Wells Fargo’s commitment to Craft3 now totals $19.25 million for underserved businesses
[SEATTLE], May 31, 2016
– Wells Fargo has awarded Craft3 with a $250,000 grant to support the regional Community Development Financial Institution’s (CDFI) diverse small business lending efforts and inaugural summer internship program. The award follows a $7 million loan made by Wells Fargo to Craft3 in December 2015. Combined, these resources will help to support Craft3’s plan to make 180 loans totaling $56 million over a three-year period to entrepreneurs-of-color and woman-, veteran- and immigrant-owned businesses in Washington and Oregon. The award was celebrated Tuesday at Craft3 borrower and immigrant-owned restaurant Saley’s Classic in Seattle’s Denny Triangle neighborhood.
“Since Craft3 was founded, more than half of our commercial borrowers have been diverse small businesses. Craft3 is proud that this new partnership with Wells Fargo will increase that share even further – keeping our communities strong by investing capital in the businesses that need it most,” said Adam Zimmerman, Acting President and CEO. “These awards are a vote of confidence in Craft3’s ability to make a real difference improving access-to-capital equity for underserved entrepreneurs – something that we believe is required for a strong regional economy.”
The grant funding will support development of Craft3’s next five year business strategy and plan, the establishment of an internship focused on developing new talent from underrepresented populations and an additional commercial lending team member to specifically focus on diverse business development and assistance based out of Craft3’s Seattle office in Pioneer Square. The lending capital directly supports loans to underserved populations, including entrepreneurs-of-color and woman-, veteran- and immigrant-owned businesses.
Craft3 is one of 15 CDFIs across the country to receive a total of $22.3 million in lending capital and grants as part of the Wells Fargo Works for Small Business: Diverse Community Capital program. The six-round Diverse Community Capital (DCC) program will provide a total of $75 million in lending and grant capital over three years to CDFIs that support diverse-owned small businesses. CDFIs are private, nonprofit financial institutions that assist underserved populations.
“Helping our small business customers is one of the most important things we do at Wells Fargo,” said Patrick Yalung, Washington regional president for Wells Fargo. “This investment in Craft3 will go a long way to help diverse small business owners in the Pacific Northwest gain access to the capital they need to succeed.”
In addition to the recent $7.25 million Wells Fargo investments, Craft3 will also participate in the social capital component of the DCC program, which offers activities to help other CDFIs build effective support networks, and improved social infrastructure to increase their capacity to reach diverse small businesses.
The DCC program launched in November 2015 by providing $4.45 million in loan and grant funds to three CDFIs and encouraging others to submit an interest form for the program’s first round. More than 100 CDFIs responded and Wells Fargo has now distributed a total of $5.67 million in grants and $16.67 million in lending capital to 15 CDFIs.
Window Now Open for DCC Round Two
Wells Fargo opened the window for interest forms for the second round of its Diverse Community Capital program on May 2 and will accept the forms until June 1. CDFIs can visit www.wellsfargo.com/cdfi to learn more about the program’s guidelines and to access the link to the online interest form. Available support from the program includes the following:
- Grant Capital. Available to CDFIs to build their financial, operational, and human capacity to serve diverse small businesses.
- Debt Capital. Available to CDFIs to build their lending capital to serve diverse small businesses. Financing will include senior debt and subordinated debt.
- Social Capital. Offers CDFIs support by focusing on activities including mentorship, peer learning, marketing/outreach, underwriting and guidance on tailored products. The Social Capital component of the program is offered through Opportunity Finance Network.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a diversified, community-based financial services company with $1.8 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through 8,800 locations, 13,000 ATMs, the internet (wellsfargo.com) and mobile banking, and has offices in 36 countries to support customers who conduct business in the global economy. With approximately 269,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 30 on Fortune’s 2015 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy our customers’ financial needs and help them succeed financially. Wells Fargo donated $281.3 million to 16,300 nonprofits in 2015 and team members volunteered 1.8 million hours serving their communities. Wells Fargo perspectives are also available at Wells Fargo Blogs and Wells Fargo Stories.
Craft3 is a Pacific Northwest-based nonprofit Community Development Financial Institution specializing in loans that strengthen the region’s economy, families and environment. It lends to businesses and nonprofits throughout Oregon and Washington. In many counties, Craft3 also offers affordable loans to homeowners for septic system repair or energy-efficiency upgrades. Since inception in 1994, Craft3 has invested more than $390 million in over 4,800 people and businesses from offices in Ilwaco, Seattle, Spokane and Port Angeles, Washington and in Bend, Astoria and Portland, Oregon. To learn more, visit www.Craft3.org.
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