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The resiliency of millions of small businesses across the U.S. has been deeply tested as the pandemic lingers. With a focus on keeping small businesses open, to vital capital and resources needed to weather the financial strain on entrepreneurs.
鈥淭he PPP loans breathed life into us,” said Suha Kaidbey, owner of the floral shop
While business revenue at the shop dropped about 50% during the pandemic, Kaidbey found a lifeline as she applied for and received both rounds of PPP loans from Wells Fargo.
Le Printemps used the loans for payroll and to pay bills.
“I鈥檓 thankful every day,” Kaidbey said. “I wake up and say, 鈥楾hank you Wells Fargo.鈥� Otherwise, a shop like this would鈥檝e been closed a long time ago.鈥�
鈥極pen for Business鈥� mindset leads to success
But the company knew one avenue of support was not going to be enough to drive inclusive economic recovery. Wells Fargo has been expanding , an initiative that focuses on long-term resiliency programs for small businesses, including racially and ethnically diverse business owners who have been disproportionately impacted by the pandemic.
Through the fund, Wells Fargo donated roughly $420 million to nonprofits and Community Development Financial Institutions nationwide.
Community Development Financial Institutions, also called CDFIs, are nonprofit lenders that help business owners access funding that they might otherwise be unable to qualify for using traditional banking options.
In utilizing CDFIs, businesses can obtain emergency grants and low-cost loans along with coaching and training to help revamp their business models.
鈥淪o many of our small businesses aren鈥檛 just shops and services; they鈥檙e reservoirs of wisdom and accumulated expertise,” said Ramon Jacobson, executive director of , a non-profit CDFI that supports small businesses in the nation鈥檚 capital. “We need to help them now so they鈥檒l be there later.鈥�
, a small restaurant in Northwest D.C., was among the companies that secured a grant through LISC that did not need to be repaid.
鈥淭his has been very emotional for all of us,鈥� said the diner’s owner Sandra Foote.
Foote started the business nine years ago with her husband, who has since passed away.
As she works to emerge from the pandemic, the grant money has helped Foote stay afloat while providing fresh hope and motivation for her and her staff.
鈥淥nce I paid the rent, I knew that help was coming and that I could keep my business,鈥� Foote said. 鈥淭his is something I am very thankful for, and I feel very lucky.鈥�
A similar success story came at on U Street in Northwest D.C. where the company鈥檚 owner, Eddie Lofton, applied for and received a $10,000 LISC grant last year.
Lofton is a longtime tailor whose grandfather was the first African American to own a tailoring shop and tailoring school in the District.
鈥淭hat $10,000 really helped me out,鈥� Lofton said. 鈥淚鈥檒l forever be grateful,鈥� adding that the money would allow him to continue his grandfather鈥檚 legacy.
鈥淢y grandfather was a pillar in the community,鈥� he said. 鈥淛C Lofton will be around for the next 100 years because we鈥檙e going to make sure we keep it going.鈥�
Making a way to stay open
The Open for Business Fund has continued to grow.
Wells Fargo has provided grants to , , , , and since the fund started just over a year ago.
This effort contributed about $10 million to D.C. to help underserved small businesses stay open and preserve jobs.
In addition to existing small business support, the CDFIs will develop and expand programs aimed to address systemic issues and unique challenges faced by diverse entrepreneurs. It will be critical to make resources available to entrepreneurs on an ongoing basis given the duration of this pandemic.
Through August, the Open for Business Fund is enabling nonprofits to reach a projected 137,000 small businesses nationwide, including in the District.
