Black Money: A Conversation with Jay Diallo from First Community Capital

Justin Minott from the African American Alliance of CDFI CEOs interviews Jay Diallo, President and CEO of First Community Capital, focusing on his/her journey, mission, and the impact of her/his work. Here is a brief recap of this powerful conversation:

Justin: What inspired your journey to become President and CEO of First Community Capital?

Jay: My journey began in Ghana, where I faced humble beginnings and was raised by my aunt and grandmother. I learned the importance of hard work early on, starting my days at 3 am and selling food in the marketplace. This entrepreneurial spirit stayed with me as I grew and sought better opportunities abroad, which initially landing in Costa Rica, but the goal was always America. While in Costa Rica, I chose education over immediate work, learned Spanish, and earned a scholarship to Westmont College in Santa Barbara, California. There I majored in political science with a minor in economics and business and landed my first job at the Bank of Tucson. 

Down the line, I sat on the board of directors of the CDFI in Tucson, which is one of the very first CDFI in the country. It was established in 1992 or 1994 right before the CDFI fund was created and the CEO extended the opportunity for me to be the Executive Director. I accepted happily, but I always knew I wanted to do more. I believed in the importance of helping small, minority businesses lift themselves out of poverty.So July 1, 2019, in the middle of the COVID, I left my job, took the leap of faith and I started First Community Capital CDFI.

Justin:  I love it. What did that actually look like to stand this thing up? Give us the practical steps you took to establish First Community Capital.

Jay: When I left my job, the first thing I did was take my 401k out. I used my own money to start lending to people. $5000 a year, $2,500 a year. I did that because my philosophy has always been, if I go to my funders, I wanna tell them that I am doing microloans to small businesses. I began with small loans and gradually built credibility to achieve CDFI certification quickly, because I knew it would attract funding and support. As far as the certification process goes, I completed the application myself, which was painful. I followed their requirements. And I provided the responses to their questions and then kept my fingers crossed. 6 months later, I was approved! After receiving certification, I reached out to my network, which opened doors to partnerships with banks and organizations that believed in our mission.

Justin: Wow. What a journey. Now tell us what First Community Capital is up to right now. Give us a little bit of the scope of your work right now, and then we'll talk about where it's going in the future.

Jay: So to start out, we made our first loan in late 2019 and have steadily increased our lending: 6 loans in 2020, 25 in 2021, 34 in 2022, and 75 in 2023. This year, we aim to reach 150 loans in, all while managing limited resources. Now, we primarily provide microloans up to $25,000, with some exceptions for established businesses. We're also looking to increase our loan capacity to $50,000 as we pursue SBA micro-lender status. Alongside loans, we offer business development services, credit education, and financial literacy.

Moving forward, I hope to expand our impact by creating a minority depository institution (MDI) to further support underserved communities. My vision is to empower small businesses and ensure they have the resources they need to thrive, helping them become "bankable" and contributing to the broader economy.

Justin: How are you doing micro loans sustainably?

Jay: Operating micro loans is challenging. Financial stability for micro loans is an oxymoron because there's no amount of interest rate you're gonna charge to cover your operating costs. Ultimately, we maintain a conservative budget, and I often take on multiple roles to keep costs down. On top of that, our underwriting process is efficient, focusing on character over just credit scores.

Justin: Incredible. You're from Ghana, Costa Rica, now landed in California with a big Hispanic population. Talk about what some of what you're doing at First Community Capital in the Hispanic community.

Jay: We’re unique. Even though we are a Black led organization, most of our staff speaks Spanish, myself included after living in Costa Rica. That being said, we actively serve the Hispanic population in the Inland Empire, and we focus on creating an entrepreneurship ecosystem, especially in areas with high Hispanic demographics. Recent funding has allowed us to increase our support for immigrant loans.

Justin: Now you're also doing some incredible work with formerly justice involved people. So talk about the impact that you're having in that space. 

Jay: When I was doing the other CDFI in Tuscon, I learned that when we help and provide opportunity for foreign and incarcerated people, the rate of recidivism reduces significantly. And then re-entering back into the community, becoming a member of our society that creates economic impact goes up. Right? So we focus on entrepreneurship as a pathway for reintegration, helping individuals start businesses rather than just seeking traditional employment, which often comes with barriers. By offering loans for equipment and working capital, we empower them to build sustainable livelihoods.

Justin: What does black liberation mean to you?

Jay: Black liberation means having the opportunity to exercise one’s potential. We don’t ask for handouts, just the chance to succeed. That's what I asked for. I'm not asking you for anything so that I can exercise my God given potential that I was created for. 

Justin: Thank you so much for being here. Any final thoughts for our audience?

Jay: Follow your passion! Even if you find yourself in a job you dislike, give it your all. What you invest in your current role can pave the way for your future success.

Justin: Keep changing the world. And, Jay, you've been wonderful. Thanks again. We will see you again next time.

Thank you for reading! You can watch the full interview HERE. Be sure to connect with Jay Diallo and follow him on LinkedIn to stay connected to the impact.