Siemens Foundation and Northern Trust Commit Additional $10M Investment in Community Development Financial Institutions in Their Continued Effort to Support Social Equity in Underserved Communities

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.