This blog post is by Matthew L., Workforce and Economic Development Librarian.
At a monthly meeting hosted by Startup Tucson, I met Danny Knee, the executive director of the nonprofit Community Investment Corporation (CIC). We spoke about CIC, what they do in our community, and how he got involved in this work. CIC provides access to the economy with loans of an average of $10,000 for people who can’t qualify for a loan from a traditional bank to start their business.
“Most small businesses are started with personal savings and because of historical barriers to wealth accumulation, people of color, women, and folks in rural areas often don’t have the collateral or credit score they need to qualify for a loan,” Danny told me. Funding is the primary barrier for people in the community who have a great business plan. CIC works closely with Startup Tucson, “They help people develop the entrepreneurial skills to build a strong business and we address the final puzzle piece, funding.”
CIC is a 501c3 nonprofit which started in 1996. Their three means of building an economy for all are programs that address homeownership, entrepreneurship, and education. Their mission is to provide real tools for wealth building for folks who have traditionally been locked out of these opportunities. Because the administrative costs associated with loans are similar no matter the size of the loan, traditional banks don’t typically offer the microlending or alternative lending that CIC provides.
“The framework we use is relational lending where we look at risk in a different way,” said Danny. One of their flagship programs, which may be unique in the country, is the BIPOC Community Managed Loan Fund. This fund provides 0% loans for entrepreneurs of color and is managed by a community group who identify as black, indigenous or people of color, and who develop the eligibility and application process for potential recipients. So far, they’ve distributed over 70 loans through this fund.
Danny has been doing anti-poverty work for 25 years. He received his master’s degree in city and regional planning and has focused his professional efforts on housing and community development, including time spent at the Tucson Urban League. “I started out as a middle school teacher,” he said. “I wanted to make an impact bigger than the classroom.” Since his start as director of CIC in 2016, the staff of CIC has grown from 5 to 18.
“We talk about the time tax of poverty and the many barriers or hoops that people who are poor must jump through to get ahead.” Being poor is costly because of the time and effort it takes to access programs that can help. “One of the main goals of our lending programs is to help people avoid the predatory lending that takes advantage of people who are overwhelmed by information,” Danny said. CIC is piece of the puzzle in Tucson and Southern Arizona to help people access the economy and rise out of poverty with their small business plans.
Information on all of CIC’s different lending/capital access programs can be found on their website.
