PHILADELPHIA (KYW Newsradio) — A coalition of about 30 banks and other financial institutions have committed to investing at least $100 million into helping minority businesses over the next few years, as part of a recovery plan by the Chamber of Commerce of Greater Philadephia.
Dozens of local banks and financial institutions have joined forces for this initiative in a one-of-a-kind partnership.
$13.5 million in funding has already been raised for the Philadelphia GRIT (Growth, Resiliency, Independence, Tenacity) Fund, created by the Greater Philadelphia Financial Services Leadership Coalition.
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Organizer Varsovia Fernandez, the executive director of the Pennsylvania CDFI Network, said that money from phase one of the four-year program will go directly to community development agencies around Philadelphia.
"This will allow them to lend more money to Black and brown businesses," said Fernandez.
"A portion of the money is going to go for operational needs so that they can provide better services, have the staffing that they need, the infrastructure that they need, whether it is technology, software, and also provide multicultural training to the staff."
Fernandez said this is a unique partnership because of the 30 financial institutions like Bank of America and the Urban Affairs Coalition. They have formed a collective to help Black and brown businesses.
"They have individually had that relationship and contribute," said Fernandez. "But they have never come together to say, 'Now we need to raise a meaningful amount of dollars to help the Philadelphia region, Black and brown small businesses grow.'"
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"With the shutdown of a lot of various businesses, as in people going into quarantine, it tends to be the small, midsize businesses, particularly those that are owned by people of color, Asian owners, etc, that really, really withstood really the worst pain throughout the pandemic," said Jim Dever, president of Bank of America and chair of GFSLC.
"This is an effort to really try to bridge some of that gap, and to make sure that the resources are there, for those that truly are most in need."
Owners who want to cash in on those millions should start by reaching out to their local community development agency, also known as a CDFI.
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"They really are the ones in the community that have that trust currently," said Debbie O’Brien from Bank of America.
"We need to bridge that as well and make sure that they have that kind of access and support. And that's really what the CDFIs are great at, too."
O'Brien said CDFIs are the key to getting Black and brown businesses the financial support and other resources they have historically been deprived of.
"They provide a support structure around the business owner," said O'Brien.
"The professional advisory component that the chamber will run will be an opportunity for corporate volunteers, both from financial institutions other corporations, to help in the areas of legal and accounting, and marketing, and strategy, and risk to really circle these businesses with the support that we know they need."
