WASHINGTON--(BUSINESS WIRE)--The Siemens Foundation and Northern Trust today announced a commitment of $10 million to two Community Development Financial Institutions Funds (CDFI), PeopleFund and Disability Opportunity Fund (DOF), to support social equity and entrepreneurial success in underserved communities. This investment follows an initial $10M investment from the partners in January 2021 to two CDFIs in the affordable housing and community clinic sectors, totaling a $20 million investment in CDFIs in just over a year. The Siemens Foundation and Northern Trust partnered to identify the CDFIs selected and facilitate the investments.
“The Siemens Foundation is committed to economic, social and racial justice for all in the United States, and core to that mission is narrowing the opportunity gap in underserved communities,” said Barbara Humpton, Chair of the Siemens Foundation Board of Directors and CEO of Siemens USA. “We’re proud to double-down on our investment this year in partnership with Northern Trust, as CDFIs play a vital role in communities who too often lack support and access to capital.”
CDFIs provide low-income and low-wealth communities with the capital they need for meaningful economic opportunity and development. According to the U.S. Department of the Treasury’s CDFI Fund, there are 1,000 CDFIs operating nationwide. CDFIs are market-based, collaborative vehicles that bring together diverse private and public sector investors to drive economic opportunity in low-income communities. CDFIs continue to grow in size and impact, and to support community transformation.
“At Northern Trust we seek to use our community development capital investments to create positive, sustainable change in communities where we live and work, and we are pleased to work with the Siemens Foundation to support social equity and entrepreneurial success in underserved communities,” said Kimberly Evans, Head of Corporate Sustainability, Inclusion and Social Impact at Northern Trust. “This fits our impact first-investment strategy with a focus on innovation as we deploy low-cost, patient capital to create long-term positive change.”
According to the U.S. Small Business Administration, Veterans are 45 percent more likely to start their own business. However, the Institute for Veterans and Military Families share veterans cite accessing capital as a top challenge in starting and growing a business.
With the investment from Northern Trust and the Siemens Foundation, PeopleFund will use the proceeds for its new Veteran Loan Fund. Launched earlier this year, the Veteran Loan Fund brings together the expertise and strengths of member CDFIs to serve veteran entrepreneurs across the country, by supporting them and providing technical assistance in lower-income communities.
“Veteran and disabled communities comprise a significant portion of our population, and yet they disproportionately lack access to capital,” said David Etzwiler, CEO of Siemens Foundation. “We’re honored to support DOF and PeopleFund who are doing incredible work to support these communities.”
According to the American Community Survey, approximately 700,000 disabled workers are self-employed. A sizable number of these workers could become successful entrepreneurs, but there is a lack of access to resources, assets, and capital. And according to Barclays, when customers with disabilities are able to better manage their money, economic vulnerability declines and overall economic health improves.
The DOF advocates for bringing financial solutions for low-income individuals with disabilities, which has been an underserved demographic. DOF will use the proceeds from Northern Trust and the Siemens Foundation to originate loans to individuals and organizations serving the disabled population throughout the United States, with a focus on affordable housing, schools, and vocational training centers.
For more information on the Siemens Foundation, visit siemens-foundation.org.
About the Siemens Foundation
The Siemens Foundation has invested more than $138 million in the United States to advance equitable workforce development and education initiatives in science, technology, engineering, and math. Its mission is inspired by the culture of innovation, research and continuous learning that is the hallmark of Siemens’ companies. The Foundation is committed to economic, social, and racial justice for all in the United States, and together the programs at the Siemens Foundation are narrowing the opportunity gap for young people in the U.S. and igniting and sustaining today’s STEM workforce and tomorrow’s scientists and engineers.
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has a global presence with offices in 22 U.S. states and Washington, D.C., and across 23 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of December 31, 2021, Northern Trust had assets under custody/administration of US$16.2 trillion, and assets under management of US$1.6 trillion. For more than 130 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Please visit our website or follow us on Twitter.
Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S. Please read our global and regulatory information.