McLennan Community Investment Fund seeks $100,000 for 2026 funding to enhance local loans

The McLennan Community Investment Fund (McSith) presented a compelling case for funding during the recent McLennan County Commissioners' Court meeting, seeking $100,000 for the fiscal year 2026. This request is part of a broader strategy to enhance economic growth and stability in underserved communities within McLennan County.

McSith, a certified community development financial institution (CDFI), aims to bridge the economic opportunity gaps faced by small business owners in low and moderate-income areas. Since its inception in 2020, the organization has deployed nearly $700,000 across 48 loans, with over 80% directed to businesses in economically distressed neighborhoods. The organization serves 29 low-income census tracts, addressing the needs of residents who are often underbanked or unbanked.

During the presentation, McSith highlighted the significant economic challenges in the region, including a median household income of approximately $47,421 in Waco, which is notably lower than the national average. The poverty rate in Waco stands at 24.8%, underscoring the urgent need for accessible financial resources and support for local entrepreneurs.

The funding request is part of a strategic growth plan aimed at raising $2.25 million over the next five years. This plan includes hiring additional staff, diversifying loan products, and enhancing marketing efforts to increase community awareness of McSith's services. The organization aims to transition into a self-sustaining loan fund that can continue to support economic development in the area.

McSith's leadership emphasized the multiplier effect of investing in community development, noting that every dollar invested in a CDFI typically generates eight dollars in community impact. The requested funds will be split equally between increasing the loan fund and providing operational support, which is crucial for maintaining and expanding their services.

In conclusion, the Commissioners' Court's decision on this funding request will play a pivotal role in empowering local businesses and fostering economic resilience in McLennan County. The partnership between McSith and the county is seen as a vital step toward creating pathways to prosperity for the region's underserved communities.