November 1st 2023.
The Groundbreak Coalition, a group of over 40 philanthropic organizations and corporations, has achieved a remarkable milestone in its efforts to boost Black ownership of homes, businesses, and developments in the Twin Cities area of Minnesota. In less than a year, they have raised almost $1B towards closing the racial wealth gap, according to the Star Tribute.
"What makes this unique is that we're not just trying to raise a fund, we're trying to create fundamental change," said Tonya Allen, president of the McKnight Foundation in Minneapolis. "We are changing the rules and the way capital grows, and that is a game-changer."
The coalition was established in 2022 in response to the death of George Floyd and the subsequent riots in Minneapolis and St. Paul. Their goal is to address the longstanding racial wealth gap for Black and Indigenous Minnesota residents.
"We're doing this work because we believe that everyone, regardless of their race or background, should have the opportunity to be prosperous," Allen said. "If we do this work together and do it smartly, it's not just about those individual people; it's about the magnified, amplified effect that will happen in our region."
Unfortunately, there is still a wide disparity between white and Black homeownership in the state. Only 1/3 of Black Minnesotans own homes, while 78% of white residents are homeowners, making them the racial group least likely to own a home in the state.
The coalition is determined to solve the issues faced by Black Minnesotans - and many citizens in other states - who are discriminated against by banks and other lending institutions when trying to purchase a home. They are implementing tools such as special loans with financial assistance, startup funding for Black entrepreneurs, and commercial mortgage loans to level the playing field for Black-led neighborhood developments.
"People are being creative, innovative, and bold in their thinking," Allen said. "If we can change the rules of how banking institutions work, we can create long-term, systemic change."
Minnesota is one of the few states that is still taking action to fulfill the promises made after Floyd's death. Allen attributes this to the understanding of the need to close the racial divide to prevent further tragedies.
"We know the ramifications if we do nothing," she said. "We will be the role models for the rest of the country on how to solve these challenges."
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