By Revolve Fund
Q: Tell us about your work and background.
A: Born and raised in Detroit, Michigan, I received my bachelor’s and law degrees from the University of Michigan. First working in law and then launching a social enterprise, I stepped into my first impact investing role at the W.K. Kellogg Foundation. I moved to the Annie E. Casey Foundation afterwards, relocating to Baltimore in 2018.
While at Casey, I led notable Baltimore-focused investments and strategies such as the development of the Baltimore Small Business Support Fund, the philanthropic precursor to the Baltimore BASE Network and impact investments in the Harbor Bank of Maryland Community Development Corporation and Latino Economic Development Corporation.
Through the abovementioned roles along with leading Revolve Fund, I’ve managed or co-managed $250 million-plus in impact investing-related assets of equity, debt, recoverable and traditional grants and direct investments. This has included leading investments in affordable housing, financial inclusion, quality job creation and community development.
Q: What is Revolve Fund?
A: Revolve Fund increases affordable capital access for small businesses or tax-exempt organizations led by historically marginalized entrepreneurs. I founded Revolve in 2020 and launched the project in 2022. Since its inception, the fund has raised $3.6 million, deployed $1.6 million so far in recoverable and traditional grants and catalyzed $84.6 million in additional capital access for Revolve’s grantees. For the over $1 million recoverable grants deployed, if recipients do not meet certain financial metrics due to unforeseen circumstances, they do not have to repay. Our recoverable grantees undergo an extensive review process as we want to ensure there are always funds for other grantees but also place grantees in the best position to grow. While most Revolve Fund grantees are based in Baltimore, the fund has invested in groups in over a dozen states.
Q: Tell us about recoverable grants.
A: Revolve offers several products and supports, but recoverable grants are the most notable offering. A recoverable grant is a grant to a for-profit or nonprofit entity where all or part of the investment is returned when financial or impact goals of a grantee are met. For tax and accounting purposes, recoverable grants are commonly treated as assets, not liabilities, by both the grantor and the grantee. Recoverable grants are not a zero percent loan, a forgivable loan, or other financial product that include typical loan-related provisions.
Q: Why does Revolve exist?
A: In every community, there are people making a difference and driving change. These leaders are abundant with ideas and vision and sometimes need additional resources to fuel those dreams. Our goal is to place capital within the reach of those who wake up every day committed to making a difference.
Q: Tell us about your grantees.
A: Revolve Fund grantees are pioneering industry-shifting work. For instance, one Revolve Fund grantee (Just Futures) is working to help organizations align their finances with their social justice values. They offer various investment solutions including 401(k) and 403(b) retirement plans to help small businesses attract and retain staff. They also ensure that people committed to missional work can retire with dignity. Just Futures and Revolve have partnered to help mitigate startup costs for retirement plans. This is pivotal because initial startup costs for retirement plans are cost-prohibitive for many small businesses and non-profits.
Another Revolve grantee was able to secure a $20,000 increase in her company’s line of credit from their bank and a $141,000 line of credit at a separate bank. The grantee credits the initial seed investment from Revolve with giving her the confidence to approach a traditional bank and ask for assistance.
Other grantees include the women’s wellness company, Amani Nicol Wellness; the organic feminine care company, Femly; an emerging community development financial institution, Rochdale Capital; a community-oriented medical practice, Strong Children Wellness; and the social good public relations firm, Spotlight PR LLC, among others. Each recoverable grant is custom-designed and includes agreed upon repayment milestones to be achieved within a certain term.
Q: What kind of impact are you having?A: We know that our investments yield measurable results. As mentioned before, although Revolve has deployed over $1.6 million, grantees have been able to raise an additional $84.6 million in funding. That means that our initial investment has helped our grantee partners to not only grow but raise more capital. We aim to send a critical message. We believe in the groups we fund, and we hope future investors will too.