Accion Opportunity Fund partners with Silicon Valley Black Chamber of Commerce and African American Chamber of Commerce in San Francisco to provide PPP loans to black-owned small businesses in the Bay Area
SAN JOSE, California, January 28, 2021 / PRNewswire / – Accion Opportunity Fund, the country’s leading nonprofit community development finance institution (CDFI) for small businesses, is working quickly with partners in the Silicon Valley Black Chamber of Commerce and the African Chamber of Commerce -American San Francisco to support Bay Area Black-owned businesses with advice, grants, and financial support, including Paycheck Protection Program (P3) loans available now from the federal government. This comes as the nonprofit lender strives to fulfill its $ 1 billion commitment invest in marginalized businesses nationwide by 2023.1
During the first round of PPP loans, Accion Opportunity Fund created $ 1.5 million in loans for 115 small black-owned businesses, partnering with chambers to provide expert advice and guidance on the PPP loan application process to their members.
“Black Americans are dying from COVID-19 in twice the rate of closure of white-American and black-owned businesses upper rate during this pandemic. We will not accept this, “said Luz Urrutia, CEO of Accion Opportunity Fund. “By partnering with local darkrooms and African-Americans, we can create a more inclusive financial landscape. We want to make sure black entrepreneurs get through this pandemic, while also working to eradicate prejudice and mainstream greater equity and inclusion for entrepreneurs of color.
Stigma and inequality have persisted in our financial system for far too long. Before the pandemic, black-owned businesses were five times more likely to be denied a bank loan than white-owned businesses. It is not surprising that during the first cycle of PPP loans, white-owned businesses received more federal aid.
In the first round of PPP loans, Accion Opportunity Fund quickly became an SBA Approved Lender and worked quickly to create $ 15 million in loans to over 1,000 small businesses, many of which are micro and sole proprietorship. The average amount of its PPP loans was $ 15,000, one fifth the size of the a Vmedium size PPP ready in the second half of the first cycle of PPP loans. In June and July, Accion Opportunity Fund partnered with Chambers in Silicon Valley and San Francisco to deliver three weekly webinars guiding members through the PPP process, gaining trust and helping chamber members complete requests. . Its approval percentage for PPP loans submitted to the Small Business Administration is significantly higher than the national average, and 12% of small business PPP loans funded by the nonprofit lender have gone to black-owned businesses.
“Our members look to us for expert advice, resources and a network of connections. Accion Opportunity Fund is a trusted partner that has proven invaluable to black entrepreneurs in Silicon Valley during this crisis,” said Carl Davis Jr., President of the Black Chamber of Commerce of Silicon Valley.
“Trust is at the heart of this partnership. And from that trust comes collaboration and a team spirit to get the job done – no small feat during a global pandemic that disproportionately injures and kills the black community. and our black-owned businesses, ”said Dr. Matthew Ajiake, president of the African American Chamber of Commerce in San Francisco.
Provide working capital loans of $ 2,600 at $ 100,000 underserved businesses – including flexible underwriting criteria, less onerous documentation requirements than other lenders, multilingual customer service representatives available to answer questions 7 days a week, 12 hours a day – in a timely manner and client-centricity is the primary focus of Accion Opportunity Fund. Local chambers of commerce and community partners are essential to this effort.
Ethnic Chambers and other organizations serving minority small businesses interested in partnering with Accion Opportunity Fund to provide affordable loans to their members and clients can contact: Adriana eiriz, Vice President of Sales and Partnerships, [email protected].
About the Accion Opportunities Fund
In March 2020, Opportunity Fund and Accion, The US Network, joined forces to establish Accion Opportunities Fund, the first organization focused on a national microcredit strategy to meet the credit needs of small businesses – developing new products, establishing new partnerships, promoting research and financial education, and leveraging digital technologies to support lending focused on the mission.
About Opportunity Fund
Opportunity Fund, the nation’s leading nonprofit small business lender, believes small dollar loans help hard-working entrepreneurs make lasting changes in their own lives and build stronger communities by growing businesses and by creating jobs. Opportunity Fund’s donor and investor community creates an inclusive financial system that empowers women, immigrants and minority-owned small business owners. Our strategy combines microloans for small business owners with new market tax credit investments in high impact community infrastructure projects. Since 1994, Opportunity Fund has deployed more than $ 900 million and helped thousands of entrepreneurs invest in the future of their families. The organization is committed to providing $ 1.2 billion to small business owners across the country and by investing $ 174 million in community real estate projects by 2023.
1All loans issued by Opportunity Fund Community Development, CA Finance Lender License # 6050609.
SOURCE Accion Opportunity Fund