The systems and policies that guide the U.S. financial industry have helped create a wide and long-standing racial wealth gap. In 2019, the typical white family had eight times the wealth of the typical Black family and five times the wealth of the typical Hispanic family. People of Color have been underserved by the banking industry as well: In 2019, 14% of Black households and 10% of Hispanics had no bank accounts, compared with 3% of unbanked white households.

But some people and companies in the financial industry are working for greater economic inclusion and positive social impact. These include several Certified B Corporations that are shifting capital to People of Color and other communities that traditionally have been underserved by banks and other financial institutions.

Some are doing this by providing traditional financial products and services in new ways. Some are developing innovative products and services that connect entrepreneurs with capital. And some are stepping in where and when needed to give small businesses and their workers a lifeline in times of crisis.

By building on their founding missions and developing new products and services with a racial equity lens, these B Corps are pursuing a similar goal: To benefit their clients and the people they serve to amplify positive social and environmental impact. The B Corps featured in this article can serve as examples for how to use business to shift capital and bridge the racial wealth gap.

One of these B Corps is Clearinghouse CDFI, which is part of a new initiative to tackle the racial wealth gap. “The FVLCRUM Fund brings together community impact and private equity,” says Doug Bystry, CEO of Clearinghouse CDFI, “to connect underserved business owners with capital and build generational wealth.”

“We’re providing private equity investment to minority-owned businesses who traditionally have been overlooked to help them get to the next level,” Bystry says. “We have the right partners and the right people in the right place — people who know how to do equity. The impact won’t just stop at the business owner level but will get transferred down the line. There’s a true connection to benefiting communities of color.”

While public calls for racial equity have amplified since the murder of George Floyd, the FVLCRUM Fund was in development before that. The fund’s partners are lining up investors now for the first close of about $100 million in mid- to late November 2021, Bystry says.

It’s just the latest example of how Clearinghouse CDFI lives its B Corp values as a financial lender. “We only make loans on projects that have a tangible community benefit,” Bystry says. “As a B Corp we are always trying to adhere to those standards.”

Read the full article about B Corps and the racial wealth gap at Certified B Corporation.