Bridging the Gap: How to Finance Community-Scale Infrastructure
Last week, the Milken Institute hosted The Finance Forum in Washington, DC. Our COO and Co-Founder Amanda Li shared her insights on the session, “10,000 Communities Initiative: The Building Blocks of Community Infrastructure.” The panel discussed the challenges and opportunities in this space, focusing on the critical need for community-scale infrastructure investment.
Moderated by Rachel Halfaker, Director, 10,000 Communities Initiative at the Milken Institute, Amanda was joined by featured speakers including Andreas Karelas, Founder & Executive Director at RE-volv, Jane Brady Knight, Executive Director at Craft Philanthropy, and Tony Pipa, Senior Fellow, Center for Sustainable Development at the Brookings Institution.
Key Takeaways
- Strong investment demand: Rural communities are eager for infrastructure projects but face constraints in capacity and access to capital.
- Diverse funding sources: A combination of public, private, and philanthropic capital is crucial for successful project implementation.
- Bridging the infrastructure gap: Organizations like RE-volv and Craft Philanthropy are creating innovative financing models and partnerships to address the unique needs of small-scale projects.
- Standardization and visibility: Platforms like Banyan Infrastructure are working to standardize processes and reporting and improve transparency to attract larger investors.
- Patience and trust: Long-term commitment and building trust with local communities are essential for sustainable impact.
The panel concluded with a call to action for capital providers to:
- Be patient and understand the unique needs of rural communities. These communities have unique characteristics and challenges. Investors need to take the time to understand them and be flexible in their approach.
- Lean in and collaborate to create a robust market for community-scale infrastructure. Creating a strong market requires collaboration. Capital providers need to be willing to share information and work together to develop solutions.
- Clearly define products and terms to facilitate investment. Clear and concise information about investment products and terms makes it easier for communities to access funding.
- Embrace clean energy as part of their investment portfolio. Clean energy presents a significant opportunity for economic growth and environmental sustainability in rural communities.
By working together, we can support all communities and drive economic growth across the United States.
Want to learn more? Watch the session on demand here.