Integrated capital fund brings nearly 240 investors together to build community wealth and prevent displacement in New England
BOSTON–Boston Impact Initiative (BII), a nonprofit impact investment fund and certified Community Development Financial Institution (CDFI), today announced the final close of its Fund II on December 31, 2025, raising over $22 million in total commitments from nearly 240 investors across 24 states in the United States, including individuals, donor-advised funds, nonprofits, foundations, faith-based organizations, and impact funds. To date, BII has cumulatively deployed over $20 million in integrated capital —debt, equity and grants—across more than 100 small businesses, nonprofits and community-controlled real estate projects in New England.
BII raised 10% more than its $20 million target for Fund II, with 30% of investors returning from Fund I, reflecting strong investor demand for BII’s democratized approach to impact investing. BII Fund II invests in social enterprises advancing inclusion, climate resilience, and worker power, plus community-owned and controlled real estate in New England. Through its innovative note structure, Fund II welcomed both accredited and non-accredited investors, with investments ranging from $1,000 to $1 million.
The note structure offers three tiers: Community Notes at 5% for non-accredited investors ranging from $1,000 to $25,000; Solidarity Notes at 3% for accredited investors; and Philanthropic Notes at 1% for accredited investors – ranging from $10,000 to $3 million. This tiered approach enabled nearly 240 investors to participate in community wealth building, with many first-time impact investors joining BII’s mission.
This structure reflects BII’s commitment to building an investor base that mirrors the communities we serve. Unlike conventional impact funds that limit participation to wealthy accredited investors, Fund II welcomed community members investing alongside institutional investors committing millions.
“The overwhelming support for Fund II validates our integrated capital model that serves entrepreneurs who have been excluded from traditional capital markets—particularly entrepreneurs of color—with the patient, non-extractive capital needed to build generational wealth, said Betty Francisco, CEO of BII. Every dollar invested represents a vote for an economy that builds wealth with communities, not extracts it from them.”
The successful close comes at a critical moment. Despite two years of challenging market conditions marked by a pull back by institutional investors and backlash on racial equity investing, BII attracted values-aligned investors who recognize that building an equitable economy requires moving capital differently. With wealth inequality at historic highs and community displacement accelerating across New England, patient capital deployed through community-based institutions like BII is essential infrastructure for economic justice.
Fund II has already deployed $10.4 million into 29 enterprises that support over 1000 jobs and real estate projects that preserved or created 700 units of affordable housing. Portfolio companies include 88 Acres, florrent, Nuevo Dia Adult Day Health, and East Boston Neighborhood Trust.
BII’s integrated capital model blends debt financing with flexible loan terms, patient non-extractive equity for long-term growth, and grants for capacity building and technical assistance. This approach recognizes that early-stage, mission-driven enterprises require different forms of capital at different stages, and that community wealth building cannot rely on extractive models that prioritize financial returns over community impact.
Fund II aims to grow generational wealth by increasing business ownership for diverse entrepreneurs building sustainable enterprises that prioritize living wage jobs, worker ownership, local procurement and environmental stewardship. Beyond capital, BII provides technical assistance through coaching, expert-led advising, and legal support to ensure portfolio companies can thrive.
In 2025, BII supported 111 businesses with technical assistance, and invested $4.2 million through Fund II in enterprises advancing housing justice, mental health equity, and clean energy. BII also launched the First Mover Fund, a $5 million pilot to invest in emerging impact funds nationally.
About Boston Impact Initiative (BII)
BII is a nonprofit impact investing fund and certified Community Development Financial Institution (CDFI) that invests in people, places and enterprises building community ownership, shared wealth, and economic power, particularly in communities of color. Since 2017, BII has invested over $20 million across 100 small businesses and community-controlled real estate projects in New England. Through the ARC Fellowship, BII has trained over 90 impact fund managers to launch community-based impact funds, with 22 already raising and investing nationwide. To learn more, visit bostonimpact.org.
Statements are made as of the date of this release, and there is no implication that the information contained herein is correct as of any time after such date.
Media Contact: Aliana Pineiro, [email protected]