With the national economy tightening, many small businesses are seeing their profits dip while their costs continue to climb.
In the Twin Cities, many small businesses have faced additional challenges. The dramatic slowdowns related to Operation Metro Surge took a toll on many minority-owned businesses, like cafes, groceries, and retail shops. During the height of ICE presence, they were crippled as customers and employees stayed home.
The current economic squeeze underscores the importance of small business owners having a relationship with a lender.
At Old National Bank, the relatively new Empowerment Small Business Loan Program is making capital available. It is aimed specifically at helping small business owners in underserved communities.
“We work on a one-on-one basis with these entrepreneurs to help them gain access to capital. We have a team of small business bankers ready to have those conversations,” said James Lyght, senior vice president of Community Lending Marketing Executive who leads the empowerment loan program.
Three years ago, Old National Bank established the Empowerment Small Business Loan Program specifically to serve minority and women-owned small businesses. They may not otherwise qualify for credit under traditional underwriting guidelines.
“Since 2023, the amount we have lended to minority and women entrepreneurs in underserved communities is now pushing $70 million,” Lyght said. “We provide them with working capital that can help them to purchase buildings, finance equipment, overcome a bump in the road, whatever they need.”
Bankers work with small businesses also provide them with technical support and guide them through putting together profit and loss statements and balance sheets.
Lyght explained that the empowerment program takes what he calls a more “holistic view” of qualifying small businesses for loans.
“We use a more inclusive credit approach that places less weight on the credit score and more emphasis on the business viability. We can be more flexible on debt service,” he said. “We look at the history of the business, its projections. We listen to their story so we can help them grow and, in our climate right now, survive.”
Lyght concedes that not every woman or minority entrepreneur will initially qualify for the Old National Bank loan empowerment program. But he said that bankers will often partner with them to strengthen their businesses so they can participate.
“It might be a ‘no’ today, but we say, lets work on it for the future. We look for business owners who can show potential and momentum,” he said. “Everyone deserves a chance and a second chance. Everyone deserves the chance to create generational wealth.”
For more information about the Old National Bank Empowerment Loan Program go here.
