Washington Area Community Investment Fund, Inc. (Wacif)

WACIF's goal is to help level the financial and economic playing field for low- to moderate-income communities in the Washington, DC, metropolitan area. WACIF is piloting a program with the goal of creating a market for locally-sourced loan capital for small businesses.

Organizational goals include becoming CARS-rated within the next 2 years. CARS (CDFI Assessment and Ratings System)-rated. CARS is an independent, third-party rating system for community development financial institutions (CDFIs). This comprehensive review assesses the capacity as well as the organization’s policies and procedures and helps simplify the due diligence process for impact investors. WACIF’s long-term goal is to become a $20 million loan fund within the next 5 years.

WACIF is employing several strategies to increase our organizational capacity to enable us to better the financial needs of local low- to moderate-income communities. WACIF strives to meet this challenge by seeking capital from a variety of sources, both public and private, including local, state, and federal government agencies, banks, corporations, foundations, and individual and institutional investors. These investments will increase loan capital available to local underserved small business owners, many who would have no access to capital at all, and at rates lower than market interest rates.

WACIF also seeks new sources of operating support. WACIF’s target market includes all low- to moderate-income individuals and communities in the District of Columbia. Although WACIF receives substantial support from local government agencies, this support is for is designated for specific target areas. The total cost of providing technical services at no cost to all of our low- to moderate-income clients is not completely covered. WACIF must make up the difference by obtaining support from foundations, corporations, and individuals. WACIF constantly seeks additional support to continue to provide quality technical assistance to all of our clients.

WACIF has recently received a Service Grant from the Taproot Foundation to update our branding and messaging. This capacity building support will enable us to do a better job of attracting investors and donors interested in investing locally. WACIF is well-respected in the economic development community and seeks to attract more local impact investors.

Currently, WACIF has $7 million in capital under management, including our own Access to Capital Loan Fund (ACLF), which has been operational for 26 years, has 57 institutional and individual investments, boasts a 95% loan performance rate—and a 100% investor repayment rate. In addition to our own loan fund, WACIF administers and manages several loan pools funded by the U.S. Small Business Administration, the Maryland Department of Housing and Community Development, and the District of Columbia Department of Small and Local Business Development.

WACIF also has a variety of stakeholders and connections, which is reflected in our extensive email list of approximately 3,000 contacts, ranging from current and previous clients, investors, donors, community organizations, financial professionals, local government agency personnel, and other individuals.

WACIF continues to leverage our relationships and past successes to increase our services to local underserved communities. WACIF has expand access to capital products and services and technical assistance and entrepreneurial training through partnerships, collaborations, and pilot programs. In addition, WACIF's loan volume and the number of clients served in the past 2 years have increased significantly as a result of an increase in our own organizational capacity.

WACIF has not yet achieved scale in terms of capital available to lend, which is the focus of our Neighborhood Notes Initiative, a pilot program currently in the development stages. With this initiative, WACIF seeks to create a market for locally-sourced investments to provide loan capital to local, underserved entrepreneurs, which will in turn result in job creation and spur community-based economic development.