The Entrepreneur Backed Assets (EBA) Fund is a new nonprofit born out of collaboration among the Aspen Institute’s Business Ownership Initiative, the community development financial institutions that are members of Aspen’s Microfinance Impact Collaborative (MIC), and Revolve. EBA Fund is an innovative new financial tool that will strengthen the capacity of CDFIs to lend to small businesses in low-income communities and those owned by people of color by creating a secondary market for their microloans. Click here to read the press release.
CDFIs have stepped up to support small business owners affected by the pandemic but doing so has strained their liquidity and financial strength. EBA Fund is empowering these crucial institutions by purchasing existing loans, providing capital for new lending. With capital raised to date we have completed transactions with five of the six MIC members; 78% of the loans purchased are to entrepreneurs of color and 78% to businesses located in low- to moderate-income census tracts. To learn more about EBA fund, visit ebafund.org.