A group of community financial organizations is raising $ 150 million in capital to help small businesses and nonprofits in 15 states, including South Carolina, struggling to navigate and recover from the COVID-19 crisis.
The Southern Opportunity and Resilience Fund will provide economic recovery loans designed to reach the smallest companies and organizations historically in need of banks that have struggled to access capital from traditional sources, according to a press release. The fund will cover Alabama, Arkansas, Delaware, Florida, Georgia, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, West Virginia and the District of Columbia.
“The COVID-19 pandemic has exacerbated an already uneven recovery from the Great Recession,” said George Ashton, managing director of Local Initiatives Support Corp., which manages the fund, in a press release. “Southern states experienced slower economic growth, less labor force participation and higher unemployment than the rest of the country, partially driven by the historical lack of corporate and philanthropic investment in the region. The SOAR Fund, with the support of major banks, foundations and corporations, will tackle these issues head-on, addressing structural barriers to economic opportunities, providing capital to small businesses and nonprofits in the south who need it now. ”
The application portal, scheduled to open in April, will offer flexible loans of up to $ 100,000 to small businesses and nonprofits with fewer than 50 full-time employees. The fund replicates similar models in New York and California, working with and through local Community Development Financial Institutions.
Interested small business owners and nonprofits can review program eligibility and product terms and indicate interest at www.TheSoarFund.org. Once the application portal is launched, qualified applicants will be compared to a participating creditor who will assist the business owner with the application and provide advisory support.
Initial catalytic loans and grants are being provided by Capital One, Microsoft, FB Heron Foundation, Fidelity Charitable with support from CapShift, Heifer Foundation, Mercy Investment Services, Woodforest National Bank, Ceniarth and Chartrand Family of Jacksonville, Florida. , according to the statement.
“We are pleased to partner and invest in the Southern Opportunity and Resilience Fund to increase access to capital and support for underprivileged community businesses and nonprofits,” said Tahreem Kampton, corporate treasurer for Microsoft. “Microsoft is committed to addressing racial injustice in our society, ecosystems and communities. Many small businesses across the country and in our southern and southeastern states have faced economic difficulties due to COVID-19. We are happy to support this collaborative effort to help provide opportunities in communities that have historically been underserved. “
Thirteen CDFIs will give rise to loans acquired by the fund, including Access to Capital for Entrepreneurs (ACE), Action Opportunity Fund, Ascendus, Texas BCL, Black Business Investment Fund, Unlimited Communities, LiftFund, NCIFund, Loan Fund Community Investment from NDC, Pathway Lending, People Fund, Southern Bancorp Community Partners and TruFund Financial Services. CDFIs will be supported by technical assistance and business support organizations, including Winrock International, local LISC offices and the national rural program, and Small Business Majority, which will assist in outreach, education and practical business advisory services. Calvert Impact Capital is organizing and LISC Fund Management is managing the fund.
“We encourage all small business and nonprofit owners who need support to visit the site, learn about the fund and apply so that you are pre-registered as soon as we launch the program,” said Patrick Davis, vice president strategy of the Community Reinvestment Fund, USA.
Applicants can apply online via the CRF Connect2Capital platform when the fund is launched.