When banks and other lending institutions consider who they’re financing, they also need to consider what they’re financing and its impact on the community.
Childcare is a good example. Lancaster has larger gaps in early childhood programs than the state, according to Kids Count (The Annie E. Casey Foundation | Pa. Partnerships for Children.) These programs support academic and emotional growth and help kids enter kindergarten ready to learn. That readiness feeds into stronger high school graduation rates, which is just 83% for Latinos nationally. And a diploma opens the door to better-paying work, which lowers poverty and grows the local economy.
More childcare facilities also means more seats, and a bigger and better future workforce. AND it also benefits the workforce of today; reliable childcare helps working parents and their employers who are estimated to lose $23 billion annually to childcare-related employee absences and turnover.
Financing these projects is also beneficial for business; Developers and investors can receive incentives like New Markets Tax Credits for work in lower-income communities.