BCIF is not intended to compete with other financial institutions already providing microloans. BCIF intends to supplement existing financial resources and in some cases, fill the gaps in access to capital for the African-American community. BCIF’s unique characteristics include:

A specific focus on the Black community;

The interest rate for borrowers is lower than many of the other alternative lending institutions;

The fund is a community-based effort that will have much more visibility and appeal to community-at- large (not just for those “in the know”); and

The lending criteria for borrowers will not be as restrictive as they are for many other alternative lending institutions.

In America and in a capitalist society, its widely acknowledged that ownership, especially of real property and business, is the primary vehicle for asset and wealth building. With assets and wealth come influence and power to achieve the type of substantive sociopolitical change we seek. Helping to grow financial assets provides the Black community with the “financial muscle” to equip itself with the capacity to create the change it seeks.

Because borrower default is a common risk associated with loan programs, BCIF has created a financial model that allows it to mitigate a specific cap on the number/percentage of loans that could potentially experience defaulted payment. Of course, loan requests are vigorously screened to assess for repayment capacity and thus minimize risks for borrower defaults.

No. BCIF is a transparent, independently operated, 501c3 nonprofit organization that is managed by direct staff, a loan review committee, and a board of directors. BCIF is housed at OneUnited. Therefore, BCIF funds and transactions are fully insured by the Federal Deposit Insurance Corporation (FDIC).

Due to the disparities in financial assets and wealth for the Black community, BCIF microloans are exclusively directed toward African American borrowers. BCIF actively seeks and welcomes donors/activators from diverse backgrounds who are concerned about the economic state of the Black community and view economic empowerment as a primary vehicle for social and political change.

Approximately 75% of all dollars are distributed directly to the community through microloans. The other 25% covers necessary administrative costs of the fund. These costs include but are not limited to: staffing, business development activities, marketing/advertising, supplies, etc.

The President/CEO is primarily responsible for monitoring and managing funds. Governance of funds and BCI-repeated activities is conducted by the board of directors.

BCIF’s 25% refund policy is unique in the nonprofit sector and represents the organization’s unique approach to moving the needle forward for the Black community. The fund essentially “holds” 25% of financial gifts of $1,000 or more to allow the fund to do three things:

Compile a reserve fund that allows it to mitigate potential loan defaults;

Cover administrative costs of the fund; and

Provide an additional incentive and relevant differential benefit to donors/activators, both of which are not typically found among nonprofit organizations.

Yes, BCIF welcomes financial gifts of any amount. Every dollar helps to build the financial muscle of the community. However, financial gifts of under $1,000 are not eligible for the 25% refund.

BCIF donors come from all walks of life and represent various professional, political, racial/ethnic, geographic, and cultural backgrounds. There is one common characteristic between them: they all are passionate and/or concerned about the economic condition of the Black community and view it as a means to create sociopolitical change.

No. As long as a donor makes a financial gift of $1,000 or more, BCIF will distribute a 25% refund of the gift on a quarterly basis over the course of one year from the date of the gift.

There is no set loan distribution cycle. Loans are given on an ongoing basis throughout the year. Loan applications are welcome at any time. Preliminary screening of application materials is completed four to six weeks from the date of receipt of the application. Once approved, funding is processed and disbursed within two weeks from approval date.

No. Individuals/businesses can only apply for one loan at any given time.

Exceptions may be allowed in special circumstances to provide loans to individuals/businesses outside of Southern California. However, such loans must have a substantive impact on the Black community in BCIF’s target geographic area (Los Angeles and Riverside Counties). Individuals/businesses residing outside of the target geographic area should seek BCIF consultation before applying for a loan.

Declined applicants must wait at least six months before applying again for a BCIF loan.