The PACE Business team at the 2024 MBE Connect Summit. The summit connected Minority Business Enterprises with $400 billion in contract opportunities. PACE co-hosted the event and shared their business counseling, procurement, and lending services with attendees.
Los Angeles CDFI Supports Economic Mobility for Local Small Business Owners
Allie Judge, Associate at Opportunity Finance Network
OFN member PACE celebrates 50 years supporting community development through small business lending and other financial services.
Read time: 7 minutes
This Asian American and Pacific Islander (AAPI) Heritage Month, we honor the contributions of OFN member Pacific Asian Consortium in Employment (PACE), a community-rooted organization in Los Angeles that has worked for 50 years to expand economic opportunity and mobility for all — beginning with its founding in 1975 to support AAPI refugee communities with job training and employment services.
Today, PACE has served over 1.4 million people across employment, education, business, energy, and housing — empowering individuals and families to build lasting economic stability. Through PACE’s small business lending arm, PACE Finance Corporation (PFC) is a certified CDFI and SBA Community Advantage Lender.
PFC packaged, placed, or funded over $13.7 million in loans and provided financial education and credit counseling services to over 2,000 small business owners and entrepreneurs in program year 2023-2024 — fueling small businesses that anchor local economies.
Carol Wu, VP of Lending at PFC, reflects on how PACE’s evolution has stayed true to one core belief: economic opportunity should be accessible to all, especially those historically underserved by traditional financial systems.
How would you describe PACE to someone new to community development?
PACE is a community development organization that helps underinvested communities access the tools they need to build a better future. We provide comprehensive programs that include workforce development, small business support, affordable housing, energy and environmental services, and early childhood education. Together, these programs bridge gaps in opportunity, helping the communities we serve gain stability, build wealth, and achieve lasting economic mobility.
How do you describe PACE to members of the community you serve?
PACE has long served as a safeguard against poverty and inequality. For 50 years, PACE has responded to the evolving needs of our low-income communities in Los Angeles. From supporting AAPI refugees in the 1970s to launching our Business division in response to the 1992 L.A. riots, our mission has always been about one thing: to uplift communities in need. In times of uncertainty, PACE remains ready to support our community members in weathering any emerging challenge.
What is one unique aspect about PACE?
PACE embraces a holistic and multi-faceted approach to tackling poverty and community development, ensuring that our communities are supported with employment, business development, environment, and early education services. The success of our programs has always been driven by our diverse staff and leadership, which reflect the communities that we serve. Our staff share similar backgrounds with clients, and speak over 40 languages, enabling in-language services.
What’s your “why” for working in the community development space, and how did you end up at PACE?
In 1975, a group of Asian activists came together to provide needed employment training services for AAPI refugees, and Pacific Asian Consortium in Employment (PACE) was born. As our employment services grew, we recognized that economic empowerment could not be achieved through employment services alone.
PACE expanded its services to meet community needs and began serving all low-income and disadvantaged communities throughout Los Angeles County. By tackling poverty in this multi-faceted manner, PACE levels the playing field for communities that have been historically denied equal opportunities.
What’s the biggest opportunity to create greater impact that PACE is considering?
The biggest opportunity for our organization to create a more significant impact lies in leveraging the trust we have built within the community for the past 50 years and intensifying our outreach efforts for the services and programs we offer. Many AAPI and other diverse small business owners face challenges and barriers to obtaining financing for business expansion, such as limited English proficiency, low creditworthiness, and a lack of financial education and training.
PACE Finance Corporation (PFC)—PACE’s lending arm and a certified CDFI—addresses these issues by providing in-language technical assistance, one-on-one counseling and mentoring, and a variety of other services to help our clients achieve economic self-sufficiency.
What is the biggest challenge for PACE in 2025?
In 2025, the biggest challenge is navigating the evolving political landscape and funding cuts at key agencies like the Small Business Administration (SBA), Los Angeles County Department of Economic Opportunity (DEO), and the Employment & Workforce Development Department (EWDD). These agencies have been crucial in supporting PACE and many small businesses that rely on their resources and programs.
Despite these threats to funding and staffing, PACE sees this as an opportunity to adapt and innovate. We are committed to leveraging our strengths to develop creative solutions, enhance community outreach, expand access to alternative funding sources, and strengthen partnerships. By embracing these opportunities, we aim to sustain our operations and make a lasting impact on entrepreneurs and small businesses in Los Angeles County.
What advice do you have for people who are interested in learning about community development and the CDFI Industry?
For those interested in community development and the CDFI industry, it’s important to understand the strong connection between the two. Community development focuses on building equitable, thriving communities, and CDFIs play a critical role in advancing these efforts by providing accessible capital to people and places historically underserved by traditional financial institutions. Knowing this relationship offers valuable insight to better understand how financial tools and community-based strategies work together to drive inclusive economic growth.
What is a challenge facing the CDFI industry right now, and how can the industry rise to meet that challenge?
One challenge facing non-depository CDFIs is securing consistent and sufficient lending capital. Because these institutions don’t hold deposits like traditional banks, they often rely on external sources such as banks, government programs, and in-kind contributions, which can be unpredictable and come with rising costs. As the cost of lending capital increases, it becomes more difficult for CDFIs to offer affordable credit to borrowers.
To address this challenge, the industry could benefit from more flexible, long-term capital investments that help stabilize the flow of affordable lending resources. Additionally, organizations like OFN can play a key role by bringing stakeholders together to advocate for sustained funding streams, including program-related investments, that strengthen the CDFI field and ensure long-term access to affordable capital.
How do you describe OFN to people who do not know us?
OFN is a national network of CDFIs that helps community lenders grow their impact and expand financial resources in underinvested communities. OFN supports CDFIs through training, funding, and advocacy, and helps bring the industry together to share ideas and push for policies that support fair access to capital.
Learn more about PACE’s five core programs. Stay up to date by signing up for PACE’s newsletter or following them on social media.
Become an OFN Member
OFN members represent loan funds, banks, venture capital funds, and credit unions working in all 50 states, D.C., Guam, and Puerto Rico. Join the movement that transforms communities.
Become an OFN member and connect with the resources, partnerships, and advocacy that empower CDFIs to go deeper, move money, and change lives.
Save the Date
Join us from October 20-23 in Washington, D.C. for the 41st annual OFN Conference!
Stay Connected
Subscribe to receive regular updates straight to your inbox and check out our blog for the latest coverage from OFN and the CDFI industry.
Follow us on social media.
More From OFN
Save the Dates for 2025 OFN Events and Training!
OFN’s 2025 events and training will bring together mission-driven lenders, partners, and other advocates across the country to learn, network,… Read More
Congress Passes Budget Resolution, Moving Tax Policy Discussion Forward
With the first step of the reconciliation process complete, OFN continues to advocate for adding community development priorities to the… Read More
Register for OFN’s 2025 Small Business Finance Forum in Austin, TX
More than 500 mission-driven small business lenders and partners will gather this June 11-13 for OFN’s 12th annual SBFF. Small… Read More