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Banks (Finance)

Banks Leverage CRA to Build Clean Communities and the Manufacturing Jobs of the Future

Strategic Insights

— 1 min read

The 22 Fund, a Los Angeles-based impact-focused venture capital firm, has announced significant investments from BMO Bank N.A. and City National Bank, totaling $8 million, to support its mission of leveraging the Community Reinvestment Act (CRA) to drive economic growth and development in underserved communities. The investments align with the banks' CRA initiatives, which aim to create good jobs, close funding gaps, and empower communities to thrive.

Key Takeaways:

  • The 22 Fund has secured multi-million-dollar equity investments from BMO Bank N.A. ($5 million) and City National Bank ($3 million) to support its impact-focused venture capital model.
  • The fund's mission aligns with BMO's CRA strategy to create good jobs, close funding gaps, and empower communities to thrive, as stated by Carl Jenkins, Managing Director and Group Head, Community Capital Solutions at BMO.
  • City National's CRA commitment focuses on creating long-term economic opportunities, and the bank is excited to back The 22 Fund's venture model, which delivers measurable community outcomes, according to Adey Tesfaye, Senior Vice President - Head of CRA at City National Bank.
  • The 22 Fund is pioneering a new pathway by channeling CRA-driven capital into venture investments that address climate change, create high-quality jobs, foster innovation, and promote inclusive economic development in underserved areas.
  • The fund intentionally generates both financial returns and tangible socioeconomic impact without compromise, with each of its five current portfolio companies meeting inclusive criteria.
  • The 22 Fund uniquely qualifies under CRA guidelines by directly supporting the creation of clean quality jobs in the future and improvement in low- and moderate-income areas.
  • The fund's model targets inclusive climate tech manufacturing, delivering impactful, scalable outcomes that align with the CRA's original intent.

Statistics:

  • $8 million in total CRA-driven investments from BMO Bank N.A. ($5 million) and City National Bank ($3 million)
  • 5 current portfolio companies meeting inclusive criteria
  • $42 million in total fund-capital sourced through CRA initiatives
  • 13 million customers served by BMO Financial Group
  • $1.4 trillion in total assets held by BMO Financial Group as of April 30, 2025
  • 200 years of serving customers for BMO Financial Group
  • 3 years since The 22 welcomed its LPs, including , , and as leaders in impact and climate investing

Sources:

  • "The 22 Fund"
  • "BMO Financial Group"
  • "City National Bank"

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