Funding Forward: Innovative Models for Economic Developers
Get the key takeaways on funding economic development projects—featuring proven strategies, innovative capital models, and real-world insights from experts who are reshaping small business support.
Download our exclusive idea worksheet!
Looking for ways to fund your new economic development idea? Grab a copy of our Creative Funding Idea Worksheet!
Creative Funding for Local Economic Growth
If you're looking for innovative ways to fuel your local economic development projects beyond traditional grants, you're in the right place!
We recently hosted a dynamic webinar, "Money Moves: Creative Funding for Local Impact," featuring expert panelists Kristin Leutz (Petra Impact Partners), Adam Engle (Fund for Equitable Business Growth), Anne Lufkin-Riaño (Weaving Impact), and Andre Whittington (Growth Partners Arizona). They pulled back the curtain on real-world strategies for funding inclusive small business growth.
Here’s a recap of their insights, designed to help you build a more resilient and impactful funding roadmap for your community:
Meet Our Experts
Our speakers brought deep experience from both national and grassroots levels—each with a proven track record of funding and scaling economic development initiatives.
Kristen Leutz – CEO, Petra Impact Partners
A national consultant helping cities and organizations build financially sustainable small business ecosystems through philanthropy, ops, and strategic funding.
Adam Engle – Director, Fund for Equitable Business Growth (Chicago Community Trust)
A leader in structuring cross-sector funder collaboratives and ecosystem-wide grantmaking strategies.
Anne Lufkin Riaño – Chief Growth & Impact Officer, Weaving Impact
Anne works at the intersection of community finance and social enterprise, helping cities replicate high-impact programs across geographies.
Andre Whittington – CEO, Growth Partners Arizona
A capital deployment strategist who’s helped channel $30M+ into underserved communities through CDFI lending, public-private partnerships, and ecosystem partnerships.
Session Notes
What is Alternative Funding?
Alternative funding refers to strategies that go beyond traditional government grants to secure financial resources for economic development and small business support. It's about diversifying your revenue streams to create a more sustainable and flexible funding landscape. This approach embraces a mix of funding sources, including:
• Public-private partnerships
• Philanthropy and corporate sponsorships
• Revenue-generating models (even for nonprofits or government entities)
• Social impact investing and innovative financial tools
The goal is to provide impactful, sustainable support to entrepreneurs and drive inclusive economic growth!
Examples of Alternative Funding in Action
Our panelists shared compelling examples of alternative funding strategies:
- Kiva Hubs: Andre Whittington highlighted the Kiva program as an "innovative and amazing resource." It offers zero % interest loans and helps organizations build a proof of concept from the grassroots up, gaining community approval and support. Andre's organization facilitated over $1 million for small businesses through their Kiva Hub in Southern Arizona. Anne Lufkin-Riaño also noted her past work leading partnerships at Kiva US to build microfinance ecosystems.
- Green Loan Programs: Andre also shared their partnership with Local First Arizona for a green loan program. Businesses graduating from a "green boot camp" create plans to reduce costs through green projects, and loans are funded with payments based on the savings they achieve. One Laundromat saved over $160,000 in two years and hired a new employee due to this program.
- Funder Collaboratives: Adam Engle detailed the Fund for Equitable Business Growth in Chicago, a multi-funder collaborative that funds partnerships of business support organizations (BSOs). This intentional design has built a robust small business support network of 35-45 BSOs, increasing collective impact and attracting more funders.
- Strategic Partnerships for Capital & Technical Assistance (TA): Growth Partners Arizona strategically reduced its reliance on federal dollars by focusing on capital deployment and financial education. They then partnered with other ESOs to provide technical assistance. This model made them more attractive to philanthropic and financial foundations, generating over $2.5 million in unrestricted grants in two years and driving loan volume through ESO referrals.
- SSBCI Leveraging: Andre explained how his organization leverages the Small Business Credit Initiative (SSBCI). The 50% guarantee on loans elevates their credit profile with investors, securing significant funding. This also enables loan participation programs with banks and provides access to state-set-aside TA dollars for SSBCI lenders. Philanthropy can play a similar role by providing loan loss reserves.
- Earned Revenue Models: Weaving Impact uses a "train the trainer" model, building value for partners by providing replicable technology that lowers the cost of services for their clients.
- Social Enterprises (e.g., Cocina Rx): Anne highlighted Cocina Rx, Chicago's first Latino-led culinary school. Beyond traditional culinary education, they developed a program called "Food as Medicine" where they partner with local hospitals to provide medically tailored meals and nutrition education. Selling these meals and programs generates both impact and revenue. This is an excellent example of a multi-sectoral approach, tapping into the large healthcare market.
- Collective Giving Circles: When one of Prospera's funders unexpectedly pulled $500,000, Anne's team employed a "ground-level approach" by organizing Latino Giving Circles. These community-led philanthropic groups gather individuals who commit to giving a certain amount, deciding together where to invest the capital. This model has proven highly catalytic, with one foundation collecting $1.3 billion through such circles as of 2023.
- Community CD Funds: Kristin Leutz mentioned an example in Massachusetts where a local bank developed a product similar to a community CD fund. This allows non-accredited investors to invest up to $5,000 in local ventures, providing patient capital for local businesses through CDFIs or banks.
- CDFIs Network for Systemic Change: Andre is spearheading the Arizona CDFI Network, uniting CDFIs to advocate for policy, drive funding, and strengthen the state's financial ecosystem. This initiative secured initial funding from a foundation keen on system change and aims to develop a statewide investment playbook and eventually a state-level CDFI fund.
How to Get Started with Alternative Funding
Embarking on new funding pathways requires intentionality and relationship-building:
- Build Intentional Partnerships: Adam emphasized that their funding model requires BSOs to work in partnerships by design, fostering a cohesive ecosystem rather than competition. Allow partners to organically determine who they need based on expertise and programs.
- Right-size Your Funding Strategy: Andre's organization reduced its dependency on federal dollars by focusing on its core strengths (capital deployment) and partnering with others for technical assistance. This specialized approach made them more attractive to funders.
- Saturate the Market with Your Presence: Get out into the community and have conversations with everyone. Andre, new to Arizona when he joined Growth Partners Arizona, spent his first year simply getting to know individuals, understanding their needs, and assessing alignment on values and principles before discussing investments.
- Understand Funder Strategic Priorities: Engage in deep conversations with local funders to understand what they are looking to invest in over the next year and their strategic priorities.
- Position Your Organization as a Solution: Once you understand community needs and funder priorities, position your organization, especially through a collaborative lens, as the perfect solution to bring entities together.
- Build Value for Your Partners: Consider how you can provide value, such as Weaving Impact's train-the-trainer model and replicable technology that lowers service costs for their partners.
- Identify Mission-Aligned Partners: Look for partners who share your values, won't harm your brand, and can help you reach the next level. This often means finding partners who complement your strengths, as Growth Partners Arizona found with HUUB for a statewide technology solution.
- Embrace a Model of Accompaniment: Anne spoke about Weaving Impact's "model of accompaniment," where they build solutions with their partners on a journey, rather than just "plopping a program down". This requires both organizations to have the willingness and capacity to build and grow together.
How to Keep It for Long-Term Engagement
Securing funding is just the first step; maintaining relationships is crucial:
- Practice "Stewardship": This involves continuous "care and feeding" of relationships. Dedicate time to meet with and talk to current, potential, and even former partners, building "relationship capital".
- Leverage Data and Technology: To demonstrate impact and support careful planning, you need robust data. Tools that help aggregate and share data can be invaluable for both your organization and your community partners. Large foundations may even invest in technology if it aligns with their strategic priorities.
- Build Trust as a Thought Partner: Adam emphasized that his collaborative acts as a "thought partner" rather than just a "money person," fostering trust and guiding their grant recipients. This involves persistence and clearly articulating how working together moves the needle.
- Demonstrate Continuous Value: Ensure that convenings, partnerships, and collaborations provide tangible value to all participants, whether through learning, collaboration, or providing a space to connect.
- Align with Systemic Change: Funders are often interested in investing in broader system change, like the Arizona CDFI Network's efforts to strengthen the entire financial ecosystem.
- Scenario Planning: Proactively engage in financial modeling and scenario planning for the next 1-2 years. This helps you understand potential challenges and opportunities, aligning your financial planning with strategic goals.
What to Do When Things Go South (Funding Runs Dry)
It's a scary scenario, but it happens. Here are some examples from our panelists on how to navigate rough patches:
- Diversify and Mobilize Ground-Level Support: When Prospera lost significant committed funding, they didn't just look for other large funders. They took a "ground-level approach" by organizing community-led giving circles. This grassroots mobilization provided crucial new capital and turned a loss into a positive learning experience.
- Leverage Collaborative Networks: If you're part of a funder collaborative, losing one funder might mean other partners can provide introductions to new funding sources, demonstrating the resilience of a networked approach.
- Help Your Partners Find Alternatives: Funders can proactively help their grantees identify alternative revenue sources, encouraging them to develop social enterprises or fee-for-service models, especially when philanthropy might be less reliable.
- "Think Like a Business": Even if your organization is a nonprofit, consider the strategies businesses employ, developing new product lines, merging, or engaging in robust financial scenario planning.
- Strategic Relationship Building: Andre's organization pivoted from federal to private/foundation investments by intensely focusing on relationships, taking time for "lunch, coffee, all of those things" to truly understand funder needs before pitching.
- Don't Rush Your Approach: It's tempting to panic, but rushing into new funding conversations with a desperate pitch can be detrimental. Instead, prioritize learning and building genuine relationships. When you understand needs and position yourself as a solution, "the dollars will flow" naturally.
Final Thoughts: Turning Ideas into Actions
The path to sustainable, inclusive economic growth requires creativity, collaboration, and a willingness to explore new approaches. Our panelists offered a range of real-world strategies — from alternative lending models to community-driven giving — that are already transforming how local ecosystems access and deploy capital.
As you consider what’s possible in your own community, take these ideas not as one-size-fits-all solutions, but as inspiration points. The most effective funding strategies are rooted in deep relationships, shared values, and an understanding of local needs.
Innovative funding is not just about dollars — it’s about designing systems that reflect and respond to the people they serve.
Ready to explore what this could look like in your community? From managing alternative funding programs to tracking impact, coordinating partners, and engaging entrepreneurs, we support cities and economic development teams with the tools needed to make collaboration work at scale. Connect with HUUB team today!
Listen to this episode on Spotify
Looking for tailored solutions?
Book a call with our team!
DOWNLOADABLE CONTENT
Worksheet to Unlocking Creative Funding Ideas
Looking for new ways to fund small business growth in your community? Download our free worksheet packed with insights and planning prompts. Explore innovative funding sources, map out your next steps, and keep your projects moving forward!
SMALL BUSINESS SUPPORT MADE SIMPLE
Subscribe
Get updates on new features and best practices in economic development
©2025 HUUB. Made with ❤ in USA. | Privacy