Fund II

About BII

We believe we can build a future where entrepreneurs of color and their communities have the financial, social and political power to create a sustainable, inclusive and equitable economy for generations to come.

Through BII Fund II, a $20 million integrated capital fund, we are transforming the way we deploy financial and social capital. How? By investing integrated capital — primarily patient, non-extractive equity capital — in social enterprises and community-owned or controlled real estate to prevent displacement in Massachusetts and the Northeast. By using catalytic, integrated capital, communities of color will build intergenerational wealth and collective power.

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The Opportunity

By 2045, communities of color will become the new majority of our country—our workforce, our electorate, and our economy.  Businesses owned by entrepreneurs of color generate:

And yet, Massachusetts Black and Latino entrepreneurs have an unmet capital demand of $574 million annually. Only 66 percent of businesses owned by Black and Latino entrepreneurs receive even a portion of the capital they are seeking, significantly less than their white peers.

We recognize the vital role entrepreneurs of color play in our economy and the tremendous funding challenges they face. Through BII Fund II, we seek to fill the growing demand for patient, non-extractive equity capital for high impact enterprises and real estate projects that provide systemic solutions that build power for communities of color.

Investment Themes

BII Fund II invests in social enterprises owned by entrepreneurs of color who are committed to charting new markets, democratizing ownership and decision-making in the workplace, growing climate resilience and providing systemic solutions that build power for communities of color. The fund also invests in commercial and residential real estate projects that support community ownership and control of land to prevent displacement.

Social Enterprises Owned by People of Color

  • Addresses an unmet need or issue affecting communities of color 
  • Builds climate resilience and expands regenerative products, services and solutions that help communities of color adapt to climate change.
  • Grows worker or community power and voice, including co-ops, worker-owned and unionized businesses.

Community-Controlled Real Estate

  • Increases diverse ownership and control over commercial and residential buildings and land, while preventing displacement 
  • Adds tranches of community ownership in real estate 
  • Offers residents and business owners ownership stakes and decision-making in how real estate assets are allocated

Investment Criteria

As impact investors, we evaluate investments across these four criteria.

We also incorporate impact measurement and management at every stage of the investment cycle: impact criteria at due diligence, impact covenants in investment structuring, and impact measurement annually during the life of the investment.

BII Fund II also provides technical assistance, business coaching, connections, and educational programming to support its portfolio investments, strengthen the impact of these enterprises in their communities and improve the effectiveness of entrepreneurial services. 

Notes Offering

BII Fund II is offering the following types of notes to accredited and non-accredited investors:

Community Notes: Debt securities to non-accredited investors residing in Massachusetts, Maine, New York, New Hampshire, Rhode Island, Connecticut and Vermont in amounts ranging from $1,000 to $25,000, with a five (5)-year term and a 5% interest rate per year, renewable for another five (5) years at a 7% interest rate per year.

Solidarity Notes: Debt securities to accredited investors in amounts ranging from $10,000 to $3,000,000, with a ten (10)-year term and a 3% annual interest rate.

Philanthropic Notes: Debt securities to accredited investors in amounts ranging from $10,000 to $2,000,000, with a ten (10)-year term and a 1% annual interest rate.

Note TypeInterest RateMaturity DateSeniorityMin/Max Investment% of Fund
Community Notes
(non-accredited investors)
5% at inception
7% at renewal
Initial: 12/31/2027
Renewal: 12/31/2032
1st$1,000 – $25,0005% or $1M
Solidarity Notes
(accredited investors)
3%12/31/20322nd$10,000 – $3M65% or $13M
Philanthropic Notes
(accredited investors)
1%12/31/20323rd$10,000 – $3M30% or $6M


THIS OVERVIEW IS NOT INTENDED TO BE AND DOES NOT CONSTITUTE AN OFFER, OFFERING AND/OR SOLICITATION OF SECURITIES BY BOSTON IMPACT INITIATIVE FUND OR BOSTON IMPACT INITIATIVE FUND II LLC. Information in this summary should not be considered as advice or a recommendation to investors or potential investors and does not take into account your particular investment objectives, financial situation or needs. Before acting on any information you should read the offering memorandum and seek independent financial and investment advice.

Ready to Invest?

Our investors include individuals, businesses, nonprofits, foundations, faith-based organizations and financial institutions that want to support our investments in enterprises and projects driving racial equity, power-building and shared prosperity for everyone.

Please contact CEO, Betty Francisco, to explore an investment in Fund II.

Investor FAQs

See BII Fund II Investor Frequently Asked Questions for answers to additional questions.

“BII brings deep financing experience and mission commitment to all of its work. I am excited that with BII Fund II, the organization will be applying this to more shared-ownership businesses like cooperatives.”

Micha Josephy

Executive Director, Cooperative Fund of the Northeast

“As a city and a region, we need to build an economy that’s structurally inclusive and equitable. BII Fund II is an important tool that allows regular people to invest in a more equitable and bright future for our city.”

Fund II Community Noteholder

“BII’s investment process asks the hard and right questions on both finance and impact. Its multiracial perspective and deep community and financial expertise equips it to deploy catalytic capital to support innovative models that will drive systemic change. Our world needs more investors like BII.”

David Kemper

CEO, Trust Neighbohoods, partner on the East Boston Neighborhood Trust