Lightship says it will raise $300 million bond to route capital to CDFIs serving Midwest small businesses

Brian Bracken, managing partner with LightshipFoundation/Capital, told a Columbus Metropolitan Club forum that Lightship is raising a $300,000,000 economic mobility bond to get money into community development financial institutions (CDFIs) and minority depository institutions (MDIs) that lend to neighborhood businesses.

"We're raising $300,000,000, of which they're committing to $250,000,000 of the 300,000,000," Bracken said, naming Fifth Third Bank as a major backer. He said the bond is structured as a financed instrument and that Lightship expects to close Oct. 1 so the capital can be available to CDFIs starting Nov. 1.

Panelists explained CDFIs are often "the first place where a small business can go for capital," and that the new bond aims to fund loans for non-venture businesses such as bakeries, car washes and other local firms that struggle to secure bank financing. Bracken said the program is listed at embi.co and that any eligible credit union or CDFI can apply for the funds.

The announcement matters because it targets a funding gap outside the classic venture-capital pipeline, using an institutional-bond structure to move a large block of funds into community lenders. Bracken said partner outreach will continue to be important to deploy capital efficiently to local institutions and that Lightship has been working with regional banks and partners to scale the program.

Next steps: Bracken said Lightship will continue partner sign-ups and outreach through the summer and expects the fund closing and initial capital distribution timetable to follow the October/November dates he provided.