Essential Terms for Economic Justice & Social Impact Investing

Active Healing is an acknowledgment of how the existing economy is born out of slavery, colonization, and the extraction of people and the planet to heal and reimagine a new system that rights historical wrongs. As active participants in repairing the damage done and activating healing within and around Black business culture, we commit ourselves to acknowledge our history, speak the truth into power, gather our reparations, and be in right relationship with wealth holders who will commit to the same. 

Antiracism is the thinking, ways of being, and actions that flow from the awareness of and commitment to fight against racism. It is an active commitment to dismantling systems, practices, and beliefs that uphold racial inequality, exploitation, and oppression. Unlike "non-racism," which merely implies passivity, antiracism requires an intentional, ongoing practice of both unlearning and rebuilding. It recognizes that racism isn’t an individual problem but a deeply ingrained social system that intersects with patriarchy, classism, ableism, and other forms of oppression.

An Antiracist Investor is an investor who is aware of the ways that racism impacts investing and operates accordingly Antiracist investors identify with one or more of the following descriptors:

• Takes action to use different rules, procedures, and guidelines for investing in Black-founded companies;

• Uses their resources to create an economy that loves Black people;

• Dismantles racism—both personally and systemically—by eradicating racist beliefs, mindsets, actions, practices, and institutional policies and procedures that derive from, uphold, and/or perpetuate racism

• Decolonizes their lives, meaning they make an effort to interrupt power imbalances that maintain colonial, anti-Black, and anti-Indigenous practices and perspectives, instead opting for practices and perspectives that help to restore Afro-Indigenous values of freedom and self-determination;

• Acknowledges the intersections of race, gender, and class and understands these identities are connected to experiences with institutions and often collide in pervasive ways for marginalized people and communities, creating multiple layers of injustice and inequity;

• Is clear that race is a construct and that we are one race of human beings, interconnected by the same thread of life, while also understanding that the constructs of race and racism create tangible impacts and inequities;

• Models courage and vulnerability in acknowledging their own racism and speaking up against racism;

• Practices radical compassion for all people around the world;

• Believes returns on investments can and should be defined beyond financial returns alone, valuing social and environmental returns as equal to financial profit;

• Intentionally uses the wealth they steward to dismantle deep-seated, systemic barriers that Black founders face;

• Invests their resources in Black brilliance, imagination, and joy, and creates a more equitable and regenerative future for all; and/or

• Trusts Black founders to leverage investments in the ways they believe are best for their businesses

Believe-in-You Money is a revolutionary approach to capital investment that centers on trust, uplifting community, and the recognition of historical injustices faced by Black entrepreneurs. It embodies a set of guiding principles to create a transformative investment ecosystem that taps into abundance, redefines value, prioritizes collective well-being, repairs historical harms, and fosters transformational relationships. Believe-in-you Money can come in forms such as gifts, grants, loans, revenue shares, or convertible equity; and is all of the following:

• An alternative approach to business capital that intends to support the repair of racial injustice;

• Non-extractive, trust-based, patient, and flexible capital that is explicitly antiracist;

• Expands possibilities by addressing and interrupting inequities and long-held misconceptions, and encourages a mindset of abundance over scarcity (i.e., There’s enough for everyone when we cooperate v. We must compete for a limited and insufficient amount of resources.)

The Believe-in-You Money Movement is the deliberate and collective effort to create an economy that loves Black people.

Black Resilience refers to the ability to “weather the storm,” whether that storm is a natural disaster or man made. This term signifies the act of flourishing beyond any circumstance despite what systems of economic oppression have been put in place to hold our community down and back from achieving its full potential.

Bootstrapping refers to the American myth of rugged individualism and the iconic so-called self-made man, a false and hurtful narrative that purports that hard work and sacrifice are all it takes to be successful while ignoring historical and ongoing systemic barriers rooted in racism, sexism, classism, and the intersection of all three.

Capital refers to wealth in the form of money or other assets owned by a person or organization and available or contributed for a particular purpose, such as starting a company or investing

Capital Readiness is the state of preparedness of entrepreneurs to effectively access and utilize capital for business growth and community impact. It involves a solid understanding of financial fundamentals, a well-structured business plan that articulates a clear value proposition, and the ability to align business goals with funding opportunities. For entrepreneurs, capital readiness looks like developing a robust business plan and financial projections to increase sales, profitability, and social impact. In RUNWAY's approach, capital readiness goes beyond traditional indicators like business plans and financial projections. It considers a more holistic view, assessing qualities such as community impact and entrepreneurial commitment. RUNWAY looks at the whole person, including their lived experiences, values, and vision for their business, acknowledging that these factors are also critical to an entrepreneur's capacity to succeed.

Character-based lending is an equitable, holistic, and relational lending model that is based on an applicant’s reputation and the strengths of the business model; an alternative to credit score-based lending. It is a transformative approach to financing that centers on trust, relationship, and holistic assessment of borrowers, especially those historically marginalized by traditional financial systems. Unlike conventional lending, which often relies on rigid criteria like credit scores and collateral—systems that perpetuate racial and economic inequality—character-based lending evaluates the full humanity of the borrower. It values community reputation, work ethic, personal commitments, and lived experiences as key indicators of financial readiness.

Character-based underwriting is an approach to assessing creditworthiness and making lending decisions that prioritize the qualities, experiences, and potential of borrowers rather than relying solely on traditional financial metrics, such as credit scores or collateral. Character-based underwriting takes a trust and human-centered approach to lending, in which the entrepreneur–their needs, their integrity, strength, ability, and the impact they hope to have–is the most important thing.

Collective Action emphasizes the community over the ideas of a single leader; distributes responsibility more broadly across the members of the group, all of whom are responsible for outcomes; supports economic growth by pooling resources, defending against discrimination and racial bias, and ending burnout and stress. Collective Action can happen through formal or informal partnerships, and can create impact inside of cooperative businesses, strategic collaborations, joint venture partnerships, and many other organizational structures.

Community-Based Underwriting includes character-based lending and bringing together community members from the business space with lending professionals to determine whether a borrower’s loan application is within the financial institution’s policies relative to risk for extending credit.

Community Wealth is wealth building that expands beyond the business owner, but also includes employees, local community, and Mother Earth. Community wealth is the collective assets - social, intellectual, cultural, financial, etc.- that a community owns or controls that enable the community to care for one another and the natural environment. Some examples include worker-owned cooperatives, community-owned housing and locally-owned credit unions. (Source: Alkhemy)

Community Self-Determination is the process by which communities, particularly those that have been historically marginalized or oppressed, assert their power, right, and responsibility to define their own goals, make decisions, and govern themselves according to their unique cultural, social, and economic contexts. This concept emphasizes the importance of empowering community members to identify their needs, develop solutions, and take control of their resources and futures without external interference or imposition. Community self-determination fosters resilience, enhances social cohesion, and supports the development of strategies that promote collective well-being, ensuring that community members have a voice in shaping policies, programs, and practices that affect their lives. It is rooted in principles of justice, equity, and cultural respect, promoting an environment where communities can thrive based on their values and aspirations.

A Cooperative is a company owned by the people who use the company’s services, for example, cooperative organizations such as federations of workers, farmers, and landowners; mutual insurance companies; or banks and credit unions.

Culture Workers are spokespersons and collaborators of the world who use their voices and energy to shape the present and future toward more justice and equity. It is a term that goes beyond traditional notions of “artist” or “creative.” It describes individuals who use their talents and platforms to engage in the struggle for social and racial justice, actively shaping narratives, values, and collective memories that uplift and liberate marginalized communities. Culture workers understand that culture is a battleground for ideas, identities, and power, and they wield their creativity as a tool for resistance, healing, and transformation.

Equity involves trying to understand and give people what they need to enjoy full, healthy lives. While equality has to do with giving everyone the exact same resources, equity involves distributing resources based on the needs of the recipients and the historical oppression they have faced. Equity recognizes that everyone is not at the same starting line due to government and economic policies that actively discriminate against people of color. Policies rooted in equity - mean explicitly disrupting and redistributing power to marginalized communities through things like affirmative action, reparations, UBI, etc. And that these are the only way to truly level the playing field.

Equity also represents ownership stakes in a company. Instead of borrowing, entrepreneurs can raise money by selling ownership stakes in their company.

Exploitative Systems (vs. Regenerative Systems) refer to oppressive systems that devalue people and their labor; inspire violence and wealth-hoarding by a few through the extraction and exploitation of the many; and value the accumulation of money at the expense of people and the planet.

Financial Activism is a movement that seeks to leverage financial systems and resources as tools for social change, aiming to promote equity, justice, and accountability within the economic landscape. It encompasses a range of strategies and practices designed to challenge and transform the structures of capitalism that perpetuate inequality and exploitation, particularly for Black communities and other communities of color. It involves advocating for fair and equitable financial policies and practices, supporting businesses and initiatives that prioritize social and environmental impact, and mobilizing resources to dismantle systemic barriers that hinder economic justice.

Generational Wealth is often defined in financial terms, made up of assets that are passed down from one generation of a family to another; this can include cash, stocks and bonds, property, companies, land, or anything of financial value. However, in the context of reparative capital, generational wealth encompasses much more than financial resources. It represents a holistic framework of intergenerational support that includes access to resources, cultural capital, health and well-being, social networks, legacy, and emotional and spiritual health. The racial wealth gap has its roots in racist policies that trace back through the centuries and have blocked Black people, Indigenous people, and people of color from building various forms of wealth for generations.

Holistic Returns refer to the combined social, environmental, and financial impact of an investment, often called the “3P’s: people, planet, profits”

Impact Investing is a powerful investment strategy that harnesses capital to drive meaningful social and environmental change. It is rooted in the belief that our financial systems can be tools for liberation and equity, empowering communities to overcome systemic injustices. By intentionally directing resources toward businesses and initiatives that address pressing issues, impact investing challenges the status quo and prioritizes the well-being of marginalized communities. This approach not only seeks to create measurable positive outcomes but also cultivates a new financial landscape that values justice and collective progress, proving that profit and purpose can coexist in a transformative way.

Integrated Capital is defined as a holistic investment approach that combines various types of financial resources—such as grants, loans, equity, and technical assistance—and non-financial resources into a cohesive strategy designed to support social enterprises, nonprofits, and businesses in underserved communities. This framework recognizes that different stages of a business or project may require different forms of capital and that a diverse capital structure can enhance the resilience and sustainability of social impact initiatives. The concept of integrated capital emphasizes the importance of aligning financial resources with the specific needs and contexts of the organizations it supports, facilitating a more comprehensive response to complex social challenges. By integrating multiple forms of capital, investors can address not only the immediate financial needs of organizations but also their capacity-building requirements, enabling them to achieve greater social and environmental outcomes. Ultimately, integrated capital seeks to create a more interconnected and supportive ecosystem that fosters lasting positive change in communities.

Just Transition is a framework for a fair shift to an economy that is ecologically sustainable, equitable and just for all its members. We work to transition whole communities toward thriving economies that provide dignified, productive and ecologically sustainable livelihoods that are governed directly by workers and communities. A just transition is the process of getting from where we are to where we need to be by transforming the systems of economy and governance. A just transition requires moving from a globalized capitalist industrial economy to linked local living participatory economies that provide well-being for all. (Source: Movement Generation)

Movement Building is a strategic, intentional, and liberatory framework and series of actions designed to build and amplify the power of marginalized peoples and work towards a collective vision. We believe that we need a mass movement to transform our economy, and that movement will be multi-racial, multi-class, and intersectional. We believe that people do change, transformation is possible, and it is more important to be connected and interdependent than to be right.

New Economy is a term used to describe an economy that is increasingly green and socially responsible and one that is based on rethinking the nature of ownership and the growth paradigm that guides conventional policies. (Source: The Nation)

Non-extractive Capital refers to funding or financial resources that are provided in a manner that prioritizes the long-term sustainability and growth of individuals, businesses, or communities rather than extracting profits or resources in a predatory manner. Non-extractive capital seeks to create supportive ecosystems rather than perpetuate cycles of harm and exploitation, ultimately contributing to a more equitable economic landscape. Non-extractive Capital takes into consideration practices and processes that do not deplete or take more than they give from a person, business, community, or region. This form of capital can be characterized by: fair terms, community focus, support for development, equity over profit, transparency, and accountability.

Patient, Long-Term Capital refers to money invested that provides a considerable amount of time—sometimes up to 10 years—before seeing a financial return and forgoes a quick return to ensure better social and environmental impact. Funds that use patient, long-term repayment schedules also tend to work in closer partnership with the business owner, providing technical support and access to key relationships and resources. This idea has long been a part of Afro-Indigenous cultures.

People Power is the potential of everyday people to work together towards changing unjust conditions in their community. Their power comes from their ability to stand together as a group to confront an issue, to use democratic avenues to influence government policy or public opinion, and to sustain their actions over a period of time.

Power Building refers to the intentional and strategic process of cultivating and amplifying the collective power of marginalized communities to create meaningful, transformative change. This concept emphasizes collaboration, solidarity, and strategic action as essential components in advancing liberation and social justice. Power building involves several key elements including collective agency, shared leadership, relationship building, strategic mobilization, resource access and redistribution, cultural empowerment, and long-term visioning.

The Racial Wealth Gap refers to the extreme disparities in assets and financial capital along lines of race and ethnicity, resulting from the intentional creation and maintenance of anti- Black systems and structures that privilege white people and disadvantage others, especially Black people.

Using finance as an instrument designed to ensure communities can meet their needs and have full exercise of rights, from participatory budgeting to creating commons of capital. This practice fuels the movement towards a Regenerative Economy that values the dignity of work and humanity. It also prioritizes community governance and ownership of work and resources instead of oppressive systems that devalue people and their labor through violent hoarding by a few. Rather than limit people’s ability to fully shape democracy and decisions that impact our communities, a Regenerative Economy supports collective and inclusive participatory governance. (Source: Climate Justice Alliance)

Regenerative Economics is an approach to economics that brings nature’s laws and patterns of systemic health, self-organization, self-renewal, and regenerative vitality into socioeconomic systems; emphasizes money as a tool of circulation, and avoids maximizing financial profit through irresponsible extraction.

Regenerative Finance (ReFi) is an approach that uses money as a tool to solve systemic problems by changing the underlying circumstances that drive our current economic model; uses capital to create healthy and equitable social and environmental systems; focuses more on creating positive outcomes than reducing negative ones.

Regenerative Systems put life back into the system rather than simply extracting; create value for everyone in the ecosystem, helping to establish more holistic sustainability; can be a source of growth, creativity, and innovation and unlock the potential for greater community wealth and more widespread democratic participation; applies a life-giving strategy to the way Black founders are financed; rooted in Afro-Indigenous cultures.

Reparative Capital is capital that values all people and life; centers Afro-Indigenous values of restoration; and practices community governance, shared risk, and ownership.

It is a transformative approach to financing that seeks to address and rectify historical injustices and systemic inequities faced by marginalized communities, particularly Black entrepreneurs. It recognizes the longstanding impact of racism and economic exclusion and aims to repair the racial wealth gap through intentional investment strategies prioritizing equity, inclusivity, and community empowerment. Reparative capital is characterized by flexible, patient funding that not only supports the financial sustainability of Black-led businesses but also promotes holistic development within their communities. This approach emphasizes building trust and fostering relationships that go beyond transactional interactions, aiming for lasting partnerships that uplift and empower individuals and communities. By centering the voices and needs of those historically overlooked by traditional financial systems, reparative capital reimagines the landscape of investment, driving systemic change and contributing to a more equitable economy for all.

Coined by Nwamaka Agbo, Restorative Economics is an approach to economic systems that prioritizes healing, equity, and sustainability, particularly for vulnerable communities that have been historically harmed by systemic injustices and a polluting and extractive economy. This concept emphasizes the need to shift away from extractive economic practices that exploit people and the planet towards practices that nurture and restore community well-being and resilience. The methodology of Restorative Economics leverages community-owned and community-governed projects to bring residents together to create shared prosperity and self-determination and build collective political power. (Source: Restorative Economics)

Restorative Finance is an approach to wealth redistribution that empowers Black individuals, businesses, organizations, and communities to achieve financial equity (e.g., reparations); acknowledges the historic and current systems of oppression that have created and maintained financial inequity for Black people and other historically oppressed peoples.

Right Relationship refers to the Afro-Indigenous notion of ubuntu: I am because you are, and I move accordingly; to operate with one another in integrity and to honor our interconnectedness by moving from the understanding that our individual well-being is connected with the well-being of others and the Earth; requires truth-telling; understands each person’s inherent value, dignity, and worth; looks for opportunities for cooperation and holistic interactions; and values shared humanity as an integral part of life.

Being in Right Relationship is an agreement (between Runway and those who choose to operate in partnership with us) to acknowledge that our collective impact will be amplified by our interdependence. It is an agreement to (1) journey together towards co-creating new models of fundraising and social financing, (2) work together to fund black-led social enterprises from a place of faith, trust, and equity instead of a place of metrics-driven mistrust and bureaucracy-fueled by short term financing and investment terms that are not mutually beneficial, (3) commit to upholding a culture of self-care, healing and restoration within black-led organizations as a prerequisite to social progress.

Shared Risk is an approach to lending and investing that centers people and shares the burden of financial risk; especially supportive of Black companies that need capital to create productive assets that may not have collateral or other assets to launch their business

A Social Justice Enterprise is an enterprise that, beyond the social enterprise of “doing good,” actively has social justice embedded in the DNA of the values of the business. (Source: NPQ)

Trust-based Lending is a financial approach that emphasizes relationships, mutual respect, and a deep understanding of borrowers’ needs and circumstances over traditional credit assessment methods. This lending model is rooted in the belief that trust and transparency can lead to better outcomes for both lenders and borrowers, particularly in the context of marginalized communities. Key elements of trust-based lending include a relationship-centered approach, holistic assessment, flexible terms, support beyond capital, focus on community impact, and long-term vision.

Transformative Capital refers to funding or conscious capital that is designed to resource entrepreneurs and accelerate their success in building businesses that promote a more just, equitable, sustainable, and regenerative world for people and the planet. Transformative Capital is a powerful tool for advancing equity and justice by investing in community-led initiatives that seek to create a more just economic landscape, address systemic challenges, and promote sustainable long-term systems change.