Wells Fargo 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, Illinois, the program will expand to other markets across the U.S. in the coming year.
The Open for Business Growth program builds on the success of Wells Fargo’s $420 million Open for Business Fund, which collaborated with community organizations during the pandemic to benefit roughly 336,000 small businesses and enable them to keep or maintain 461,000 jobs nationwide.
Allies for Community Business: Allies for Community Business, a nonprofit that offers capital, coaching, and connections for entrepreneurs, is the first Open for Business Growth recipient. And 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.
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.
KEY QUOTES:
“We’re focused on reaching the ‘missing middle’ of the small business community with this program. 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.”
Darlene Goins, head of Philanthropy and Community Impact at Wells Fargo
“Many small businesses need more than a microloan but are not yet large enough for traditional financing. 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.”
Brad McConnell, CEO of Allies for Community Business
