Approximately 200 individuals gathered at the Sabathani Community Center in Minneapolis on Tuesday to attend an announcement by the GroundBreak Coalition. The coalition revealed its commitment to invest $926.75 million in initiatives aimed at creating opportunities for wealth generation within the Black communities in the Twin Cities. GroundBreak was established in the wake of George Floyd’s killing, which took place a short distance from Sabathani on East 38th Street in south Minneapolis.
In May 2022, a group of over 170 individuals representing 120 organizations initiated efforts to address racial wealth disparities in Minneapolis and St. Paul. Over the course of six months, they worked to identify financial tools and products that could benefit Black individuals facing significant wealth gaps. Today, GroundBreak, a coalition consisting of more than 40 private, public, and philanthropic organizations, including the McKnight Foundation, has been formed.
The coalition’s president, Tonya Allen, highlighted their focus on tackling the historical issues of predatory lending practices and loan denials. Within GroundBreak, ten institutions have committed to earmarking the nearly $1 billion. These institutions include Bremer Bank, Bush Foundation, GHR Foundation, Huntington Bank, M.A. Mortenson Companies Inc., Margaret A. Cargill Philanthropies, McKnight Foundation, Pohlad Foundation, Securian Financial, and U.S. Bank.
The allocated funds will be channeled through selected nonprofits and community development financial institutions, with the deployment expected to commence by the end of 2024.
During the announcement event, Allen acknowledged the need for financial support in various communities, including low-income white families. However, she emphasized that this commitment would primarily focus on assisting Black aspiring homeowners, entrepreneurs, and commercial developers. The reason for starting with Black individuals is the recognition that broad initiatives often fail to address their specific needs, and this approach allows for tailored solutions. Additionally, she noted that separate efforts would be required to address the unique circumstances of indigenous families, given their distinct challenges.
“We recognize that race has historically been used as a means of exclusion for centuries, and it must now be utilized as a means of inclusion,” emphasized Susan Bass Roberts, the vice president and executive director of the Pohlad Foundation.
GroundBreak’s initiatives for wealth-building encompass providing Black homebuyers with up to $50,000 in partially forgivable loans and emergency capital for situations like a furnace breakdown during winter. For businesses, the coalition is combining various forms of capital to increase financing options. Additionally, the coalition is exploring opportunities for affordable rental housing for potential developers.
This is all part of the coalition’s broader objective to invest $5.3 billion over the next decade, following the approval of $1.3 billion in state funding for the housing sector by state lawmakers this year.
According to the coalition’s press release, approximately $175 million in state funding for first-generation homebuyers, in conjunction with Minnesota Housing mortgage lending, can be leveraged to advance GroundBreak’s objectives.
The event featured the presence of Governor Tim Walz,
former Minneapolis mayor R. T. Rybak, and former St. Paul mayor Chris Coleman.
The governor addressed the audience by saying, “What you are accomplishing here is truly transformative. The incident involving George Floyd lying on that street started many years before, and if we are genuinely committed to addressing it, we will do so as you are.”
Source: opportunities