Starbucks has joined forces with the Opportunity Finance Network (OFN) to raise money for Community Development Financial Institutions (CFNI). This venture highlights yet another avenue for financing for some small businesses.
CDFIs can be banks, credit unions, venture capital firms, or lending institutions who actively provide financial products and services to businesses located in low-income markets. For this reason, a CDFI could be both an arm of a community organization or an arm of an financial institution.
CDFIs secure funds through fundraising initiatives but also through government grants including the Department of Treasury. During 2012, the Department of Treasury is supposed to award 123 million dollars to various CDFIs. Both the OFN and the Department of Treasury have searchable databases to find these institutions.
In Georgia in 2011, DOT money was awarded to Carver State Bank and Citizens Trust Bank as well as Community and Redevelopment Loan and Investment Fund, Inc., and Appalachian Community Enterprises. In the past the largest awards (more than 100,000,000 during one year) have gone to SunTrust Community Development Enterprises, LLC. Citizens Trust Bank has leant to various businesses including senior living institutions, environmental engineers, publications, churches, and real estate organizations.
In Georgia, the OFN has 4 main organizations that it works through to loan money to businesses and microenterprises.
- Access to Capital for Entrepreneurs is a Georgia based organization that has loans of up to $50,000 for existing and start-up business for purchase of equipment, inventory, improvements, start up and working capital. They have loaned more than $5 million dollars since 2000. They also have green loans and free webinars.
- NCB Capital Impact loans to charter schools and health care facilities nationwide.
- Self-Help & Affiliates lends through both its credit union and venture fund which allows depositors to participate in socially responsible investing. They only lend nationally to charter schools and commercial development projects.
- SJF Ventures lends to veteran entrepreneurs who have identified technology driven solutions to major industry pain points. In Georgia, they funded Ryla Inc. which provides call center services for large global companies and which has been ranked as one of Inc.com’s fastest growing companies.
If you are a business in need of money for growth or start up funding in Georgia, you should strongly consider these sources.
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