Leveraging local knowledge and access of NCIF Network of CDFI and Minority Banks to provide support to small businesses

Creating Deep, Evidence-based Impact for Small Businesses and Nonprofits Across the Country

National Community Investment Fund (NCIF) is excited to announce round two of its NCIFCares Grant Program and the launch of the NCIFCares Coaching Program in collaboration with the Rustandy Center for Social Sector Innovation at the University of Chicago Booth School of Business and Grow Movement. NCIFCares is a program that supports for-profit and nonprofit small business customers of NCIF Network Banks with micro-grants and, now, with individualized coaching to make small businesses more effective, sustainable and resilient.

Small businesses play a key role in generating jobs, creating wealth and providing critical products and services. Their growth and sustainability are critical to the quality of life for the employees, individuals, and communities they serve. Yet they were among the most severely impacted by the COVID-19 pandemic, which exacerbated the disproportionately high rates of unemployment and poverty, social and economic inequities, and slow economic growth in historically underserved, low-income and minority communities. NCIFCares was launched in 2020 to get critical grant support to these small businesses and nonprofits.

NCIFCares II Grant Program

In recognition of the success of NCIFCares I, NCIF received an investment of $400,000 from Capital One to deploy through the NCIFCares II Grant Program. Grants of $5,000 will be awarded to up to 80 small business customers of NCIF Network Banks. The grants will continue to be targeted to small businesses located in low-income communities and impacted by the pandemic. The focus will be on businesses that are poised for long-term growth and committed to making social and economic impacts for their employees, customers and communities.

NCIFCares II is building on NCIF’s successful deployment of $100,000 to 50 small business customers of NCIF Network Banks. Unrestricted grants of $1,000 up to $5,000 were used as gap funding to cover rent, provide access to nutritious food, and support their own employees as they worked to find their footing in a shaky economy.

NCIFCares Coaching Program and Evidence-based Impact

Of the NCIFCares II grantees and eligible NCIFICares I grantees, NCIF will select fifty (50) small businesses for one-on-one coaching. Each small business will be paired with a business professional to receive 10 individualized, virtual coaching sessions. Coaches support the business owner with strategic change and/or pivoting that grows sales, profits, assets, and employees. Coaching will commence in the fall and conclude by year-end.

NCIFCares Coaching is in partnership with the Rustandy Center, who will recruit coaches from the University of Chicago and partner with NCIF to conduct research, and Grow Movement, a social enterprise whose coaching methodology, project management, and technology platform supports the program.

The University of Chicago and NCIF will conduct research on the efficacy of the NCIFCares Coaching program. The study will focus on identifying the impact of the coaching on small businesses in comparison to the small businesses that received only a grant. The team will evaluate changes in financial and impact performance, and the value and influence of NCIF Network Banks.

NCIFCares Coaching is inspired by path breaking research led by Professor Pradeep Chintagunta at Chicago Booth and co-authors, in partnership with Grow Movement, which demonstrated the effectiveness of this kind of coaching among small businesses in Uganda. NCIF is leveraging Profressor Chintaguna’s expertise to study the efficacy of this coaching model in the U.S.

Leveraging the NCIF Network Banks

One key attribute of the NCIFCares programs is the role of the NCIF Network Banks that are anchor financial institutions providing products and services otherwise unavailable to many low-income and minority communities. During this health and economic crisis, NCIF Network Banks have provided stability in their communities. In continuing its mission, NCIF created NCIFCares to leverage the banks’ local knowledge and access to provide emergency support to small businesses.

With the launch of NCIFCares II and Coaching Programs, NCIF Network Banks continue to be uniquely positioned to support its small business customers’ needs and to understand the value and impact of NCIFCares—particularly the coaching pilot—on short- and long-term business outcomes. NCIF Network Banks will identify customers that meet the eligibility criteria and support the customer through the grant and coaching processes. They play a critical role in the small business’s completion of the program and, more importantly, as a resource to the small business, the coach, and the collaboration team to ensure the lasting effect of coaching.

A Theory of Change

Evidence-based Impact

NCIF is an impact investor and a CDFI that has a Theory of Change focusing on creating long-term social and economic impact in underserved communities in the U.S. It seeks to create jobs and a robust environment of small and large businesses by providing financial products and services that would not otherwise have been available. NCIF is the largest investor in CDFI and Minority Banks in the U.S. and considers them as anchor institutions.

NCIF Vision Statement

The National Community Investment Fund envisions a society where all communities have access to responsibly priced financial products and services and where investors take fully into account social and environmental impact as well as financial returns.

NCIF Mission

National Community Investment Fund invests capital in and lends with institutions that increase access to responsible financial products and services, catalyze the development of projects that provide economic opportunities, and improve the quality of life in underserved communities nationally.

NCIF complements its investing and lending activities with knowledge transfer and technical assistance to scale impact. NCIF seeks to generate balanced social and financial returns to enhance long-term sustainability.