Helping Equitable Media Access Capital to Increase Reach, Relevance and Revenue

The Challenge:

Black, Latine, Asian and other People of Color-led and -serving media (Equitable Media) operate as the most trusted sources of news and information in the communities they serve and are an essential part of the civic infrastructure needed for ensuring thriving communities, resilient economies and a healthy democracy. However, despite their pivotal role in meeting news and information needs and combating mis/disinformation flowing into and about underserved communities, many Equitable Media outlets are facing financial headwinds that threaten their survival. A primary reason: they lack the capital to make the investments needed to unleash their advertising potential and to tap into the billions spent in the public, private and social sectors on multicultural marketing. That is the bad news.

Here is some good news. In Fall 2021, the Multicultural Media & Correspondents Association (MMCA) partnered with the Donald W. Reynolds Journalism Institute and Democracy Fund Voice to launch the Equitable Media and Economies Initiative, a national effort to create a more just economy and caring democracy by eliminating the blind spot that has kept the community development financing sector from investing in Equitable Media.

https://baltimoretimes-online.com/news/national/2022/02/24/new-collaborative-seeks-to-investment-in-media-organizations-as-critical-civic-infrastructure%EF%BF%BC/

The specific goals are to:

• Equip Equitable Media to report on, contribute to and compete in an equitable economy;
• Promote Equitable Media as critical civic infrastructure;
• Pursue partnerships, revenue strategies and policy changes to fund them as such.

As a result of these efforts, the institutions that fund civic infrastructure — banks, community development finance institutions (CDFIs), socially responsible businesses, and government agencies — are starting to connect the dots between a healthy, diverse economy and a healthy, diverse local media ecosystem.

The Opportunity:

In Fall 2023, MMCA, through its Equitable Media and Economies Initiative, launched an Audience Growth and Monetization Pilot
to address the longstanding gap in technical assistance and community development-related financing available to Equitable Media to increase their reach, relevance, and revenue.

Specifically, the Pilot will help Equitable Media businesses access unsecured, no interest, financing of up to $500,000 from the LISC Diverse Supplier Grant Initiative, sponsored by JPMorgan Chase. The Pilot will also assist Equitable Media businesses in developing and implementing audience growth and monetization strategies and in leveraging the BIPOCXChange, a digital ecosystem designed to unleash the untapped market potential of Equitable Media by connecting them with content and with people and organizations wanting to engage and advertise directly and cross digital platforms with Equitable Media. 

The specific phases for the Pilot are as follows:

1. Business Assessments and Loan Application Submission (3 months)

Phase 1 will consist of completing an in-depth business assessment and pulling together documents required by the LISC loan application. These documents consist of the following:
• Articles of Incorporation
• Certificate of Good Standing
• Last 3 years' business tax returns for owner and business
• 2022 and 2023 year-to-date balance sheet and income statement
• Debt schedule
• Capital request and business growth plan
• Pro forma financials through 2025

2. Implementation and loan servicing (16 months)

Phase 2 will commence after the Pilot Participant completes the required approval process and receives funding from LISC. It begins with sales and other training and tech stack integration and then moves to fully implement the targeted revenue growth strategies. The Pilot Participant will be guided by and provided access to subject matter experts and coaches to assist with implementation.
     

3. Evaluation of Results and Recalibration (3-6 months)

Phase 3 will focus on reporting results, sharing lessons learned and best practices, and recalibrating. It will also include publishing a project assessment and developing a long-term growth plan.

If you are interested in joining the Pilot, Please send an email inquiry to [email protected]. Or if you would like to take the first step in applying for the LISC loan, click the button below. 

Complete LISC's Intake Form to Get Started