Policy Brief: Closing the Capital Gap for Emerging Small-Scale BIPOC Developers

Accessing capital is the most significant hurdle facing emerging small-scale Black, Indigenous and other people of color (BIPOC) real estate developers, and much of that challenge is rooted in the legacies of systemic racism. Emerging small-scale BIPOC developers face a catch-22: They need to work on larger-scale residential developments to grow their real estate portfolio and build their balance sheets to meet prominent investor or lender requirements, but it is nearly impossible to accomplish that without accessing sufficient capital in the first place.

In a new Enterprise policy brief, we examine some of the most significant systemic barriers to financing experienced by emerging small-scale BIPOC-led developers throughout the various stages of real estate development. Additionally, the policy brief discusses innovative solutions designed and implemented by mission-driven housing and community development stakeholders to help address barriers to financing among these developers. In challenging underlying risk assumptions, this brief shows how emerging small-scale BIPOC-led developers can successfully sustain growth of their operations and real estate portfolios when they are provided with access to sufficient capital.

August 30, 2022
Impact Areas
  • Racial Equity
  • Policy