Five Case Studies

Evaluating Social Impact Across Our Wisconsin Communities: FIVE CASE STUDIES

Evaluating Social Impact Across Our Wisconsin Communities: Five Case Studies

AUTHOR Rebecca Paradiso de Sayu, PhD, MSW, BCC Program/Social Impact Director Invest in Wisconsin

Contents I. Overview 1 II. Social Impact 2 III. Methodology 4 IV. Case Studies 5 V. Preliminary Results 16 VI. Next Steps 19 References 20 Appendix: Case Study Interview Guide 21

January 2018 Acknowledgements

In 2015, Invest in Wisconsin was awarded a $2.68 million The author of this report, Rebecca Paradiso de Sayu, grant by the JPMorgan Chase Foundation. The grant, as well as the entire Invest in Wisconsin team – Craig part of the Foundation’s PRO (Partnerships for Raising Anderson, Wendy Baumann, Lesley Hutchins, Salli Opportunity in Neighborhoods) Initiative, has enabled Martyniak, and Mary Patoka – would also like to express Invest in Wisconsin to promote economic opportunities our gratitude to all of the borrowers who participated in and reduce disparities throughout rural Wisconsin via a one-on-one interviews to share their impact stories: five-city hub strategy. Allen Danforth PRO Neighborhoods is designed to give Community Go-Green Painting, LLC Development Financial Institutions (CDFIs) the flexibility Green Bay, Wisconsin to work together on community challenges in their city or region and to develop innovative financing options Heather Deegan for projects that are unable to qualify for traditional Buttons & Bolts Fabric & Quilting Supply, Inc. loans. The program consists of more than $14 million in Salem, Wisconsin grants to five programs nationwide that are dedicated Stacy Warner to creating sustainable solutions to significant economic Home Owner challenges in our communities. Stevens Point, Wisconsin

On behalf of Invest in Wisconsin, we express our Abha Thakkar heartfelt thanks to the JPMorgan Chase Foundation Northside Planning Council (FEED Kitchens) for supporting our work. Madison, Wisconsin

Marlo Mielke One City Early Learning Centers Madison, Wisconsin

Learning from borrower feedback is a critical evaluation tool that allows us to grow and hone our strategies to support even greater community impact. Thank you for your time, patience and thoughtfulness!

Invest in Wisconsin believes that when we work together to support community development, everyone achieves more. Overview

In 2015, the opportunity to submit a proposal Learning of this knowledge gap among community to the JPMorgan Chase Foundation PRO leaders, as well as potential borrowers, Invest Neighborhoods Initiative – a grant supporting in Wisconsin partners took action, organizing the work of Community Development Financial the first ever CDFI Day at the Wisconsin State Institutions (CDFIs) collaboratives – united four Capitol where we engaged state leaders around leading Wisconsin-based CDFIs. The partnering the important work of our Wisconsin CDFIs. organizations that comprise Invest in Wisconsin Connecting with legislators and their staff allowed include: Community Assets for People, LLC, us to share stories of our impact and critical First American Capital Corporation, Forward resources that constituents regularly seek from Community Investments and The Wisconsin their state legislators. Find a summary of our CDFI Women’s Business Initiative Corporation. Day at the Wisconsin State Capitol at www.investinwisconsin.org.

Committed to creating economic opportunities for low-income and people of color in rural Wisconsin, Invest in Wisconsin works to: (a) address challenges facing Wisconsin for- profit businesses, nonprofits and residents lacking adequate access to capital; (b) grow the capacity of the individual member CDFIs, and; (c) expand and network resources of Invest in Wisconsin to work together more effectively toward greater community impact. To further raise awareness around the community impact of CDFIs, Invest in Wisconsin embarked After receiving a JPMorgan Chase Foundation upon a series of borrower case studies. The PRO Neighborhoods award in late 2015, Invest in purpose was to elevate borrower stories and distill Wisconsin partners quickly got to work listening the social impacts of our financial and technical and learning from our Wisconsin communities. services, which is the focus of this report.We In 2016, we conducted a series of community discuss the meaning of social impact and how we listening sessions held in five hub regions across involve multiple stakeholders in understanding the state: Madison, Racine, Appleton, Green how our work affects change in Wisconsin. We Bay and Eau Claire. Lessons learned suggested describe our approach, using a multiple-case that while a variety of community and economic study design featuring five Invest in Wisconsin development resources exist throughout the state, borrowers. Next, we include summaries of each of the availability and awareness of services and our cases, including insights from our borrowers programming is inconsistent. coupled with lessons from previous research. From the cases, we outline preliminary results and identify next steps to further our work to measure and evaluate the social impact of CDFIs.

Invest in Wisconsin | 1 Social Impact

Although there is not a universal definition, in general, social impact is considered to be the net effect of the activities, programs, services, projects and policies experienced by individuals, families and/or communities.1,2,3 The lack of a consistent definition poses challenges to measurement and evaluation efforts and, as such, can lead to multiple approaches to assessing and valuing change.

Despite the challenges that surround inconsistent definitions, there are guiding values and standards common to the study of social impact. The organization, Social Impact Scotland4, outlines three principles common to the study of social impact that include:

1. Involving Stakeholders Involving stakeholders refers to the inclusion of all parties interested in the outcomes of a particular entity either affected by or affecting the activity to be assessed, i.e. understanding how individuals involved in delivering and receiving an activity perceive a change (outcome).

2. Understanding and Articulating Change Understanding and articulating change suggests that in order to make informed decisions and to provide activities/services that produce positive impacts, we need to consider how change happens for multiple stakeholders. For Invest in Wisconsin, we began our social impact journey by developing a logic model that outlines the inputs, activities, outputs, outcomes and assumptions around how we believe our collaborative helps to facilitate positive changes in the lives of our borrowers. The principle of involving stakeholders is critical to test our assumptions around those factors that CDFIs believe affect change versus the realities of other stakeholders, in particular, our borrowers.

3. Being Transparent Finally, being transparent reminds us that regardless of our approach, no social impact assessment can be entirely objective. Thus it is imperative to outline our assumptions – and the decisions made on account of those assumptions – as well as known limitations of our approach.

2 | Invest in Wisconsin To be clear on our interpretation as it pertains to this report, social impact will be discussed as self-reported borrower benefits experienced on account of Invest in Wisconsin services – both financial and technical. Understanding how clients experience services provides a variety of critical information. Specifically, borrower feedback can illuminate particular services or activities that are particularly useful – or not – and help to allocate resources accordingly.

In addition, once themes are generated – i.e. factors that are most significant in terms of creating social impact – CDFIs can be more precise in collecting and analyzing data that can help to monetize the effects of the social impacts. For example, if borrowers consistently discuss the importance of a particular type of technical assistance that has been integral to their success or wellbeing, CDFIs can determine the monetary value of the time, resources and supplies necessary to provide this service. With increased specificity around the components that contribute to positive social impacts, the industry can more accurately report our value to the communities we serve, funders and the wider public.

Invest in Wisconsin | 3 Methodology

In order to assess how Invest in Wisconsin borrowers understand and experience the social impact of the loans and services provided by the partnering organizations, a series of five case studies was conducted in 2017. Case study design is commonly used in evaluation studies to gain a deeper understanding of stakeholder experiences5. We designed a multiple-case study approach that covers the breadth of lending activities and geographies covered by Invest in Wisconsin partners.

Multiple-case study designs allow for the analysis Still, there are limitations of our approach. While of themes within and across cases6. As such, we Invest in Wisconsin partners were deliberate in were intentional to select cases across our hub choosing a variety of borrowers, cases selected regions (Madison, Racine, Green Bay, Appleton represent a fraction of the total clients served by and Eau Claire) and that captured small business, Invest in Wisconsin partners. Future work could housing, nonprofit and consumer lending. We include additional borrower case studies to further collected various forms of data for each of the strength the validity and reliability of our findings. case studies, including borrower files, websites In addition, the case studies were conducted over and media publications, research and one-on- a relatively short period of time, offering only one interviews with featured borrowers at their a snapshot of borrower experiences. Because organization, business or place of residence. The borrower circumstances may change over time, interviews were particularly important in helping we intend to follow-up with borrowers annually in us to learn how borrowers believe working with order to collect longitudinal data that can help to Invest in Wisconsin partners impacted their illuminate changes over time. lives, as well as the lives of their families and communities. See the Appendix for the interview guide used to facilitate the conversations.

4 | Invest in Wisconsin Case Studies

To better understand the catalytic role that CFDIs play in improving community conditions, we turned to our borrowers for their stories. We asked them how their lives had changed since receiving an investment from the Invest in Wisconsin partners. We learned of the myriad of social, economic and health benefits that can occur when traditionally underserved communities receive the financial and technical support needed to thrive. Given the diversity of lending products offered by Invest in Wisconsin, our case studies shed light on the potential social impact of lending across small business, nonprofit and consumer lending. The next section provides case study reports from the borrowers interviewed.

5 CASE STUDY GO-Green Painting

Background

While small businesses contribute to economic growth and development, communities of color disproportionately benefit from the advantages of small business ownership. In fact, minority business owners are underrepresented in small business ownership overall,7 with Native American owned businesses accounting for the second smallest number of firms that are minority owned.8 See figure below.9

While people of color are underrepresented in U.S. Innovative financing resources, including Community markets, growth of minority owned businesses is Development Financial Institutions (CDFIs), have helped rising, including those that are Native American to fuel this success. The following is a story from a Native owned.7,9 For Native communities, an increase in small American business owner in Green Bay, Wisconsin. business ownership transcends the rewards of wealth development10,11 and provides an opening for a “Native American-led economy that asserts sovereignty and supports sustainable economic well-being”.10 (p. 56)

6 Allen’s Story

After 30 years working as a painter – fraught with seasonal work and lay-offs – Allen Danforth was ready for a change. He had a potential that others could see. After painting a residential property, the homeowner – impressed with Allen’s work and professionalism – asked, “Why doesn’t someone like you have his own business?” Allen took the comment to heart. Later that day, Allen went to Bay Bank in Green Bay to deposit the check from the job. There he encountered Jeff Bowman, an acquaintance from their grade school days. The two started talking, and Allen learned that Jeff was the president and CEO of the bank. Throughout their conversation, Allen’s interest in starting a business came up. Jeff suggested that he attend a seminar on business development hosted by First American Capital Corporation (FACC), a Wisconsin CDFI serving Native Social Impact American communities. Allen had heard about the event and decided to attend at Jeff’s urging. As his business took off, Allen hired his adult daughters to work part-time. The family grew closer as they From there, Allen recounted a series of seemingly spent more time together. Allen also hired other “unbelievable” events. Jeff connected Allen with Craig Native workers in his community. Allen continued his Anderson, the Executive Director of FACC. Craig steered education, earning a minority business enterprise (MBE) Allen to a variety of free technical assistance seminars certification. His additional credentials provided more and classes, such as an introduction to QuickBooks. job opportunities. These days, Allen regularly receives In addition, Craig secured funding for Allen to receive multiple bids for his services, even more than he has marketing and accounting support. Allen found the capacity to respond to – a good problem to have! classes extremely helpful, knowing that his biggest challenge would be the administrative office work With his success, Allen feels a sense of purpose and required for the business. Next, Allen obtained a loan has a different outlook on life; he has started feeling with FACC. Armed with capital and a new skill-set, Allen successful. In addition, as his own boss, Allen can take was ready to launch. advantage of a more flexible work schedule. He can take time to tend to his health without fear of losing his job. In 2012, Allen started Go-Green Painting LLC, which In addition, Allen experienced an increased sense of offers a variety of residential and commercial services. confidence, noting, “People treat you differently when The learning curve was steep. From workmen’s you are a business owner.” compensation, to overhead costs and joint ventures, Allen felt the struggle to keep up and to make ends meet. Today, Go Green Paining, LLC continues to thrive. Allen He kept in communication with his mentors at FACC and is still in touch with Craig Anderson at FACC and Jeff Bay Bank, who offered support and additional technical Bowman at Bay Bank. He can count on them for support coaching. Allen repeatedly mentioned that he felt his as his business needs change and grow. We look forward business would have failed in the first year without to keeping in touch with Allen to hear about what is next the backing of Craig and Jeff. “You’re on your own as a for Go Green Painting, LLC! business owner, said Allen. “You really need support”.

7 CASE STUDY Buttons & Bolts

Background

Throughout the world, female entrepreneurship is on the rise. Women-owned businesses add trillions of dollars to the global economy in yearly earned income.12 With the passage of the United States Women’s Business Ownership Act of 1988, women-owned businesses have more than doubled nationally,13 with both the number of businesses owned by women and the percentage of businesses owned by women continuing to grow (see figure to the right14 ).

Despite these successes, female business-owners continue to face challenges to entrepreneurial development and growth disproportionate to their male counterparts. Issues concerning fair access to capital, limited training and technical assistance options, and challenges to receive government contracts13 coupled with stereotyping, coping with work-life balance and the demands of motherhood and limited networking opportunities12 all contribute to the impenetrable glass ceiling. And these barriers are compounded for women of color.15

For female-business owners, getting connected with resources – both capitol and technical assistance – are critical to achieving success. Here we meet a female entrepreneur in Salem, Wisconsin who found the support that she needed from her local community development financial institution (CDFI) to pursue her small business dreams!

8 Heather’s Story

When her local quilt shop closed, Heather Deegan saw a need arise in her community. There was not another quilt shop in a 20-mile radius, and finding high-end products online was challenging—the look and feel of products is not easy to appraise unless you know exactly which brands to buy. And the big box stores were great on prices but low in quality. Tired of the lack of options, Heather decided that she wanted to open her own store.

In 2010, Heather attended a Small Business Since receiving her loan, Heather keeps in contact with Administration seminar at the Wisconsin Women’s her WWBIC advisor. She trusts her advisor to know the Business Initiative Corporation (WWBIC). She loved small business market in her area and to provide sound the class and applied for funding at her bank. Heather advice. For example, Heather is considering whether to was approved for a loan, but she and her husband were expand her business to include sellings sewing machines nervous about making the move to self-employment. in addition to quilting materials. For questions like these, Heather can turn to WWBIC for support. When her job responsibilities changed in 2013, Heather felt frustrated with the trajectory of her professional Heather and her employees stay up-to-date on the latest career. She returned to her bank to reapply for a loan. materials and techniques by attending trade shows and Unfortunately, due to changes in the loan criteria, classes. She also offers her customers the chance to Heather’s bank told her she was no longer eligible. provide input on what she carriers. For example, when customers commented that there was a lack of blue Looking for a creative solution, Heather returned to fabrics available, Heather updated her inventory. Despite WWBIC. She was delighted by the knowledgeable staff, the risks of steering off on her own business path, Heather many previous business owners themselves, who really feels she made the right choice. “It’s like the movie, Field understood her needs. Heather felt she was treated as of Dreams”, laughed Heather, “At a certain point, you have a person rather than a number. Feeling more confident, to believe that if you build it, they will come”! she learned how to write a business plan and present it to a supportive audience. Heather was soon approved for a loan.

Social Impact

With advising from WWBIC, and the mindset of supporting her customers’ success, Heather has created an environment that her customers know and love. Most of her new customers are referred by word-of-mouth, and Heather prides herself on the personal relationships that she has built with her community. “We aren’t just selling fabric, we offer a service.” Heather feels pride in the value-based standard of quality that she provides her customers – “we stand for something here…it’s more than just the bottom line”. Reflecting on her ever-evolving role as a small business owner, Heather described the ways her life has changed. Now when she goes to work in the morning, Heather says she is doing something she loves. Her work ethic and business savvy have grown – she feels she is more perceptive about shortfalls of other businesses, and she is constantly learning. Heather is honest that the stresses of being a small business owner are real. Heather works 7 days a week and has a tough time getting a day off. Yet, friends and family close to her say she is more relaxed and happier in her new role. Heather has 2 employees that provide her with flexibility in her own schedule. Heather also enjoys giving back to her community. From creating quilts for patients at a local cancer treatment center to saving quilting scraps to create unique pillows for local animal shelters, Heather’s work warms her community. 9 CASE STUDY CAfP

Background

The 2008 housing crisis and subsequent economic recession had devastating effects on U.S. families and communities.16 Millions of homeowners were in a position of owing more to lenders than their homes were worth17, and consequently, more than 2% of all U.S. homes received foreclosure notices.18

Over the past few years, the housing market has made a steady recovery – with a recent report from the Wisconsin Realtors Association showing that sales of existing homes reached unprecedented heights in 2016.19 However, low and middle-income and minority families have not recovered at the same rate from the economic effects of the recession as other families. As a result, these families are struggling to establish their footing in an increasingly competitive housing market.17,20

The inability to participate in the housing market has far reaching implications for affected families. Research suggests that home ownership is correlated with a myriad of financial, social, educational, and health benefits. These include the ability to borrow against home equity, protection from rising rental prices, having a safe place to live and a sense of control over one’s living space, greater autonomy and life satisfaction, and a sense of connections to one’s community.21 Without the opportunity for homeownership, families and communities are unable to enjoy these advantages.

Below we meet a borrower, Stacy Warner, who recently made the exciting move to homeownership in Stevens Point, Wisconsin!

10 Social Impact

Beyond the financial benefits that she experienced in making the move to home ownership, the key advantages that Stacy has gained cannot be monetized. “The feeling of being settled somewhere – ever in comparison to a long-term rental situation – is unparalleled”. Stacy also noted that owning her house has given her a home - not just a place to live, which she says is “pretty empowering”. “Independence is important to me. Going through this Stacy Warner’s Story process and having my own house has given me the ultimate freedom. I can say now that I did it. I can handle After her divorce eleven years ago, Stacy Warner it, and I can take care of my home”. moved to an apartment with her children. When her rent continued to increase without any improvements In addition, having the house has been wonderful for to her accommodations, Stacy was ready to consider Stacy’s two sons. The house has given them more new living arrangements. Talking with a colleague who responsibilities, which Stacy feels good about in terms of had experienced a similar situation, Stacy learned about providing opportunities for them to gain experiences for CAP Services and Community Assets for People (CAfP) when they move out and have their own homes. Her older in Stevens Point that together provide down payment son recently graduated high school and lives in the lofted and rehab assistance to income eligible households (up space in the home that Stacy describes as “like his own to 80% county median income). The program provides apartment”. “It’s great because my son is able to have his low-rate simple interest loans with payments deferred own space – his own life, and we can still share the space for up to 30 years (or sooner if the home is sold or is no together”. longer the primary residence of the buyer). Households may also secure financing to make improvements in their homes to meet the U.S. Department of Housing and Urban Development’s Housing Quality Standards. Eager to learn more, Stacy contacted CAP Services and was connected with a homebuyer advocate, Nancy Thiede.

Before meeting with Nancy, Stacy confessed that she “was afraid to do anything! I was so scared and had no idea where to start”. Fortunately, meeting Nancy quickly put her at ease. Nancy was relatable and worked with Stacy to determine her eligibility for down payment assistance. Once she was approved, Nancy quickly assembled what Stacy referred to as her “dream team”. The team included Nancy/CAP Services, a lender at the local credit union, and a realtor. The team had worked together before and were able to provide seamless support, timely communication and patience to answer any questions. Stacy was delighted with her experience, “it was like these people appeared, and everything started to happen”! Though the housing market was tight, Stacy’s relator was able to get her an early showing for a house that she knew would be perfect for Stacy and her family. Stacy knew it was the house for her as soon as she Stacy is now comfortable in her new home and thrilled saw it! With the support of her team, Stacy was able to to have received additional rehab assistance from CAP close on the house of her dreams and to provide a stable Services and CAfP. She is in the midst of interviewing home for her children. Reflecting on her experience, contractors and watching her dream home come Stacy noted that “financially, you don’t realize that you together. We wish Stacy and her family all the best in could actually save money owning a house rather than their new home and look forward to receiving updates renting and have more square footage. I had no idea”. once the renovations are complete!

11 CASE STUDY One City Early Learning Centers

Background

Early childhood is a critical time for development in children that helps to shape cognitive, emotional, social and physical growth over a lifetime.22,23,24 Many factors play a role in positive development in young children including biology, the environment, nutrition and education.25,26,27 In particular, quality early childhood education has been linked to more advanced communication and socialization, better health outcomes, increased earning potential, and reductions in crime. 22,23,26

Research from economics Nobel Laureate James Heckman finds that “the rate of return for investment in quality education for disadvantaged children is 7-10% per annum”23 given the multiple positive impacts that education plays in reducing social costs. Ensuring that all children – regardless of race, socioeconomic status or geography – have access to quality early childhood education is a social justice and economic imperative crucial to the future success of all children and their “The rate of return for investment in quality families.23 Next we learn about an early childhood learning center in Madison, Wisconsin that is on a early education for disadvantaged children is mission to provide a fun and safe learning environment 7-10% per annum through better outcomes for all children and their families. in education, health, sociability, economic productivity and reduced crime.” - James Heckman Nobel Laureate in Economics

12 One City Early Learning Centers’ Story

One City Early Learning Centers opened its doors in late 2015 in a neighborhood that Vice President and Center Director, Marlo Mielke, describes as an “early childhood education desert”. Located on Madison’s Southside, the center is situated in one of the most racially, ethnically and economically diverse neighborhoods in Wisconsin. According to Mielke, parents have been searching for quality childcare in their neighborhood, where stories of parents commuting long hours to access affordable care were common. For some families, children had been dis-enrolled from other early education centers for behavioral and learning difficulties more common among low-resourced communities, and they were eager to find childcare where the staff understood their unique circumstance.

“Some of our kids are recovering from trauma”, says Mielke. “We want One City to be a place where kids can come to have fun and feel safe and where parents don’t have to worry. We want to gain their trust”.

Getting the school up and running has been a work in progress – first opening its doors at The Fountain of Life Church while waiting for their current space to be available. The staff and leadership are optimistic that the Social Impact investment of time and resources in the community will One City’s Founder / President / CEO, Kaleem Caire pay-off. likes to say that the children at One City Early Learning One City Early Learning Centers has long been supported Centers receive the “Cadillac Experience”, where quality by their local Community Development Financial and high standards lead to success. Institution (CDFI), Forward Community Investments An example of the high-quality conditions that children (FCI), which made access to their facility possible, as and their families can expect is reflected in the daily meal well as provided mentorship opportunities to the board service, where a local chef-inspired menu incorporates of directors. Mielke shared her enthusiasm for FCI’s fresh or frozen fresh produce and no canned products. collaboration. Reflecting on the first time she met FCI’s “It’s amazing to see their [students] thinking popping executive director, Salli Martyniak, Mielke shares that when the kids are not worrying about their basic needs”, she was surprised and delighted when Martyniak invited says Mielke. In addition, high quality teachers are a must. her to a day-long tour of other early childhood learning Speaking with the Carol Spoehr, Lead Early Childhood centers in Milwaukee that are FCI clients. “I was sure Educator, she notes that after working for 30 years in the there would be a car full of others going with us, but it field of early childhood education, she has never felt more was just me! It’s not often that a leader in the community appreciated than at One City Early Learning Centers, takes so much personal time to spend with you”. which the kids can feel.

With such big dreams and high expectations, One City Moreover, One City Early Learning Centers is tapping Early Learning Centers understands feels the weight into a higher mission that organizations across the of their commitment to the community: “We are country are trying to address: How to create spaces accountable to the students”, says Mielke. “Every child for all families, including those who experience poverty has a right to play and a right to be loved. That’s why and homelessness, alongside children of families where we’re here”. parents are pursing graduate degrees. “At One City, we have students whose parents are PhD students and others whose parents work at McDonalds. We all live here together” says Mielke. At the school, children are able to see and talk about class, race and other topics that can be highly stigmatized and hard to talk about in other spaces. Here, staff use the differences as “teachable moments” that set kids on a path to be more inclusive and complex thinkers from an early age.

13 CASE STUDY FEED Kitchens

Background

In cities and countries throughout the world, food systems are central to building sustainable local economies and creating jobs.28 In the United States alone, there is a $1.8 trillion food industry that represents nearly 18% of the economy.29 Given the magnitude of the market, a range of community and economic development models leverage food systems to create economic opportunities and to increase community capacity.30 One such approach to food systems is a business incubator model. Incubator programs provide wrap-around support to startup and early-stage businesses with the goal of developing financially viable companies.31 Services within a food incubator model can include: skills training, food safety and regulation education, business and technical assistance, resources around access to capital, as well as space and equipment for food preparation, packaging, storage, distribution, retailing in stores and online and connections to potential buyers and consumers.28,31,32 Food incubators are appealing to start-ups because they remove many of the costs of leasing or purchasing a commercial kitchen space and equipment and lower the risk of early failures by proving wrap-around support.31,32

14 FEED Kitchens’ Story

In November of 2013, Food Enterprise & Economic Development (FEED) Kitchens opened, offering food vendors an accessible, affordable and professional commercial kitchen space. Located on Madison’s Northside, FEED Kitchens is a project of the Northside Planning Council (NPC), and home to nearly 80 food businesses including bakers, caterers, professional chefs, coffee roasters, meat smokers, sauce makers, spice mixers and cake decorators. FEED Kitchens is managed by Adam Haen, a seasoned Wisconsin chef and expert navigator when it comes to helping food businesses complete licensing and approval processes, as well as finding markets and making connections for their products and services. In 2016, NPC added the FEED Bakery Training Program and Healthy Food for All, providing additional opportunities and resources to low-income residents on the Northside and beyond.

“At every turn, FCI has provided everything we need –consolidation and refinancing, support, great interest rates, New Market Tax Credits, staff time, and sound advice. The staff at FCI treated us with such respect – even when I didn’t have the financial vocabulary. We love our relationship with FCI because we never have to worry; they never try to sell us anything. They work to facilitate our mission, and we wouldn’t be here without them”.

However, getting FEED Kitchens up and running has Social Impact been no small undertaking. In addition to the specialized nature of building a commercial kitchen, FEED Kitchens’ The socioeconomic benefits of FEED Kitchens are many. business model is unique, and not all lenders got it when “The members of FEED Kitchens are deeply invested it was first pitched to bankers. Fortunately, Invest in in the space”, says Thakkar. “In many instances, FEED Wisconsin partner Forward Community Investments Kitchens literally facilitates [members’] livelihood”. The (FCI) saw the potential right away and was able to model for FEED Kitchens focuses on building the local provide a $265,000 loan. Reflecting on her experience food economy from the bottom-up and including a with FCI, NPC’s Executive Director, Abha Thakkar, says diverse group of vendors. Nearly half of the vendors are that the relationship is FEED Kitchens’ “most valuable owned by people of color, women and veterans, which is partnership”. consistent with findings from other food incubators that have had success in promoting racial and gender equity in Moreover, a second Invest in Wisconsin partner, the the food industry. In general, over half of food incubator Wisconsin Women’s Business Initiative Corporation participants are female and over a third are minorities.31 (WWBIC), has developed a unique partnership with FEED Kitchens. While WWBIC provides financial and Research also suggests that shared-use technical support to several FEED vendors, Haen delivers commercial kitchens: food business development training to several WWBIC clients – even if they are not FEED vendors – through can have many positive local economic impacts on NPC’s MarketReady Program. Thakkar is pleased the community. Since all parts of the food system are with the collaboration between FEED Kitchens and dramatically affected by the creation of a shared- WWBIC noting the “symbiotic relationship” between the use kitchen (farmers, suppliers, marketers, printers, organizations. For Invest in Wisconsin, FEED serves as a packagers, buyers, and consumers), the economy is unique example of how our partners have come together impacted in all parts of the process…A shared-use to provide a myriad of financial and technical assistance commercial kitchen can also heighten social well- services to support a thriving neighborhood program. being and emphasize the importance of local public engagement. These kitchens can increase food security by making locally grown foods available year round. Since locally produced products are likely to be fresher and less processed, increasing community access to these foods is better for human health. The kitchens can also provide work opportunities for community members in need.30 (p10) Invest in Wisconsin partners are proud to support FEED Kitchens and their vendors, and we look forward to their continued success!

15 Preliminary Results

Based on learnings from the five case studies, here we share preliminary results from borrower interviews. These stories reflect common themes of impact, growth and wellbeing at the personal, family and community-levels from the borrower perspective. Next we define each of the themes and proceed to provide borrower examples and stories.

Autonomy Refers to an increase in flexibility, the ability to set one’s schedule and influence one’s environment to best suit personal needs. The borrowers we interviewed described the myriad of benefits that came along with starting their own companies. Allen Danforth of Go-Green Painting, LLC shared how the ability to make his own schedule provided more than convenience. When health issues required his immediate attention, he was able to take time off of work without the fear of job loss. Also, as a small business owner, Allen had the ability to hire his daughters to work for the company providing additional time and bonding with his family.

Likewise, Heather Deegan of Buttons & Bolts Fabric & Quilting Supply, Inc. described the luxury of making her own work schedule. That said, she was quick to point out that as a small business owner, it can be hard to get time off, and the hours are long. Still, her friends and family say that Heather seems happier and relaxed since gaining the freedoms of small business ownership.

At FEED Kitchens, access 24 hours a day, 7 days a week and hourly rates allows vendors the freedom to create a routine that works for their schedule and budget. Likewise, Stacy Warner, a borrower who received down payment and rehab assistance to purchase her own home, has created a shared space for her family to spend time together. Stacy’s older son recently graduated high school and lives in the lofted space in the house.

16 | Invest in Wisconsin Equity Refers to addressing issues of racial, socioeconomic and gender injustices and taking steps to address disparities. The borrowers discussed opportunities to address racial, socioeconomic and gender equity in the lives of the clients they serve. At One City Early Learning Centers, Vice President and Center Director, Marlo Mielke, discussed the importance of creating a learning environment for all children across racial and socioeconomic groups. “At One City, we have students whose parents are PhD students and others whose parents work at McDonald…We all live here together”, says Mielke. Creating young learners who can talk about and appreciate a variety of lived experiences sets children on a path for more holistic and inclusive learning; helping to break down social barriers that can be hard to address later in life. Students also have access to quality teachers and healthy foods, allowing students to focus on learning rather than worrying about their basic needs.

At FEED Kitchens, Executive Director, Abha Thakkar, shared the organization’s commitment to addressing issues of racial and gender equity in the food industry by offering space for a diverse group of vendors. Nearly half of the venders are people of color, women and veterans. In addition, providing access to commercial grade kitchen equipment and preparation space cuts down significantly on the start-up costs in the food industry, allowing for lower and lower- middle income clients to start their businesses. “The vendors are extremely invested in the space”, said Thakkar… “In some cases, FEED Kitchens facilitates their livelihood”.

Giving Back Refers to the ability to leverage personal & professional success for the benefit of others. At Go-Green Painting, LLC, Allen Danforth is concerned with supporting members of his Native Community. Allen has hired local native workers to support their professional growth. At Buttons & Bolts Fabric & Quilting Supply, Inc., Heather Deegan supports members of her community by creating quilts to donate to a local cancer center, as well as using scrap materials to create unique dog beds for her furry friends at local animal shelters. Both Allen and Heather highlighted the importance of supporting their staff and the communities that they serve, recognizing that successful entrepreneurs work to build strong, authentic relationships with everyone they connect with for their businesses.

Invest in Wisconsin | 17 Outlook Change Refers to positive changes in mindset around self-concept and self-worth due to growth in personal or professional capacity, knowledge or experiences. The borrowers discussed the sense of pride, confidence and success that they have experienced since receiving their loans. Allen Danforth of Go-Green Painting, LLC noted: “People treat you differently when you are a business owner”. Additionally, Allen received a Minority Business Enterprise (MBE) certification after starting his business that lead to growth in business opportunities. “I now feel like I have a place at the table with other business leaders,” said Allen.

Heather Deegan of Buttons & Bolts Fabric & Quilting Supply, Inc. explained the pride she feels in growing a customer base that thrives on personal relationships and value-based standards. “We aren’t just selling fabric, we’re offering a service”, says Heather. Heather is constantly learning on the job and feels accomplished knowing her work ethic and business savvy continue to rise.

Likewise, Stacy Warner shared her feelings of empowerment, independence and peace upon receiving support from Invest in Wisconsin partners. “Independence is important to me” says Stacy. “Going through this process and having my own house has given me the ultimate freedom. I can say now that I did it. I can handle it, and I can take care of my home”. In addition, Stacy’s new home has offered her sons opportunities for their own growth and independence. Stacy is pleased that her boys have more responsibilities around the house and are gaining critical skills that will serve them throughout their lives.

These are just samples of the many social impacts that Invest in Wisconsin borrowers have experienced on account of working with the collaborative. It is important to note that all five borrowers focus on the value of the relationships, mentorship and services that they received from the Invest in Wisconsin partners. While it is difficult to separate the impacts of the financial, technical – and arguably, emotional – support that borrowers received, what we learned from the interviews is that as we evaluate Social Return on Invest (SROI) models in our future work, we will be diligent to place value the role of the multiple support services that clients receive in addition to their loan when working with CDFIs.

18 | Invest in Wisconsin Next steps

As discussed, we will follow-up with borrowers highlighted in the case studies annually in order to assess how they experience the social impacts of the loans and services provided by the Invest in Wisconsin partners. Longitudinal data allows for observations over time, giving greater insight into the sequence of events that lead to specific social impacts and outcomes. As we collect additional data, we can be more confident that our assumptions about the factors that contribute to greater social impacts are in fact valid. As we continue to evaluate and update our financial and technical services offerings, we can trust that the data we are using to inform our decisions are based on robust client feedback in addition to a variety of other data points.

In addition to developing our case studies, Invest challenges of data collection and analysis across in Wisconsin is in the midst of implementing a organizations! From questions related to how social impact assessment platform. Developed by metrics are defined, to differences in the data SoPact, the TurboMetrics platform allows Invest collected and reported depending upon loan in Wisconsin to aggregate quantitative data products, we have started to amass a list of lessons facilitating data visualization, theme development learned throughout the implementation process and SROI modeling. Invest in Wisconsin is in that we look forward to sharing with other CDFIs the beginning stages of utilizing the platform as we continue to grow and learn! and already we are learning first-hand the

Invest in Wisconsin | 19

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1. Borrower Background

Can you tell me about [your organization OR your business OR yourself]?

What is [your organization’s OR business’s] mission?

What communities do you serve?

Groups of people

Geographic area

2. Experience Partnering with Invest in Wisconsin

How did you learn about Invest in Wisconsin?

What issue – if any – were you facing when you approached Invest in Wisconsin? Prompt: Had you tried to access capital from banks, credit unions or other funding agencies before working with Invest in Wisconsin? What was your experience with the other organizations?

Can you tell me about your experience working with Invest in Wisconsin?

What did you find most helpful about working with Invest in Wisconsin?

What could have been better about your work with Invest in Wisconsin?

3. Social Impact/Value

Where would [your organization OR your - OR - What have been the greatest impacts/values/ business OR you] be today had it not been for benefits that [your organization OR your the support of Invest in Wisconsin? business OR you] has had to you? ...to your employees? ...to your community?

Prompt: Job creation; proving a needed service; employing minority populations, etc.

4. Telling Your Story

How would you like to provide feedback on the case study that we develop?

22 | Invest in Wisconsin

(608) 204-8832, Ext. 832 investinwisconsin.org [email protected]