GroundBreak Coalition: Finance Solutions to Address Wealth Disparities

The Twin Cities region faces significant racial and economic disparities, with the economic gap between Black and white families being among the highest in the United States. These issues were highlighted by two events in 2020: the COVID-19 pandemic, which disproportionately affected BIPOC communities and exacerbated existing inequalities; and the murder of George Floyd, which led to civil unrest and damage to commercial areas in Minneapolis and St. Paul.

In response, the GroundBreak Coalition was formed in 2022. This initiative brings together 40 regional business, civic, philanthropic, and government leaders to develop a 10-year, $5.3 billion plan informed by hundreds of community members. The goal is to expand wealth-building opportunities through homeownership, entrepreneurship, commercial development, and rental housing by leveraging flexible resources and private-market capital.

As of December 2023, nearly $1 billion has been pledged by Bremer Bank, Bush Foundation, GHR Foundation, Huntington Bank, M.A. Mortenson Company, Margaret A. Cargill Philanthropies, McKnight Foundation, Pohlad Family Foundation, Securian Financial, The Nathan Cummings Foundation, and U.S. Bank. These funds come in the form of market-rate loans, low-cost patient loans, grants, and guarantees.

The Coalition offers diverse investment opportunities, ranging from grants and recoverable donor advised funds to low-cost patient loans and asset pledges for guarantees. Each invested dollar is designed to unlock over three times the amount in mainstream bank lending.

This session, co-hosted by MCF and GroundBreak Coalition, will explain how the initiative aims to address systemic racism, rectify historical inequities, and close racial income and wealth gaps. Attendees will learn about participation options in this capital alignment effort for wealth creation in the Twin Cities.

Presenters

Jeff Aguy is CEO of 2043 Corp and a key project team leader of the GroundBreak Coalition since April 2024. Jeff is a dynamic leader on a mission to transform global financial systems and leadership structures. With expertise in leadership, the economy, and finance, he is spearheading regional economic initiatives set to generate over $25 billion in economic activity over the next decade. Jeff has advised senior executives across all 50 states, two U.S. territories, and leaders in Europe and Asia. His visionary guidance is shaping the future of global finance and leadership.

Ben Hecht is Senior Advisor to the McKnight Foundation and a key project team leader of the GroundBreak Coalition since 2022. Hecht is the founder of Reclaiming the Dream, a strategic advisory consulting firm. With a background in law and accounting, he specializes in systems that combine public, private, and philanthropic capital for large-scale social change. He previously served as President and CEO of Living Cities, a collaborative of 18 major foundations and financial institutions.

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