We're excited to share news about a new partnership to provide business owners of color greater access to capital and business assistance. We are partnering with JPMorgan Chase and two fellow Community Development Financial Institutions (CDFI), Working Solutions and Pacific Community Ventures, on JPMorgan Chase's Entrepreneurs of Color Fund in San Francisco.
Investing in small businesses combats rising income inequality by creating jobs with living wages; and yet, small businesses struggle to access the capital and support they need to grow. The Entrepreneurs of Color Fund partners close that gap with a range of services designed to spur the growth, profitability, and sustainability of companies owned by people of color in San Francisco.
Through this partnership, we aim to create a continuum of capital and consulting to support small businesses run by entrepreneurs of color. We are very excited to be part of this innovative collaborative.
Read on below for details.
There are about 46,000 small businesses in San Francisco owned by people of color, making the city one of the largest for minority entrepreneurship. The fund is designed to increase economic opportunity by providing businesses with greater access to capital and advising, thus supporting their growth, local hiring, and the creation of a more equitable economy.
Access to non-predatory, affordable capital continues to be a challenge for small businesses in San Francisco, especially for entrepreneurs of color. White entrepreneurs receive over 50% of Small Business Administration loans in San Francisco, while Latinos receive less than 7% and African-Americans barely more than 1%. Entrepreneurs of color are systematically and chronically undercapitalized which hampers their growth as well as their ability to invest in the infrastructure and key hires necessary to build strong, stable businesses.
“Entrepreneurs of color are systematically and chronically undercapitalized which hampers their growth as well as their ability to invest in the infrastructure and key hires necessary to build strong, stable businesses.
Putting Capital to Work
The San Francisco Entrepreneurs of Color Fund provides local businesses with fair and affordable capital from $5,000 to $1,000,000, from start-up to scale-up. The Fund partners also offer financial advice, one-on-one mentoring, and practical business education.
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About The Entrepreneurs of Colors Fund Collaborative
Three non-profit community development financial institutions (CDFI) – Working Solutions, Pacific Community Ventures, ICA Fund Good Jobs – have come together with JPMorgan Chase to provide business owners greater access to capital and business assistance.
EOCF partners will increase access to capital and support that all businesses need. San Francisco businesses – from start-up and early-stage, to growth-stage – will have access to a range of services designed to spur the growth, profitability, and sustainability of companies owned by people of color in San Francisco. The loans and investments range from $5,000 and up. Businesses can use the capital to expand, finance equipment, address short-term cash flow needs and provide contractor lines of credit.