Happy Holidays, my friends! Today we’re rereleasing a fan favorite - my conversation with Ruben Alonso, CEO of AltCap. AltCap is a mission-driven community development financial institution (CDFI) operating across multiple states and based in Kansas City. Ruben has propelled AltCap's growth for 15 years, channeling over $300 million in alternative financing towards underserved communities and often-overlooked entrepreneurs. Noteworthy is Ruben's recent launch of AltCap's RBF loan product, opening new avenues for entrepreneurs. Ruben's unwavering dedication to democratizing capital access is deeply rooted in his family's own immigrant story from Cuba during the late 1950s and early 60s. Join us as Ruben provides valuable insights and firsthand experiences in advancing financial inclusivity and fostering small business triumph.
Key Takeaways
[3:31] The journey from corporate America, to the Peace Corps, to AltCap.
[5:53] How Ruben’s family roots from Cuba informs his desire to help build other businesses.
[8:57] How AltCap got started and how it has grown.
[12:48] What CDFIs are, and how they operate.
[16:30] Lending is a volume business, and maintaining the impact ethos.
[18:48] How they built and evolved their underwriting models.
[19:49] The character based lending approach.
[22:19] The benefits of using Ned’s end-to-end system to originate and manage loans.
[25:00] Examples of RBF deals they have done and where RBF can be a powerful financing tool.
[26:45] The KauffmanFoundation provided them a $5.3 million program related investment to launch an RBF loan fund to help prioritize entrepreneurs of color.
[29:14] The relationship between a funder and borrower.
[35:22] Lessons learned from building a tax credit program to $250M+.
[36:21] The psychology of RBF.
[40:03] Capitalizing AltCap for the future.
[41:26] What entrepreneurs should know about CDFIs.
[47:01] Ruben’s advice for building an alternative capital platform.
Thanks to our sponsor for this episode:
Husch Blackwell - Husch is my go-to law firm for everything related to raising capital, building companies, deploying capital, and everything in between. The partner I work with, Ed Wilson, understands the alternative capital landscape and I can’t recommend him highly enough.
Resources:
RBF Network
Keith’s Twitter
Novel Capital | Ruby Jean’s Juicery
Guest:
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