Kansas City Credit Enhancement Fund

The Kansas City Credit Enhancement Fund creates greater access to capital for small businesses in the Kansas City metro area by providing incentives for banks, CDFIs, and other lending institutions to invest in businesses owned and operated by entrepreneurs in low- and moderate-income neighborhoods, especially those who are Black, Indigenous, and people of color.

Why is the Kauffman Foundation involved in how banks lend to entrepreneurs?

We know from both research and experience that the majority of entrepreneurs are not adequately supported by existing capital and investment structures.

That’s why the Foundation works hard – alongside our many grantees and partners – to identify and deploy innovative models for creating more equitable access to capital for underrepresented entrepreneurs. The Kansas City Credit Enhancement Fund is one such innovative model.

How can Kansas City-area lenders get involved?

One way the Fund is working to reach more entrepreneurs is through the launch of a Loan Loss Reserve Program, which will work with approved lenders to provide loan loss reserve funds that support lending to entrepreneurs in low-and moderate-income neighborhoods, especially those who are Black, Indigenous, and people of color.

If you are a Kansas City-area bank, CDFI, or other lending institution interested in participating in our Loan Loss Reserve Program, please find more details and an application available from the program administrator, LOCUS.

Together, these tools can help banks and bankers re-define “risk” and chart a better path toward responsible, equitable lending.