Originally Published by Wells Fargo.
Wells Fargo & Company announced that 13 Community Development Financial Institutions (CDFIs) around the U.S. have been selected to receive $12.1 million in lending capital and grants under the Wells Fargo Works for Small Business: Diverse Community Capital (DCC) program. The recipients are private, nonprofit financial institutions that are dedicated to delivering responsible, affordable financial products to underserved populations and communities. Many of the small and micro businesses CDFIs serve may not be ready to access capital through conventional financing methods.
The Diverse Community Capital recipients are:
- BOC Capital Corp. – Brooklyn, N.Y.
- California Capital Financial Development Corporation Sacramento, Calif.
- Cooperative Development Fund of CDS for Shared Capital Cooperative – St. Paul, Minn.
- Cooperative Fund of New England serving New England
- Entrepreneur Fund Duluth, Minn.
- First American Capital Corporation West Allis, Wis.
- Hartford Community Loan Fund Hartford, Conn.
- Local Initiatives Support Corporation serving Los Angeles
- Mission Economic Development Agency (MEDA) San Francisco
- Mountain BizWorks Asheville, N.C.
- New Jersey Community Capital New Brunswick, N.J.
- PeopleFund Austin, Texas
- Rainier Valley Community Development Fund Seattle, Wash.
Diverse Community Capital funds will be used by the awardees to increase lending to diverse small business owners; help more diverse small business owners get the coaching and education resources they may need to grow their business; and improve, create or add resources, materials, products, or programs to better serve their target market.
Under the program, awardees also have the opportunity to participate in a social capital component, delivered by Opportunity Finance Network, a national network of CDFIs. Social capital opportunities include an online learning community, working groups on specific topics, consulting, peer learning and mentoring.
“Now in its third year, the DCC program’s impact on communities has been compelling,” said Connie Smith, Wells Fargo’s Diverse Community Capital program manager. “DCC awardees are increasing access to capital and development services for diverse small businesses in their local communities. These awards are inspiring collaboration and innovation in the CDFI industry every day.”
In fiscal year 2017, Diverse Community Capital awardees closed more than $284 million in loans to diverse small business clients. That represents a year-over-year increase of 23 percent for the first 18 awardees and a 63 percent increase for the next 26 awardees. Awardees closed nearly $103 million to black or African American entrepreneurs and more than $75 million to Hispanic or Latino entrepreneurs. In addition, 76 of all development services offered by DCC awardees were delivered to diverse small businesses. Most awardees reported at least one new or changed program or product designed to increase capital deployment to their clients.
“When local businesses succeed, so do the communities where we live and work,” said Mike Rizer, director of Community Relations at Wells Fargo. “By financing community businesses including small businesses, microenterprises, and nonprofit organizations CDFIs spark job growth and retention in communities across the U.S.”
Today’s announcement marks Diverse Community Capital’s fifth installment, or round, of awardees since 2015. Wells Fargo has committed an additional $100 million over the next three years to CDFIs serving diverse small businesses.