Grants to local organizations aim to expand access to capital for entrepreneurs "in the middle" of small business ownership
Wells Fargo & Company (WFC) today announced Open for Business Growth, a new $20 million philanthropic program where nonprofits enable small business owners ready to scale operations or grow revenue. Launching first in Chicago, the program will expand to other markets across the U.S. in the coming year.
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(Photo: Wells Fargo)
"We're focused on reaching the ‘missing middle' of the small business community with this program," said Darlene Goins, head of Philanthropy and Community Impact at Wells Fargo. "Small businesses on the brink of expansion are poised to make an even greater impact in creating jobs, increasing services, and strengthening the economy. But, these small business owners in the middle often need creative financing options to take that next leap. Our grant funding allows nonprofits to develop products and services that embrace growth-stage small businesses."
The Open for Business Growth program builds on the success of Wells Fargo's $420 million Open for Business Fund, which collborated with community organizations during the pandemic to benefit roughly 336,000 small businesses and enable them to keep or maintain 461,000 jobs nationwide.*
Expanding small business opportunity in Chicago
Allies for Community Business, a nonprofit that provides capital, coaching, and connections for entrepreneurs, is the first Open for Business Growth recipient. It will focus on growing the construction industry around Chicago and helping businesses that have fluctuating revenue flow, like restaurants and retail.
With its $2.5 million Open for Business Growth grant, Allies for Community Business is piloting a new revenue-based financing model and expanding access to its partnership with HIRE360, a specialized construction loan program that offers advisory services and mentoring.
"Many small businesses need more than a microloan but are not yet large enough for traditional financing," said Brad McConnell, CEO of Allies for Community Business. "We are offering creative capital that does not dilute the entrepreneur's ownership. We're expanding access to flexible financing for which repayment shrinks or grows depending on the highly variable revenues that many small business owners generate month to month. Wells Fargo's grant will spark growth for Allies for Community Business, the small businesses we serve, and the community."
Allies for Community Business estimates its clients supported by this grant will generate as many as 260 local jobs as they execute larger contracts and opportunities that this grant will help finance.
About Wells Fargo
Wells Fargo & Company (NYSE:WFC) is a leading financial services company that has approximately $1.9 trillion in assets. We provide a diversified set of banking, investment and mortgage products and services, as well as consumer and commercial finance, through our four reportable operating segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth & Investment Management. Wells Fargo ranked No. 34 on Fortune's 2024 rankings of America's largest corporations. News, insights, and perspectives from Wells Fargo are also available at Wells Fargo Stories.
Additional information may be found at www.wellsfargo.com
LinkedIn: https://www.linkedin.com/company/wellsfargo
*Jobs figures cited reflect self-reported data from Wells Fargo Open for Business Fund grantees for jobs created or retained during 2020 – 2023.
News Release Category: WF-PESG
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Kim Erlichson
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