U.S. Bank Access Fund to deploy $25 million in grants & capital to support more than 30,000 women of color-owned microbusines...
May 04 2021 - 10:15AM
Business Wire
The funds will go to African American
Alliance of CDFI CEOs, Grameen America and LISC
U.S. Bank today introduces the details of the $25 million U.S.
Bank Access Fund – a fund for women of color microbusiness owners,
which was first announced in February. The fund, a collaboration
between U.S. Bank Foundation and U.S. Bancorp Community Development
Corporation (USBCDC), will include long-term investments of grants
and capital funding to three partners: the African American
Alliance of Black CDFI CEOs (the Alliance), Grameen America and
Local Initiatives Support Corporation (LISC). The fund is part of
U.S. Bank Access Commitment, the company’s long-term approach to
help build wealth while redefining how the bank serves diverse
communities and provides more opportunities for diverse
employees.
The U.S. Bank Access Fund will support more than 30,000 women of
color-owned microbusiness owners over three years, prioritizing
Black women business owners. Microbusinesses, defined as having 10
or fewer employees, led by women of color are some of the fastest
growing in the country, yet face tremendous barriers. This fund
will help sustain and create new job opportunities and provide
access to capital, technical assistance and networking
opportunities. U.S. Bank leaders will also share expertise with
business owners through a series of customized seminars and
roundtables.
“The U.S. Bank Access Fund recognizes the economic power women
business owners represent to their communities and to the economy,”
said Greg Cunningham, chief diversity officer for U.S. Bank. “This
fund is different because it works to break down structural
barriers for women of color business owners, prioritizing Black
women, and focuses on the smallest, but most common type of
businesses – microbusinesses. Investing in these women and their
businesses will not only help build wealth but will have a
multiplier effect on the communities hardest hit by the
pandemic.”
The fund includes $20 million in USBCDC debt capital and $5
million in U.S. Bank Foundation grants and focuses on creating
systemic change by ensuring both CDFIs and microbusiness owners
have the support and capital they need to be successful. Over the
next three years, the Alliance, Grameen and LISC will work with
their local offices and nonprofit partners to build capacity within
the CDFI network, and to provide capital, technical assistance and
mentorship to local microbusinesses across U.S. Bank’s
footprint.
“The African American Alliance of CDFI CEOs is excited about its
partnership with U.S. Bank,” said Donna Gambrell, Alliance board
chair. “This multi-year capital commitment through US Bank’s Access
Fund is the largest investment in the Alliance since its formation
in 2018. We could not be more pleased about working with U.S.
Bancorp Community Development Corporation and U.S. Bank Foundation
to direct capital and business advisory services to women of
color-owned microbusiness owners, focusing particularly on Black
women business owners. The Alliance members participating in the
initiative look forward to supporting this segment of the
microenterprise sector to help close the racial wealth gap in the
United States.”
“This critical partnership with U.S. Bank invested through its
Access Fund will advance our shared vision to provide equitable
capital to women of color as they recover and rebuild their
communities in the wake of COVID-19,” said Andrea Jung, president
and CEO of Grameen America. “Through this new investment in
California, Chicago and Omaha, we will accelerate our proven model
across the United States to elevate more underserved minority
women, with the goal to support over 29,000 women-owned small
businesses over the next three years.”
"If we want to fuel a broadly shared prosperity, especially as
we emerge from COVID-19, then we have to expand access to flexible,
affordable capital for business owners that can’t otherwise get the
financing they need to grow,” said Lisa Glover, president and CEO
of LISC. “U.S. Bank is helping CDFIs like LISC bridge the capital
gaps that keep minority women from building their
businesses—creating new opportunities for them to expand their
incomes, create jobs and contribute to the vibrancy of the
communities where they live and work.”
U.S. Bank has been a strong supporter of CDFIs for decades,
recognizing the critical role these institutions play in bringing
investment and resources to underserved communities and those who
may not be eligible for traditional small business financing.
Through end of 2020, U.S. Bank has helped ensure that more than
$450 million in capital was available for CDFIs and their
customers.
“We recognize that serving microbusinesses is critical work,”
said Reba Dominski, chief social responsibility officer for U.S.
Bank. “That’s why this fund intentionally focuses not just on
capital, but on the capacity building CDFIs, focusing on Black led
CDFIs, need to succeed and expand. By leveraging the power of
philanthropy with business investments and employee volunteerism,
we can facilitate greater support for our communities across the
country.”
Microbusiness owners looking
for more information on the fund can contact: the Alliance
(aaacdfi.org/contact), Grameen America
(info@grameenamerica.org) and LISC
(lisc.org/covid-19/small-business-assistance/).
For more detail on U.S. Bank
Access Commitment, visit usbank.com/diversity.
About U.S. Bank
U.S. Bancorp, with nearly 70,000 employees and $553 billion in
assets as of March 31, 2021, is the parent company of U.S. Bank
National Association, the fifth-largest commercial bank in the
United States. The Minneapolis-based bank blends its relationship
teams, branches and ATM network with digital tools that allow
customers to bank when, where and how they prefer. U.S. Bank is
committed to serving its millions of retail, business, wealth
management, payment, commercial, corporate, and investment
customers across the country and around the world as a trusted and
responsible financial partner. This commitment continues to earn a
spot on the Ethisphere Institute’s World’s Most Ethical Companies
list and puts U.S. Bank in the top 5% of global companies assessed
on the CDP A List for climate change action. Visit usbank.com for
more.
About U.S. Bancorp Community Development Corporation:
With $34.9 billion in tax credit equity committed as of March
31, 2021, U.S. Bancorp Community Development Corporation, a
subsidiary of U.S. Bank, provides innovative financing solutions
for community development projects across the country using state
and federally sponsored tax credit programs. USBCDC's commitments
provide capital investment to areas that need it the most and
contribute to the creation of new jobs, the rehabilitation of
historic buildings, the construction of needed affordable housing,
the development of renewable energy facilities, and the generation
of commercial economic activity in underserved communities. Visit
USBCDC at www.usbank.com/cdc.
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Susan Beatty U.S. Bank susan.beatty@usbank.com
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