Grant will help solve wealth, racial
disparities among first-time truck owners
BALTIMORE, May 5, 2023
/PRNewswire/ -- Truist Foundation today announced a
$1.5 million commitment to Accion
Opportunity Fund, a certified nonprofit community development
financial institution (CDFI), which offers responsible capital,
coaching and networks to small businesses owned by people of color,
women and/or low-to- moderate income entrepreneurs. With the grant
funds, Accion Opportunity Fund will pilot a Down Payment Assistance
Fund to help more Black and Latine individuals as well as women
become first-time truck owners and entrepreneurs in Maryland and Georgia, part of its overall strategy to close
gender and racial wealth gaps by investing in and supporting
overlooked, underestimated entrepreneurs nationwide.
Maryland Lieutenant Governor Aruna
Miller, Baltimore Mayor
Brandon M. Scott, Truist Financial
Chairman and CEO Bill Rogers, and
Accion Opportunity Fund CEO Luz
Urrutia gathered at Coppin State University—a historically
Black university in Baltimore,
Md.—to formally announce the grant and explore the impact of this
work in Baltimore and beyond.
"Truist Foundation recognizes the need for more tangible
resources for women and people of color entrepreneurs," said
Lynette Bell, president of Truist
Foundation. "Truck drivers quite literally drive our economy, and
we are honored to partner with Accion Opportunity Fund to ensure
that more first-time truck owners have a path towards affordable
capital. This new Down Payment Assistance Program will help create
quality job opportunities in our communities and propel our local
economies forward."
Entrepreneurs of color and women have historically
experienced larger barriers to obtaining finance to start or
expand their businesses. Through the Down Payment Assistance Fund,
more people will be able to participate in the trucking industry
with support to fund their truck down payment costs, sustain their
businesses and establish a path to economic mobility.
"We are grateful for this new relationship with Truist
Foundation, which will provide critical support for women and
people of color in the trucking industry," said Urrutia. "Access to
capital and resources should not be a barrier for first-time truck
owners looking to drive wealth creation for themselves and our
broader economy. The Down Payment Assistance Program will provide
new opportunities for economic mobility for these entrepreneurs who
are too often shut out of the traditional financial system."
In the past year, Accion Opportunity Fund disbursed 2,422 loans
totaling $113.2 million in capital to
small businesses, primarily to entrepreneurs of color, women,
and/or low- to moderate-income entrepreneurs. Since launching
trucking lending in 2010, Accion Opportunity Fund has invested over
$360 million in trucking through more
than 6,300 loans, including loans to more than 5,700 first-time
truck buyers.
"As a transportation engineer, I know the strong opportunities
for entrepreneurship and greater financial capital that exist in
the transportation industry. We must ensure historically
disadvantaged communities are included in these opportunities for
growth," said Lt. Governor Miller. "Today, Accion Opportunity Fund
and Truist Foundation are taking meaningful steps to level the
playing field and the Moore-Miller administration is grateful for
their partnership as we work to create pathways to work, wages and
wealth for all Marylanders across all sectors."
Over half of Baltimore's
privately held businesses are owned by Black, Indigenous and people
of color individuals. And while people of color are leading the
nation's small business boom, they are more likely to be denied
credit or approved for smaller amounts than white business owners.
Small business ownership, which includes self-employed truckers, is
a proven path to building household wealth and financial
security. On average, business-owning households earn more than
twice the wealth of their wage-earning peers—and this impact
is even more pronounced for business owners of color. Accion
Opportunity Fund aims to help create equal opportunities and grow
this revenue.
"The collaboration between Accion Opportunity Fund and Truist
Foundation aligns with our commitment to financially empowering our
minority and women entrepreneurs in the trucking industry," said
Mayor Scott. "A few months ago, we announced a $10,000 hiring and retention bonus to eligible
existing and new City employees who require a Commercial Drivers
License (CDL) to work. Now, through the Accion Opportunity Fund, we
are equitably providing access to affordable capital that allows
truck drivers to establish wealth for themselves and scale their
business. It is the gift that keeps on giving."
Truist Foundation's support in Baltimore goes beyond its work with Accion
Opportunity Fund. Previously, the Foundation also granted
$600,000 to Baltimore Community
Lending, a CDFI nonprofit that provides loan capital to small
business owners by offering funding and training to help
entrepreneurs break through systemic barriers.
About Truist Foundation
Truist Foundation is committed
to Truist Financial Corporation's (NYSE: TFC) purpose to inspire
and build better lives and communities. Established in 2020, the
foundation makes strategic investments in nonprofit organizations
to help ensure the communities it serves have more opportunities
for a better quality of life. Truist Foundation's grants and
activities focus on building career pathways to economic mobility
and strengthening small businesses. Learn more at
Truist.com/Foundation.
About Accion Opportunity Fund
Accion Opportunity Fund works to create an inclusive, healthy
financial system that supports the nation's small business owners
by connecting entrepreneurs to affordable capital, educational
resources, coaching, and networks. Through innovative partnerships
and outreach strategies, we reach entrepreneurs of color,
low-income entrepreneurs, and women, who often lack access to the
financial services they need to build and grow their businesses.
Accion Opportunity Fund Community Development is the lending arm of
Accion Opportunity Fund, California Finance Lender license
#6050609. Visit the organization at aofund.org to learn more
about their business growth resources and funding
opportunities.
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SOURCE Truist Foundation