$5 million investment helps connect small
businesses with financing and education
As Laura Mitchell of Luxury Cake Company in Chicago prepared to
expand her small business, she faced a less-than-sweet dilemma:
Business was growing, but taking on larger clients required a
substantial financial investment in a professional grade oven and
refrigerator.
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Laura Mitchell, owner of Luxury Cake
Company, needed a $7,500 loan to help her small business grow.
(Photo: Business Wire)
Mitchell secured a $7,500 small business loan from Fifth Third
Bank and a community partner, enabling her to expand her service
offerings and build a showroom for cake tastings and
demonstrations.
“You can do the hard work, but at a certain point, you need some
help. It doesn’t take a million dollars to make your dreams a
reality,” she said. “For businesses like mine, a small loan is all
it takes to maximize growth.”
But a success story like Mitchell’s isn’t always the result of a
loan application. In fact, U.S. Small Business Administration data
shows that only a fraction of small business loans went to
minority- (26 percent) or women-owned businesses (18 percent) in
2017.
This Small Business Week, Fifth Third is taking a stand against
this lending gap with a $5 million investment to the nonprofit
Community Reinvestment Fund, USA (CRF). The partnership expands
access to capital for small businesses in major markets across the
U.S., including Cincinnati, Chicago, Cleveland, Detroit,
Indianapolis, Tampa, Orlando and Charlotte. CRF works with
community partners to improve access to capital for small
businesses in underserved communities as well as those owned by
women and minorities.
“Entrepreneurs like Laura Mitchell help our cities thrive,” said
Kala Gibson, head of business banking for Fifth Third. “We have a
long way to go to close the lending gap entirely, but this
investment will help a more diverse range of small businesses reach
their full potential, add jobs and give back to the communities
that support them.”
In addition to expanding the responsible lending options
available to small business owners, the $5 million investment will
help small business owners make informed lending decisions using
tools like CRF’s new platform, Connect2Capital, a “one-stop shop”
for comparing a broad range of responsible and transparent loan
options.
Many of the community partners will also:
- Educate current and prospective
entrepreneurs on critical financial management skills, including
cash flow analysis, credit management, loan applications and
more.
- Connect business owners with local
opportunities for continued education, including hands-on
workshops, classes and webinars on topics ranging from credit
repair, financial management and building a better business
plan.
According to Gibson, the multimillion-dollar investment is part
of the regional bank’s strategic plan to increase access to
traditional funding, an effort that has made notable strides in
recent years. The Bank has pledged $10 billion to small business
loans through 2020 as part of its Community Commitment. The Bank
has earned recognition from Greenwich Associates as one of the
“best brands” in small business banking and from the State Small
Business Credit Initiative as the largest lender by dollar
amount.
“Whether we’re working with a one-person startup or a
corporation that brings in more than $20 million a year, one of the
most rewarding parts of our job is helping a business find the
funding to reach its full potential,” Gibson said. “We are invested
in them. When they grow, we grow, and we celebrate together.”
For business owners like Laura Mitchell, it’s that level of
individual investment that helps dreams grow into an even sweeter
reality.
About Fifth Third
Fifth Third Bancorp is a diversified financial services company
headquartered in Cincinnati, Ohio. As of March 31, 2018, the
Company had $142 billion in assets and operated 1,153 full-service
Banking Centers and 2,459 ATMs with Fifth Third branding in Ohio,
Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West
Virginia, Georgia and North Carolina. In total, Fifth Third
provides its customers with access to more than 54,000 fee-free
ATMs across the United States. Fifth Third operates four main
businesses: Commercial Banking, Branch Banking, Consumer Lending
and Wealth & Asset Management. Fifth Third is among the largest
money managers in the Midwest and, as of March 31, 2018, had $363
billion in assets under care, of which it managed $37 billion for
individuals, corporations and not-for-profit organizations through
its Trust and Registered Investment Advisory businesses. Investor
information and press releases can be viewed at www.53.com. Fifth
Third’s common stock is traded on the Nasdaq® Global Select Market
under the symbol “FITB.” Fifth Third Bank was established in 1858.
Member FDIC.
About Community Reinvestment Fund, USA (CRF)
Founded in 1988, Community Reinvestment Fund, USA (CRF) is a
national non-profit organization with a mission to empower people
to improve their lives and strengthen their communities through
innovative financial solutions. A leading Community Development
Financial Institution (CDFI), CRF supports mission-driven
organizations through the development of products and services
aimed at increasing the flow of capital to historically
underinvested communities across the country. CRF has injected more
than $2.4 billion to help stimulate job creation and economic
development, provide affordable housing, and support community
facilities. For more information, visit www.crfusa.com
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Fifth Third BancorpLaura Trujillo, 513-534-NEWS
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