The investment in community lenders Accion
Chicago, Chicago Community Loan Fund, IFF and Local Initiatives
Support Corporation will finance more than 500 loans focused on
supporting Chicagoland entrepreneurs in underserved communities
Today, Starbucks Coffee Company announced its plans to invest
$10 million in four community lenders to drive economic opportunity
in Chicago. Starbucks investment is expected to help finance more
than 500 loans to foster growth in small business, support
community development projects and create more jobs in Chicago’s
underserved communities.
“We believe the pursuit of profit is not in conflict with the
pursuit of doing good,” said Starbucks ceo Kevin Johnson. “We know
that our business performs at its best when the communities we
serve are thriving. This sustained investment will provide
borrowers who often face barriers with access to capital and
mentorship to grow their business and create more jobs in
Chicago.”
“I applaud Starbucks for their commitment of corporate
citizenship and efforts to strengthen the communities in which they
serve,” said Mayor Lori E. Lightfoot. “Chicago’s own relationship
with Starbucks stretches over three decades, and we are incredibly
excited to continue that partnership well into the future, through
the 200 new jobs created in the beautiful new Reserve Roastery, as
well as across our neighborhoods that aligns to our new INVEST
South/West initiative, as we work together to create jobs, drive
investment, and expand access to opportunity for every one of our
city’s residents and families.”
The $10 million investment from Starbucks is planned to be
dispersed among Accion Chicago, Chicago Community Loan Fund (CCLF),
Local Initiative Support Corporation (LISC) and IFF – four
established Community Development Financial Institutions (CDFI)
that drive economic opportunity in the city’s neighborhoods,
especially within those with little access to the flexible,
affordable capital that entrepreneurs need. In addition to lending,
the organizations will provide borrowers with mentoring and
technical assistance to ensure the success of their projects.
“Our communities are filled with talent and entrepreneurial
spirit,” said Meghan Harte, executive director of LISC Chicago,
which has invested more than $970M in grants, loans and equity
throughout Chicago. “What they often lack is access to the right
kind of capital so that entrepreneurs can launch, build and grow.
With this investment, Starbucks is supporting a broadly shared
prosperity that will deliver clear benefits to residents, while
making our neighborhoods safer and stronger.”
With more than 150+ combined years of experience providing
capital and financial guidance, these CDFIs have the financial
expertise and local knowledge of Chicago to support meaningful,
sustainable impact. Areas of focus for loan disbursement will
include small businesses, nonprofit organizations and commercial
real estate ventures.
“OFN commends Starbucks for this investment in small business
and job creation for the Chicago communities that need it most,”
said Amir Kirkwood, chief lending and investment officer for
Opportunity Finance Network (OFN). “This welcome investment will be
managed by four CDFIs who are OFN members, all expert in providing
much-needed fair and responsible lending to small businesses to
create economic opportunity where it really counts.”
“The Chicago Community Loan Fund has been working strategically
to create more commercial retail in low-income neighborhoods for a
number of years,” stated Bob Tucker, Chief Operating Officer of
CCLF. “With this influx of capital from Starbucks, CCLF will
leverage additional funding to help address Chicago’s loss of
population in these communities and create not only access to
quality goods and services, but needed jobs for local
residents.”
This investment follows Starbucks Create Jobs for USA initiative
in partnership with the OFN in 2011. The program was dedicated to
creating and sustaining jobs in underserved communities throughout
the U.S. bolstered by a $5 million contribution from the Starbucks
Foundation. In three years, it raised more than $15 million in
donations, which participating CDFIs turned into $105 million in
financing for businesses to create or retain more than 5,000
jobs.
“Accion provides the capital, coaching and connections that
neighborhood entrepreneurs need to create jobs and wealth in
underserved communities. In Chicago, entrepreneurs of color and
women entrepreneurs need services that traditional financial
institutions often can’t provide,” said Brad McConnell, CEO of
Accion Chicago. “That’s what we do, and that’s why partnerships
with thoughtful organizations like Starbucks are so crucial.”
“IFF is thrilled that a partner like Starbucks is seeing the
communities of Chicago as wellsprings of opportunity,” said Matthew
Roth, President Core Business Solutions, IFF. “By making an
investment - one that expects to be repaid - Starbucks is betting
that our communities can transform their dreams and aspirations
into financial and social return.”
Bank of America will assist Starbucks in deploying the
investment to each of the four lenders. The CDFIs are expected to
start making loans to small business owners and community
organizations by early next year, although borrowers can apply for
a loan now. Chicagoland residents can learn more and apply for
loans by visiting the respective CDFI websites.
This news comes weeks ahead of the opening the Starbucks
Reserve® Roastery on Chicago’s Magnificent Mile.
- Accion Chicago: us.accion.org/chicago
- Chicago Community Loan Fund: cclfchicago.org
- Local Initiatives Support Corporation: lisc.org/chicago
About Starbucks
Since 1971, Starbucks Coffee Company has been committed to
ethically sourcing and roasting high-quality arabica coffee. Today,
with more than 30,000 stores around the globe, Starbucks is the
premier roaster and retailer of specialty coffee in the world.
Through our unwavering commitment to excellence and our guiding
principles, we bring the unique Starbucks Experience to life for
every customer through every cup. To share in the experience,
please visit us in our stores or online at
https://stories.starbucks.com/ and www.Starbucks.com.
About Accion Chicago
Accion helps neighborhood entrepreneurs grow by providing the
capital, coaching, and connections small business owners need to
create wealth and jobs throughout Illinois and Indiana. By
partnering with entrepreneurs, Accion offers the most
cost-effective way to invest in underserved communities. Accion
offers small business loans between $500 and $100,000 to qualified
borrowers and provides free coaching to any entrepreneur who wants
to grow their business. Learn more at us.accion.org/chicago.
About CCLF
Founded in 1991, Chicago Community Loan Fund is a federally
certified Community Development Financial Institution (CDFI)
providing flexible, affordable and responsible financing and
technical assistance for community stabilization and development
efforts and initiatives that benefit low- to moderate-income
neighborhoods, families and individuals throughout metropolitan
Chicago. To-date, CCLF has closed 486 loans totaling over $210
million in financing that has leveraged an additional $1.4 billion
in public and private sector capital for community projects. For
more information, please visit cclfchicago.org.
About LISC
With residents and partners, LISC forges resilient and inclusive
communities of opportunity across America – great places to live,
work, visit, do business and raise families. Since 1979, LISC has
invested $20 billion to build or rehab 400,500 affordable homes and
apartments and develop 66.8 million square feet of retail,
community and educational space.
About IFF
IFF is a mission-driven lender, real estate consultant, and
developer that helps communities thrive by creating opportunities
for low-income populations and individuals with disabilities. Since
1988, IFF has provided $907 million in flexible, affordable
financing to nonprofits serving a variety of sectors – affordable
housing, health care, education, community development, and more.
These investments have leveraged $2.9 billion and impacted
communities by creating more than 6,700 child care slots, 50,000
charter school seats, 369,000 new patient visits, 10,000 units of
affordable housing, 2,000 beds at supportive housing agencies, and
66,000 full- or part-time jobs.
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