$900 Million Invested to Expand Equity and Generate Wealth in Minneapolis-St. Paul Region
A coalition of over 40 institutions working together to make Minneapolis-St. Paul a more equitable place launched their incredible campaign Tuesday, investing $900 million to increase wealth-building opportunities throughout the region. Dubbed “GroundBreak”, the movement is determined to develop Black homeowners, entrepreneurs, and commercial developers and estimate over $5.3 billion will accumulate over the next decade to create Black wealth.
GroundBreak’s Mission to Redesign the System
GroundBreak, set to kick off in May 2022, is aiming to revolutionize how capital circulates in the area and bring everyone the same fortune when it comes to creating generational wealth. Unfortunately, Black Minnesotans have been facing some of the harshest income gaps in the country with the average median income of white households being approximately $46,500 more than the same measure of Black households according to research.
Jen Ford Reedy, president of the Bush Foundation, believes that up to $4 billion worth of private capital can be raised with the help of this initial investment to whoever desires to buy a house or establish a business. As she puts it, “GroundBreak is about making money already in the financial system do more good in the communities”.
The Pledge: $926 Million to Create Change
As part of the first move of their campaign, the coalition has committed a colossal sum of nearly $1 billion of financial instruments and products. These are expected to be available by the end of 2024 and will be funded with donations from Bremer Bank, the Bush Foundation, GHR Foundation, Huntington Bank, M.A. Mortenson Companies Inc. Margaret A. Cargill Philanthropies, McKnight Foundation, Pohlad Family Foundation, Securian Financial and U.S. Bank.
Tonya Allen, president of the McKnight Foundation, and one of the founders of GroundBreak, celebrated the initial step to unlock the “wholly just, equitable, and abundant Twin Cities” by saying “we want anyone seeking to buy a home or start a business to get the support they need for their dream to become a reality”. Elaborating further, Ford Reedy added that members of the alliance are pledging money to banks to make loans for the pursuance of such goals more achievable.
In addition, the state of Minnesota is offering a $175 million grant to those buying their first home, while Minnesota Housing is partnering with the coalition in order to keep the loans affordable. Furthermore, the coalition will continue to seek capital investments from other state and national sources over the next three to ten years.
Breaking Ground for a Brighter Future: $900 Million Invested in the Minneapolis-St. Paul Region
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