Founders of Shorebank Corp. Inspired a National CDFI Movement
WASHINGTON, D.C. – Northern Initiatives board members Mary Houghton and Ron Gryzwinski received the CDFI industry’s highest honor at this year’s Opportunity Finance Network conference. The Ned Gramlich Lifetime Achievement Award for Responsible Finance was presented before more than 2,000 industry leaders, practitioners and partners at OFN’s annual conference.
Watch the acceptance speech
Houghton and Gryzwinski are cofounders, along with the late Jim Fletcher and Milton Davis, of ShoreBank Corp., the first Community Development bank and the model for today’s $250 billion CDFI industry. The four honorees, a small group of impact-minded investors, purchased South Shore National Bank, which was poised to be sold and relocated from the predominantly black South Shore to predominantly white downtown Chicago. The founders sought to rebuild South Shore by empowering the community and investing in its economic development, a radical idea in the days of redlining.
During ShoreBank’s 37 years of operations, its founders helped shape federal community development legislation. Its business model catalyzed the concepts of double-and-triple-bottom-line enterprises.
In 1992, ShoreBank and Northern Michigan University collaborated to launch the nonprofit that eventually become Northern Initiatives, which is now celebrating 30 years of supporting Michigan small businesses. The partnership was the first of its kind between a bank and a major university.
As part of the process to become a U.S. Treasury-certified CDFI in 2000, Northern Initiatives’ board restructured to include equal numbers of NMU and ShoreBank members, along with community leaders. Houghton and Gryzwinski have been on the board of Northern Initiatives ever since.
“No one better embodies the values of the opportunity finance industry than the four founders of ShoreBank,” said Donna Gambrell, president and CEO of Appalachian Community Capital and chair of the OFN Board of Directors. “So many of us in the industry are guided and inspired by the work of these brilliant and diverse trailblazers. On behalf of OFN, I am truly thrilled to recognize Ron, Mary, Jim, and Milton with this honor
As Northern Initiatives celebrates 30 years, it also is celebrating lending $100 million to Michigan small businesses. “Mary Houghton and Ron Gryzwinski have been stalwart supporters – and challengers – of our work at Northern Initiatives. We are so grateful for their leadership, wisdom, and wonderful senses of humor,” said Elissa Sangalli, President of Northern Initiatives.
