Wells Fargo boosts lending for minority-owned small businesses
SAN FRANCISCO–A three-year program was launched November 2 to deliver $75 million in grants and lending capital to Community Development Financial Institutions (CDFIs) serving diverse-owned small businesses, Wells Fargo & Co announced.
The company kicked off the Wells Fargo Works for Small Business: Diverse Community Capital program by announcing grants and lending capital to three CDFIs: OBDC Small Busineses Finance in Oakland, California, Black Business Investment Fund Florida in Orlando, Florida, and Hope Enterprise Corporation in Jackson, Mississippi.
CDFIs play an important role in helping small businesses to get started and grow by providing reliable and affordable capital and technical assistance.
As part of the three-year Diverse Community Capital program, Wells Fargo will extend $50 million in lending capital and $25 million in grant capital to CDFIs across the country.
In addition to lending and grant capital, the program will also deliver activities to help CDFIs build their social capital such as mentorship programs, knowledge networks, consulting and other collaborative efforts to further increase the capacity of CDFIs to lend to small businesses.
“With this program, we want to help CDFIs make an even bigger impact and help more small businesses start and succeed in our communities. Increasing access to capital is an important first step,” said Mike Rizer, executive vice president and head of Community Relations for Wells Fargo.
In a national survey commissioned by Wells Fargo and conducted by Gallup, diverse small business owners, especially African American small business owners, reported greater difficulties gaining access to capital than their peers.
Overall, the survey provided insight into the needs of small business owners in six segments – African American, Asian American, Hispanic, LGBT (Lesbian, Gay, Bisexual and Transgender), military veteran, and women.
Wells Fargo is collaborating with Opportunity Finance Network (OFN), a national network of CDFIs, on the creation and execution of the Diverse Community Capital program, including the delivery of social capital activities.
Capital program and how to apply can visit www.wellsfargo.com/cdfi.
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