SCF began its operations as a foundation in 2011. It was born out of a mission-centered economic development company, National New Markets Fund. SCF operates as a revolving investment fund to achieve our poverty alleviation mission. Primarily we support financial inclusion strategies that are seeking to build more equitable access to capital resources for underserved and low-income communities.
SCF also has unique operational priorities (see below)—to achieve 100% social impacts on our usable assets to maximize our positive societal impacts, and by offering “innovation capital” to ensure that the most promising new and unique approaches to reduce poverty can be launched and brought to scale.
In 2019, SCF received certification as a Community Development Finance Institution (CDFI), which ensures that our financial inclusion goals will remain a strong priority as we continue to evolve as an organization.
Achieving 100% Social Impacts
SCF seeks to activate as much of its usable assets to achieve positive social impacts—working towards the goal of 100%. To accomplish this, our investment activity is undertaken with the mandate to only pursue impact investments that achieve mission-aligned or broader social impacts. SCF does not typically provide grants to its investees.
To date, our portfolio consists of 100% impact investments that take the following forms:
In addition, SCF pursues its 100% social impacts goal by keeping the majority of our cash holdings in impact generating accounts (i.e. CDFI credit unions and banks).
Innovation Capital Provider
SCF provides innovation capital to entities, such as CDFIs and other lending organizations, that are developing or implementing new models or approaches to address the root causes or contributors of poverty and inequality.
These initiatives:
Focus Areas
The entities and initiatives SCF invest in to benefit low-income, distressed and underserved communities and individuals target the following focal areas:
Supports CDFI Entities
As a certified Community Development Financial Institution (CDFI), SCF makes at least 60% of its annual investments into other CDFI entities. Thus, we prioritize investments into CDFI entities that are generating mission-aligned impacts for SCF’s targeted communities and beneficiaries.
Technical Assistance Provider
SCF not only provides our investees with the capital needed to fund their program activities, but we also offer strategic resources and technical assistance to help them achieve their organizational and programmatic goals. We seek to not only be a funder, but a partner in facilitating the success of our investees. We bring to bear our own internal knowledge base, as well as that of our broad relationship network across the fields of community and economic development, to help address our investees core challenges and goals. Some areas we have offered investees assistance in include funding strategies, partnering relationships, knowledge-area tutorials, research, etc.