH BUILDING 

Inclusive capital is a catalyst for community wealth building, enabling local businesses to grow, create jobs, and foster social and economic connections within undercapitalized neighborhoods. By investing in a diversity of entrepreneurs through business expansion, inclusive capital helps transform small enterprises into engines of prosperity for their communities. 

Victor Diaz built Renegade Running in Oakland not only as an athletic shop, but as a hub for community building. Diaz participated in Blended Catalyst Fund loan recipient ICA Fund’s business accelerator program in 2022. He subsequently applied for growth funding. With that initial investment, Renegade Running was able to increase its capital by 100% with an additional investment from retailer REI. The run club, and the company, has become a community hub for Oakland, and in 2024, expanded its operations into Los Angeles.   

These are three of countless examples of how taking a broad and inclusive approach to capital can benefit everyone. The results from the Blended Catalyst Fund show that direct investment can help private enterprises lift entire communities. The evidence is here. It is time for business and investment leaders to act on the growing body of data proving that inclusive investment is both profitable and beneficial to a healthy local and national economy. 

Joe Scantlebury is president and CEO of Living Cities.

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