Investment will provide small business loans for emerging entrepreneurs
MINNEAPOLIS, Nov. 16, 2015 /3BL Media/ – Wells Fargo & Company (NYSE: WFC) today announced it has provided a $1,000,000 Equity Equivalent Investment (EQ2) to Metropolitan Consortium of Community Developers (MCCD), a 501(c)3 organization that provides small business loans and technical assistance to emerging entrepreneurs who may be challenged to meet traditional underwriting criteria by virtue of being a start-up or those who have credit challenges and/or a shortfall of collateral. MCCD will use the $1 million to fund its Open to Business program, allowing them to directly fund as many as 80 emerging entrepreneurs who would otherwise be unable to access the capital they need to pursue their dreams.
Metropolitan Consortium of Community Developers is an association of over 45 Twin Cities nonprofits who share a common mission: To work collectively to build strong and stable communities by leveraging resources for the development of people and places. The organization provides assistance with business plan development, formulating solid projections, and even providing direct loans to put entrepreneurs in a position to ultimately apply for or transition to traditional bank financing. MCCD provides loans to small businesses ranging from $1,000 to $100,000 to help them start and grow.
“Wells Fargo’s support of the Open to Business program enables us to have a dramatic effect in the communities we serve,” said MCCD Director of Finance Lee Hall. “Each dollar our program lends leverages more than $10 of private investment and equity, and we cycle these funds multiple times during the investment term to support these small businesses and their communities.”
“Wells Fargo is committed to investing in our communities,” said Paige Harris, vice president, Wells Fargo Community Lending and Investment. “Working together with MCCD means more capital to more entrepreneurs across the Twin Cities. We are excited to see them expand their reach and honored to be part of so many success stories.”
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a nationwide, 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 8,700 locations, 12,800 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 265,000 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 perspectives are also available at Wells Fargo Blogs and Wells Fargo Stories.
About Metropolitan Consortium of Community Developers
MCCD’s also provides small business loans for emerging entrepreneurs who face challenges in accessing the commercial banking system, Many of our borrowers are from low income, minority and new arrival communities. As part of a financing plan, our borrowers can receive help in planning, organizing and managing their businesses. Since 2003, MCCD had loaned over $6.7 million to over 550 entrepreneurs for business start-up or expansion projects.
KEYWORDS: Social Innovation and Entrepreneurship, Business & Trade, small business, capital, CDFI, Wells Fargo & Company, MCCD
SOURCE: Wells Fargo & Company
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This post was originally published on 3BLmedia.com
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