BETHESDA, Md., March 3, 2021 / PRNewswire / – A diverse group of community financial organizations today announced the Southern Opportunity and Resilience Fund (SOAR), which aims to raise $ 150 million to provide affordable capital and free business support to small businesses and nonprofits in 15 southern and southeastern states to help them navigate and rebuild the Covid-19 health and economic crisis.
The SOAR Fund was created by community creditors in the South to provide economic recovery loans to small businesses in their communities at a time when they face unprecedented health and economic challenges. The loans are designed to target the smallest companies and those that historically have no banks – the type of company that this coalition of creditors has served for decades. These companies often struggle to access capital from traditional sources, but are essential to providing jobs and supporting economic recovery in southern communities.
“The Covid-19 pandemic exacerbated an already uneven recovery from the Great Recession. 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 investment corporate and philanthropic in the region, “said George Ashton, managing director of Local Initiatives Support Corporation (LISC), which manages the Fund. “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 small business portal is scheduled to open in April and will offer flexible and affordable loans of up to $ 100,000 for small businesses and nonprofits with fewer than 50 full-time employees. The Fund replicates similar models that have been successful in New York and California working with and through Community Development Financial Institutions (CDFIs).
All interested small business and nonprofit owners can review program eligibility, product terms and indicate interest at www.TheSoarFund.org, which will notify business owners once the app portal is active. 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 the Jacksonville, FloridaChartrand family.
“By investing in the Southern Opportunity and Resilience Fund, we are enabling the recovery and economic stability of historically underserved companies and communities through a robust network of CDFI partners to provide targeted business support services,” he said. Theresa Bedeau, Impact on the community and investment in Capital One. “Capital One is proud to support SOAR as its entrepreneurs build their businesses and non-profit organizations, establish financial well-being and guarantee their future.”
“We are pleased to partner and invest in the Southern Opportunity and Resilience (SOAR) Fund with the aim of increasing access to capital and support for underprivileged community companies and non-profit organizations,” he said. Tahreem Kampton, Microsoft Corporate Treasurer. “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 struggled economically due to Covid-19. We are happy to support this collaborative effort. to help provide opportunities in historically underserved communities. “
Thirteen CDFIs will originate loans acquired by the Fund, including Access to Capital for Entrepreneurs (ACE), Action Opportunity Fund, Ascendus, BCL of Texas, Black Business Investment Fund, Communities Unlimited, LiftFund, NCIFund, NDC’s Community Investment Loan Fund, Pathway Lending, People Fund, Southern Bancorp Community Partners and TruFund Financial Services. As collaborators, these lenders have full reach across the region, served at the forefront of the economic crisis, and have decades of experience in providing high-level loans and advisory services to small businesses and nonprofits. The CDFIs will be supported by leading technical assistance and business support organizations, including Winrock International, local LISC offices and the national rural program, and Small Business Majority, which will assist with outreach, education and practical business advisory services. Calvert Impact Capital is organizing and LISC Fund Management is managing the Fund.
“TruFund is proud to be a member of the SOAR Fund Partnership”, said James H. Bason, President and CEO of TruFund Financial Services, a participating CDFI. “We are committed to rebuilding a stronger and more resilient small business ecosystem, particularly in communities that have suffered from a lack of access to accessible capital and whose vulnerabilities are now exacerbated by COVID-19 and the related economic impact.”
“Small businesses are not only essential to the structure of our communities – creating jobs, providing valuable services and boosting local economies – but they are also essential for the entrepreneurs who started them and the people they employ, in this case, historically needy people and adversely affected by the pandemic. It is imperative, then, that we help small businesses adapt, safely reopen and rebuild, “he said. Patricia McCall, Vice President, Corporate Affairs and Global Strategy, Winrock International. “SOAR offers potential business partners and donors an opportunity to join this important mission.”
“We encourage all small business and nonprofit owners who need support to visit the site, learn about the Fund and sign up so that you are pre-registered as soon as we launch the program,” he said. Patrick Davis, Vice President of Strategy for the Community Reinvestment Fund, USA (CRF).
When the Fund is opened, CRF’s Connect2Capital platform will allow applicants to apply online and be referred to a creditor in less than five minutes.
The SOAR Fund covers: Alabama, Arkansas, Delaware, Florida, Georgia, Louisiana, Maryland, Mississippi, North Caroline, Oklahoma, South Carolina, Tennessee, Texas, Virginia, West Virginia and the District of Colombia.
For more information, visit www.TheSoarFund.org.
About the SOAR Fund
The Southern Opportunity and Resilience Fund (SOAR) provides access to flexible and affordable capital and free business support services for small businesses and nonprofits through trusted community organizations. These organizations have decades of experience supporting small businesses with few historical resources, including those in rural and low-income communities owned by women and people of color.
SOAR is a collaborative partnership of local and national community financial organizations created to meet the needs of historically underprivileged communities as they navigate and rebuild themselves from the COVID-19 crisis. SOAR includes leaders from a variety of sectors, including local community creditors, national and state nonprofits, corporations, philanthropic donors and investors – all passionate about an equitable recovery across the region.
For press inquiries
Erin Musgrave
EMC Communications
(530) 864-7014
[email protected]
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SOURCE Calvert Impact Capital
