Google Focusing on small business
Since the beginning of the COVID-19 pandemic, we’ve been actively performing on ways to support communities and little businesses within us and around the world. In March, we announced the $125 million Grow with Google Small Business Fund together thanks to offering support. Through a partnership with Opportunity Finance Network (OFN), the fund provides low-interest loans to community development financial institutions (CDFI), who successively provide loans to small businesses in underserved communities within the U.S. Google.org also made a $5 million grant to OFN to further support CDFIs as they grow their capital and build their capacity during this point of crisis.
Earlier today, as a part of our effort to support the Black community, our CEO Sundar Pichai announced that we are expanding the program by adding $45 million in loans to the fund and $5 million in Google.org grants to OFN, with a selected, specialize in Black communities. This brings Google’s total support for CDFIs and therefore the small businesses they serve to $170 million in loans and $10 million in Google.org grants.
Today we’re announcing the primary five CDFIs, which can receive a complete of $15.5 million in financing from OFN. they’re going to provide loans to small businesses to assist them to make rent, pay their employees and still serve their customers. This financing will enable OFN’s member CDFIs to enhance access to capital for a few of the foremost underserved small businesses: those owned by women and minorities. additionally, six CDFIs will each receive a $125,000 from OFN, made up of the grant funds provided by Google.org.
Here are the CDFIs which can receive the primary round of funding.
Grameen America ($5 million loans, $125,000 grant): With 23 branches across 15 cities, Grameen America focuses exclusively on providing loans to U.S. microenterprises owned by low-income women.
MoFi ($3 million loans): By providing financing and consulting, MoFi reaches small business owners across Montana, Idaho, and Wyoming.
Opportunity Fund ($5 million loans, $125,000 grant): Based in California, Opportunity Fund provides loans to small businesses throughout the U.S., that specialize in the minority-, women- and immigrant-owned businesses.
PeopleFund ($1.5 million loans, $125,000 grant): Operating across Texas, PeopleFund provides small-business loans, also as business assistance and education, to people with otherwise limited access to such resources.
Citizens Potawatomi Community Development Corporation (CPCDC) ($1 million loans, $125,000 grant): one among the most important Native-owned CDFIs within the nation, CPCDC provides financial education, access to capital, business development services and community development initiatives to the Citizen Potawatomi National Tribal Community and other underserved Native populations.
Pacific Community Ventures (PCV) ($125,000 grant): Based in California and supporting small businesses throughout the U.S., PCV’s integrated model provides diverse small businesses with affordable capital, free mentoring, impact evaluation, and research.
Washington Area Community Investment Fund (Wacif) ($125,000 grant): Wacif increases equity and economic opportunity in underserved communities by investing in low- and moderate-income entrepreneurs with attention on minority- and women-owned businesses in financially underserved communities east of the Anacostia River in Washington, D.C. and in Prince George’s County, Maryland.
Although most CDFIs aren’t household names, they play an important role for little businesses throughout the U.S., many of whom are overlooked by traditional lenders. consistent with OFN’s 2018 Member Survey, their over 300 member CDFIs serve 58 percent people of color, 85 percent people with low incomes, 26 percent people that sleep in rural areas, and 48 percent women.
Since announcing the Grow with Google Small Business Fund, we’ve worked hand-in-hand with OFN to make a holistic program that has low-interest loans, funding for cash grants, Ad Grants, and digital skills training through Grow with Google, our economic opportunity initiative. Over the subsequent year, Google and OFN will still work together to underwrite and fund loans to additional CDFIs, which can then lend to thousands of small businesses. Through this partnership and program, we hope we will do our part to form sure small businesses remain the guts of the U.S. economy.
source: Google blogs