Wells Fargo Invests $6.6 Million in Lending Capital and Grants for Black Businesses
Style Magazine Newswire | 1/9/2018, 9:41 a.m.
Source: Good Black News
by Jeffrey McKinney via blackenterprise.com
Wells Fargo, the nation’s third-largest bank, is awarding $6.6 million in lending capital and grants to 12 Community Development Financial Institutions (CDFIs) nationally that black-owned small businesses and others can use to flourish and create jobs.
The funding comes from the Wells Fargo Works for Small Business: Diverse Community Capital (DCC) program. The program includes targeting businesses owned by blacks, Asians, Hispanics, and Native Americans. Along with boosting lending to diverse small businesses, the CDD funds are used by CDIFs to support initiatives that increase access to capital and resources. That support can include providing technical assistance, marketing, and other help such as coaching and education that the businesses perhaps need to grow.
The CDFIs are private, nonprofit financial institutions focused on providing responsible and affordable lending to underserved populations and communities.
“The combination of debt, grant, and social capital makes the DCC program unique,” Connie Smith, Wells Fargo’s Diverse Community Capital program manager, said in a statement. “The social capital component allows CDFIs to collaborate, innovate, and better serve diverse small businesses—and when our small businesses succeed, so do the communities they serve.”
Wells Fargo claims by financing community businesses—including small businesses, microenterprises, nonprofit organizations, commercial real estate and affordable housing—CDFIs spark job growth and retention in U.S. communities. Wells Fargo has committed $75 million to CDFIs since January 2016. Four rounds of awards have been done in 2016 and 2017, exceeding $55 million to date.
The Round Four DCC recipients include:
- Accion East – New York, $250,000
- AmPac Tri-State CDC – Grand Terrace, Calif., $200,000
- Cooperative Business Assistance Corporation (CBAC) – Camden, N.J., $650,000
- Economic and Community Development Institute (ECDI) – Columbus, Ohio, $200,000
- Initiative Foundation – St. Cloud, Minn., $800,000
- LiftFund – San Antonio, Texas, $1,350,000
- Pacific Coast Regional Small Business Development Corp. – Los Angeles, $300,000
- San Diego Region Small Business CDC – San Diego, $250,000
- South Carolina Community Loan Fund – Charleston, S.C., $900,000
- Southern Bancorp Community Partners – Little Rock, Ark., $750,000
- UCEDC – Cranford, N.J., $750,000
- Ventures – Seattle, $200,000
Funds from round four were distributed to many black-owned businesses. Round five just closed, but round six will open May 1, 2018. Grants typically range from $50,000 to $500,000, while loans are generally between $100,000 to several million, according to the bank.
For more details about the Wells Fargo Diverse Community Capital program, visit https://ofn.org/wells-fargo-dcc