Our Mission

One of the biggest challenges facing MBEs, low-wealth, and underserved communities is the misconception that financing options are out of reach. Many MBEs and business owners in low-wealth, underserved communities hesitate to apply for credit due to past negative experiences with financial institutions, perceptions of bias, fear of rejection, or unfamiliarity with the lending process—even when they are creditworthy, and their businesses are financially viable.

To address this, BCF's Diverse Supplier Finance Institute (DSFI) collaborates with trusted organizations such as the National Minority Supplier Development Council (NMSDC) and business chambers of commerce that focus on supporting MBEs. Through these partnerships, we engage directly with MBEs, provide information about available financing options, and work to build the confidence that access to capital is not only achievable but also affordable.

The structural barriers preventing MBEs from accessing credit—such as gaps in knowledge, lender requirements, networks, and skills—are rooted in a combination of historical, systemic, and social factors.

DSFI provides essential financial education assistance to help bridge the knowledge gap many MBEs face in navigating financial products and accessing capital. We offer support in areas like financial literacy, loan application packaging, and understanding the complexities of securing credit. By helping businesses understand how credit works, the loan requirements, and available financial products, we empower MBEs with the confidence and skills to apply for credit—even when they are fully qualified. This foundational support is crucial for enabling MBEs to access the capital they need to grow and thrive.

There is a significant funding gap for MBEs, particularly first-time borrowers in low- to moderate-wealth (LMI) communities. Many struggle to qualify for traditional loans, and when they do, they often receive significantly lower amounts compared to other social-economic businesses. As a result, they may turn to high-cost options like Merchant Cash Advances (MCAs), which can worsen financial challenges. This lack of affordable working capital limits growth and perpetuates economic inequality in underserved areas.

DSFI partners with philanthropic foundations to provide subgrants, on a first-come, first-served basis, to cover closing costs for low-wealth borrowers. By addressing this key barrier, we make it easier for borrowers to access capital. Our outcomes-based model ties funding to borrowers' performance, helping them build a strong borrowing history and ensuring long-term success and sustainable impact.

In addition, by partnering with private funders to help offset potential losses, BCF’s Lending Team can make our underwriting criteria more flexible and approve more borrowers, including those with limited business credit histories or collateral. These strategic partnerships reduce financial risk and expand capital access for MBEs. We also offer flexible loan terms, such as tailored repayment schedules and short-term payments deferrals, to better accommodate the cash flow needs of growing businesses. Finally, our holistic risk assessment considers factors like management experience and market potential—beyond just financial history—to identify high-growth opportunities. Together, these strategies help reduce barriers to capital and support MBE growth.

The limited access to capital represents a significant challenge for low-wealth and underserved communities, hindering their ability to grow, scale, and create jobs. Without sufficient funding, businesses—particularly those in underserved or lower-income communities—often face difficulty in expanding their operations and generating new employment opportunities.

This gap in working capital not only affects the growth of individual MBEs but also has broader implications for national economic development. When businesses struggle to thrive, it can slow down overall economic mobility and limit opportunities for communities to prosper. Addressing these challenges is key to helping MBEs unlock their full potential and contribute to long-term, inclusive economic growth.

As part of DSFI’s area of focus, we are developing an impact reporting framework to track how access to capital—through BCF’s lending activities—drives revenue growth, job creation, and overall economic development for businesses.

Our objective is to highlight the positive economic outcomes of BCF’s support for diverse-owned businesses, underscoring their critical role in the national economy. By demonstrating how our efforts contribute to business growth, job creation, and market expansion, we aim to showcase the tangible impact of our work to attract more resources for our clients. Additionally, we seek to share valuable insights and best practices with the broader CDFI community, helping to strengthen the sector’s collective ability to drive meaningful and sustainable change.