Wells Fargo has announced the launch of a $20 million program designed to help nonprofits across the country assist small business owners in scaling operations or increasing revenue.
Launching initially in Chicago, Open for Business Growth will expand across the United States over the coming year. Allies for Community Business (A4CB), a nonprofit that provides capital, coaching, and connections for entrepreneurs, is the first Open for Business Growth recipient. A4CB was awarded $2.5 million in support of efforts to expand the construction industry around Chicago and help businesses that have fluctuating revenue flow, such as restaurants and retail. To that end, it will bolster its partnership with HIRE360, a specialized construction loan program that offers advisory services and mentoring.
“Many small businesses need more than a microloan but are not yet large enough for traditional financing,” said A4CB chief executive Brad McConnell. “We are offering creative capital that does not dilute the entrepreneur’s ownership. We’re expanding access to flexible financing for which repayment shrinks or grows depending on the highly variable revenues that many small business owners generate month to month. Wells Fargo’s grant will spark growth for Allies for Community Business, the small businesses we serve, and the community.”
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