In a Nutshell
What: An interview with Merchants Bank Vice President of Community & Business Banking Partnerships Marquisha Bridgeman about the value of establishing a referral relationship with CDFIs to better serve nonprofit clients.
Location: Indianapolis, IN
While banks and community development financial institutions (CDFIs) often offer overlapping services in the same markets, this creates natural, mutually beneficial opportunities for partnership rather than a competitive dynamic. Marquisha Bridgeman, vice president of community and business banking partnerships at Merchants Bank, can attest to this, with almost 20 years working across multiple community-focused roles.
Whether it’s for a new child care center, a successful human services nonprofit looking to build a permanent facility that will anchor additional investments in the neighborhood, or some other project that benefits the community, traditional lenders frequently encounter projects they want to approve, but the math simply doesn’t work. That’s often where CDFIs like IFF can step in to bridge the gap by offering mission-aligned lending, strategic guidance, and hands-on support designed specifically to address the needs of nonprofits.
Merchants Bank’s collaboration with IFF to support VOICES, a youth-serving nonprofit in Indianapolis, exemplifies this model. Aligned missions, coordinated support, and a $500,000 loan from IFF approved in December will enable VOICES to purchase a former public school building the nonprofit currently leases and operates as a community resource center on the east side of Indianapolis alongside two partner organizations.
The following discussion with Bridgeman explores the benefits of referral relationships between banks and CDFIs, the strategic fit of Merchants Bank’s partnership with IFF, and the role of trust in building a more responsive community development ecosystem.
IFF: Can you share more about your experiences working in collaboration with banks, nonprofits, CDFIs, and other economic development organizations?
Bridgeman: My relationships with nonprofits and the community began more than 20 years ago. Early in my career, my role focused on developing nonprofit relationships and supporting community development by leveraging available funding. Over time, my work has included communications, expanding education opportunities, and eventually community engagement within a banking environment—specifically, building strong relationships between financial institutions and community organizations in the heart of Indianapolis. No matter the role, community has always been central to my work.
Eventually, Merchants Bank asked me to consider a position they were developing on the commercial banking team. Technically, I work in commercial and business banking, supporting businesses and nonprofits with deposit and loan needs. But a primary part of my role is focused on small businesses, making sure we understand and support their unique needs.
Rather than creating something new, we wanted to better understand where gaps existed for small businesses and whether we could help fill those gaps or support solutions that already existed. I’ve spent a lot of time meeting with organizations already doing small business support work—CDCs, CDFIs, and other banks—to better understand the ecosystem. At first, some of the services felt duplicative. But as I built relationships and learned more, I began to see where support existed for new entrepreneurs, established businesses, and those looking to scale. That understanding has allowed us to partner more effectively across the ecosystem and support businesses at every stage.
IFF: What drew you to VOICES, and what made you see their facility acquisition as an important project?
Bridgeman: I was introduced to VOICES through a mutual connection. From the first meeting, they clearly articulated their mission, and you could feel the passion of the entire staff. They were deeply committed to improving outcomes for young people and addressing generational challenges in the community.
“Banks have appraisal and due diligence requirements that take time and money—resources the organization didn’t have the luxury to spend. Referring VOICES to IFF for financing will allow the nonprofit to hold onto more cash while acquiring their facility and move forward on stronger footing.”
Over time, even while working with other financial institutions, they continued to include us, inviting us to events, following up, and keeping us updated on their progress. That consistent communication helped us stay engaged and identify ways to support their work beyond banking alone.
Nonprofits benefit greatly from building relationships with different partners for different reasons. That network becomes especially valuable when timing matters and decisions need to move quickly. VOICES didn’t operate in a vacuum. They consistently worked alongside community partners who understood their mission and could speak on their behalf. That makes it easier for funders and institutions to feel confident supporting them. When organizations invest in relationships over time, it creates credibility and momentum when strategic opportunities arise.
IFF: What do you look for when considering an opportunity to partner with a CDFI like IFF for a project like VOICES’?
Bridgeman: Often, it’s when we see that an organization doesn’t have as much cash on hand to meet traditional loan requirements. Even when they do have the cash, partnering with a CDFI can allow them to preserve operating funds for other critical needs.
In VOICES’ case, Merchants Bank may have been able to move the deal forward without referring it to IFF, but it would have required them to put down more cash upfront. Additionally, banks have appraisal and due diligence requirements that take time and money—resources the organization didn’t have the luxury to spend. Referring VOICES to IFF for financing will allow the nonprofit to hold onto more cash while acquiring their facility and move forward on stronger footing.
Many nonprofits faced funding challenges last year that they hadn’t experienced before. When a bank recognizes there may be a better path, even if a deal with the bank is technically possible, it helps build trust and reinforces that banks can genuinely have nonprofits’ best interests at heart.
IFF: Can you talk more about the benefit of being able to refer a nonprofit like VOICES to IFF when it’s clear that the bank’s products aren’t the best fit for their needs?
Bridgeman: The benefit is trust. Banks should be conduits to the best possible outcomes, and that path isn’t always the same.
“Partnering with CDFIs allows us to do what’s truly best for the organization in front of us when our financial products aren’t the right fit for their needs.”
When we offer creative, strategic solutions, even if that means directing an organization elsewhere, it builds trust and elevates the relationship beyond transactions. It encourages leaders to come to us early, share challenges and opportunities, and see us as long-term partners. If we don’t honor those relationships, we risk losing future opportunities. Partnering with CDFIs allows us to do what’s truly best for the organization in front of us when our financial products aren’t the right fit for their needs.
VOICES reached out to us when they had the opportunity to purchase the building they’d been leasing. We were excited. This had been a long-term goal for them. Their financials were strong but, given recent funding shifts, we wanted to ensure the lending structure positioned them for long-term success. Reducing costs and shortening the closing timeline led us to reach out to IFF.
We knew IFF’s mission-driven approach and strategic support would allow VOICES to move forward in a stronger position. After reviewing the financials, it was clear this aligned perfectly with IFF’s mission and the organization’s needs.
IFF: In the case of VOICES, what might their property acquisition look like without a partnership with IFF?
Bridgeman: The very specific, mission-driven work that IFF does, and does consistently, would have been difficult for us to replicate, even if we ultimately could have provided the loan. VOICES would have easily managed the loan review process, but they would have lacked someone that could offer strategies that address broader challenges that nonprofits face. The journey would have been far more difficult without the comprehensive guidance at each step. Many nonprofits don’t fit neatly into traditional lending structures, and when conversations with banks slow down or become complicated, it creates anxiety for nonprofit leaders. Having a partner like IFF who reassures them that their mission matters and who understands their specific type of organization makes the transition much smoother when we make that handoff.