A "Black Lives Matter" sign is seen in the window of an Eastern Bank branch in downtown Boston in 2020. Banker & Tradesman file photo
The Foundation for Business Equity, a Boston-based nonprofit organization founded by Eastern Bank to support small business owners of color, has merged with Mill Cities Community Investments, a Lawrence-based community development financial institution.
Eastern Bank and the Foundation for Business Equity said in a statement yesterday that FBE’s planned spinoff was a step toward strengthening the nonprofit’s services and extending its impact. Eastern Bank had created FBE in 2017 with a $10 million grant “as part of its deep and long-standing commitment to address the racial wealth inequities, and drive greater economic inclusion and mobility,” the statement said. The organization now has $13 million in support.
“As part of Eastern Bank’s commitment to address wealth inequities, a need which the Federal Reserve Bank of Boston’s 2015 Color of Wealth report very clearly brought to bear, we could not have imagined the far-reaching impact that the Foundation for Business Equity would already have on our region,” Bob Rivers, Eastern Bank’s CEO and board chair, said in the statement. “The work is just beginning to dismantle the systemic barriers that prevent opportunity for our communities of color and we look forward to FBE’s continued success, now with MCCI’s know-how and knowledge, and to continue to engage with other partners in the community around this issue.”
FBE helps business build capacity and provides advisory services through the Business Equity Initiative, which has helped more than 90 local businesses generate $120 million in new revenue. This program will continue following the merger, the statement said. MCCI offers low-cost loan programs, small business training and technical assistance in low- and moderate-income communities and under-resourced populations in the Merrimack Valley and across Massachusetts.
Glynn Lloyd, who is executive director of both FBE and MCCI, will lead the combined entity, with the integration process to be completed over the next year.
“The last five years have led the way to this moment, and we’re extremely grateful for Eastern Bank’s ongoing commitment and support of the Foundation for Business Equity through its launch and ramp-up,” Lloyd said in the statement. “Merging with MCCI is a natural next step for our organizations, and we are excited to officially work together to build an even more expansive organization focused on dismantling economic and racial inequities.”
The merger will give BEI businesses and graduates access to new low-interest loans and equity capital products, the statement said. MCCI began offering loans to BEI businesses in 2019, and the partnership has seen BEI businesses receive $3.2 million in capital.
“Advancing equity in our small business ecosystem is a critical focus area for the Eastern Bank Foundation where we strive to create stronger economic inclusion and greater mobility,” Nancy Huntington Stager, president and CEO of the Eastern Bank Foundation, said in the statement. “In my role as Board President of FBE and now as a new member of the MCCI board, I’ve observed the synergies, natural alignment and dedication of these two organizations to keep advancing this work. The Eastern Bank Foundation is proud to have incubated the Foundation for Business Equity and help it to reach this next stage of growth with the MCCI team.”
