OZ Magazine Volume2.1 2.1 | Page 43

LEVERAGING OPPORTUNITY ZONES TO SAVE OUR SMALL BUSINESSES
43 present a truly unique situation where investors can achieve both the personal financial benefits of a traditional investment , as well as the broader community benefits typically associated with philanthropy .
OZ investors can realize financial returns while contributing to a more equitable and inclusive financial system . The tools and partners are already in place for facilitating direct investments in small businesses and in innovative community wealth building tools . Additional legislation is needed to broaden the reach of OZs so that CDFIs can further enhance the impact of this capital .
Philanthropy and government assistance alone aren ’ t going to save our small businesses . Thriving regional economies rely on the kind of patient , friendly investment capital OZs are designed to stimulate . The time has come to leverage all the tools in our toolbox . It ’ s time for OZs to live up to all the hype .
Emily Lecuyer is the director of impact investments at AltCap and the managing director of Equity2 , an AltCap affiliated impact investment firm . Specializing in utilizing innovative investment products and specialty tax credit financing tools to drive a more inclusive and equitable financial system , Lecuyer oversees AltCap ’ s investment activity spanning tax credit and equity placements .
Previously , Lecuyer held a range of positions in banking and has a well-rounded perspective on financial entity operations and small business management . She earned a B . A . in sociology and anthropology from Truman State University and a Master of Business Administration with an emphasis in finance from the University of Missouri ’ s Bloch School of Management .
Sources :
1 McKinsey & Company Which small businesses are most vulnerable to COVID-19 — and when , June 18 , 2020
2 https :// www . irs . gov / newsroom / opportunity-zones
3 Novogradac , “ Novogradac Opportunity Funds List Surpasses $ 12 Billion in Investment ” September 1 , 2020
4 Project Equity , Small business closure crisis .
5 Aspen Institute , Exploring Employee Share Ownership as a Potential Investment Strategy in Opportunity Zones , December 18 , 2018 .
6 Mercy Corps CIT , A Missing Piece in Community Wealth Building : The Community Investment Trust - Financial Ownership and Real Equity
7 A Way Forward for Small Businesses ( hbr . org )
8 Next Street , “ The Equity Capital Gap for Entrepreneurs of Color in Chicago ”
9 US Department of the Treasury , Community Development Financial Institutions Fund New
Markets Tax Credit Program
10 H . R . 7262 To amend the Internal Revenue Code of 1986 to allow qualified opportunity funds to
invest in community development financial institutions .
OPPORTUNITYZONE . COM