One of Maryland’s leading medical networks just announced an eight-figure investment in economic development for local and marginalized communities through notable funding entities.
The University of Maryland Medical System (UMMS) said in a statement Thursday that it would commit $14 million to 11 community development financial institutions and private equity firms across the state. The investment aims to address racial, economic and environmental disparities in the communities served by the system.
Essentially, it is a trickle-down economic investment in historically private communities in Maryland. Investments ranging from $500,000 to $2.5 million will go to Baltimore Community Loan, Conscious Venture Capital Funds, Business community development, FSC first, Flaming Capital, Momentus Capital Impact Investing Program, Acquisitions of Obran, Propel Baltimore, RBC Access Capital, The reinvestment fund and Upsurge. These institutions and businesses will in turn invest these fixed-income and equity-based allocations in local and minority-owned businesses.
“Through these investments, we seek to have positive social, economic and environmental impacts,” Mohan Sunta, president and CEO of UMMS, said in a press release. “Our society and individual member organizations are anchor institutions, and we understand and embrace our responsibility to support efforts that improve the health of our communities – not only through the care we provide, but also by supporting the people who share our goals and aspirations for opportunity and change.
brown notice monitor the community impact and financial return of investments for UMMS.
FSC First and Baltimore Community Lending have already explained how they intend to use the funds to benefit the community.
Shelly Gross Wadechairman and CEO of FSC First, plans to use the million dollars received by the lending partner to provide direct loans to “local minority-owned businesses” that develop new technologies and provide products and services in the Prince George’s County health care sector, the statement said.
Watch Brucepresident and CEO of Baltimore Community Lending, puts his unspecified amount of funds to provide loans to vendors of the new Lexington Market project in downtown Baltimore.
“The UMMS commitment will help us provide financial support and coaching to underserved small businesses and community developers, positioning them for financial stability to access traditional banking products and to achieve long-term success,” said said Bruce in the announcement.
Donte Kirby is a 2020-2022 corps member of Report for America, an initiative of The Groundtruth Project that pairs young journalists with local newsrooms. This position is supported by the Robert W. Deutsch Foundation. -30-