Investing to solve the racial wealth gap. Venture philanthropy to solve the friends and family gap for entrepreneurs who don't have a rich uncle. Equity to give them runway to be able to access loan funds.

1. Community
Equity Fund
Partners for Equity in Economic
Mobility and Community Development
EAGLE MARKET STREET DEVELOPMENT
CORPORATION
EAGLE
MARKET
STREET
DEVELOPMENT
CORPORATION

2. EMSDC
INTRODUCTION
Our Mission & Focus:
Mission
• …Develop people, property, and business
and envision equitable, inclusive economy
for all
Focus
• Improving the lives of Black and Brown
communities by means of:
⚬ Opportunity
⚬ Empowerment
⚬ Awareness
⚬ Education
Founded in 1994 under the leadership of Dr. John H. Grant and the auspice of
Mt. Zion Missionary Baptist Church.

3. Programs:
EMPL, LLC
⸙Residential and Commercial Leasing
Incubate to Innovate
⸙Commercial Leasing @ Discounted Rates
Individual Development Account (IDA) Community Equity Fund
⸙
Nontraditional Capitalization for Small Business
Community Benefit Partner
⸙Fiscal Sponsorship

4. THE CHALLENGE:
A NON-TRADITIONAL FINANCING
MODEL FOR
BLACK AND BROWN BUSINESSES
Global Pandemic • 50% of Black and Brown Business are at risk nationally during COVID-19
• If you don’t know when your customers are coming back, taking on debt is
irresponsible
• Many Black and Brown businesses still do not have access to loans
Not A Time for Debt

5. THE CHALLENGE – CONT’D
…the Wealth Gap
In a 2019 survey--European American families were found
to have the highest level of both median and mean family
wealth: $188,200 and $983,400, respectively Black and
Hispanic families have considerably less wealth than
European American families. Black families' median and
mean wealth is less than 15 percent that of European
American families, at $24,100 and $142,500, respectively.
Hispanic families' median and mean wealth is $36,100 and
$165,500, respectively. Other families—the median,
reflecting the concentration of wealth at the top of the
wealth distribution for each group.
(https://www.federalreserve.gov/)

6. Community Equity Fund Community Champions The Business
WHERE TO
START
THE FUND, equity capital injections for Black
and Brown Businesses.
Funded through philanthropic contributions
from Foundations, individuals and from
repayment* from the businesses.
*Business’ repayment is through a % of
revenue sharing (7% maximum)
Local Black and Brown Businesses,
Businesses who have been in operations
for 3-5 years and have annual revenues of
$50,000 or greater.
• They may or not have the capacity to
attract or take on debt.
WE INVITE YOU TO INVEST INTO YOUR
COMMUNITY, You become a Community
Champion, a partner in CEF your donation is
tax deductible.
You will have the opportunity to share in
creating legacy Black and Brown businesses
and helping them on the path to building
intergenerational wealth.

7. A Case Study:
Bread & Butter - Coffee and Co-Working Space
Bread & Butter, led by two African American males with strong
business experience and producing gross in annual revenues
of $100k
The Business
Location of the business and nearby market assessments
assess the comparable value for the business @
$150,000
Comparable Value
Community Equity Fund, provides an injection of $30,000-
$50,000 in equity capital into the business for 20% revenue
ownership stake in the business for the life of the transaction,
approximately 24-60 mos.
Capital Injection

8. Life Span
Flow of
Injection
After a 24 mos. grace period, Bread &
Butter’s (B & B) revenues grows to a
minimum of $200,000.
Beginning in month 25, B & B begins
repayment to the fund, 7% of annual
gross revenues, payable or quarterly or
annually, typically repayment period =
3/5 years.
At full repayment the Fund receives
150% return on capital invested.
EAGLE MARKET STREET DEVELOPMENT CORPORATION

9. $45,000 = 150%
Allocation of Dividends
EAGLE MARKET STREET DEVELOPMENT CORPORATION
$30, 000 – Community Equity Fund – 100%
$9,000 - Management Fee – 30%
$6,000 – Reserve Account – 20%

10. REPLICATION ACROSS THE
FUND
The fund continues to receive
100% of the return from the
revenue dividends shares from
each equity injection. 100% of that
return is invested again
30% is applied as a management fee
20% is held in reserves
Success: Black & Brown businesses
create intergenerational wealth and build
legacy businesses.
The fund secures a $150,000 loan
guarantee, to cover potential failures
rates of 15%.
EAGLE MARKET STREET DEVELOPMENT CORPORATION
01 02 03
"Your donation continues to cycle through your community."

11. Relevant business advisory support from professional
providers with financial management, asset building
and wealth creation expertise will help ensure:
B & B and other Black and Brown owned businesses
become, remain solvent, having used the 24 months
of runway offered by an equity injection, repayment of
seven percent of annual revenue to the fund, helps
them build credit worthiness.
AFTER FRIENDS AND FAMILY FUNDING
"The Community Equity Fund acts like a virtual
rich relative, providing friends and family support to
entrepreneurs who lack access to traditional sources
of capital. This is a “key”, missing link in the path to
creating intergenerational wealth for Black and
Brown families. We plan to make this model
replicable to other cities and towns to solve the
friends and family gap for entrepreneur
EAGLE MARKET STREET DEVELOPMENT CORPORATION

12. Contact Us
We'd love to talk about
the details of
EMSDC Community Equity Fund
Stephanie Swepson-Twitty
Phone Number
(828) 281-1227
Email Address
info@eaglemarketsts.org
Website
https://www.eaglemarketsts.org
EAGLE MARKET STREET DEVELOPMENT CORPORATION

13. EMSDC COMMUNITY EQUITY
FUND ADVISORS
Meet the Team
Eagle Market Streets Fund Manager
Edward Jones Fund Repository
Kevin Doyle Jones Fundraiser and Strategist
Michael Smith Fundraiser and Strategist
Franzi Charen Marketing and Promotion
Mt. BizWorks Underwriter Team Leader
Just Economics Community Engagement
EAGLE MARKET STREET DEVELOPMENT CORPORATION

14. BUSINESS ADVISORY
PARTNERS
Edward Jones
Carolina Small Business Development Fund
Mountain BizWorks
EAGLE MARKET STREET DEVELOPMENT CORPORATION