Wells Fargo Foundation Awards Millions to Raza Development Fund and CPLC to Spark Small Business Growth and Job Creation
Diverse Community Capital Program invests nearly $4 million in Arizona to help underserved and diverse entrepreneurs grow
PHOENIX, January 30, 2020 – To accelerate the growth of diverse small businesses and job creation in the greater Phoenix region, the Wells Fargo Foundation is investing millions with Raza Development Fund (RDF) and Prestamos. The funds will not only help grow and sustain more local jobs, but will also help bolster local neighborhoods.
As part of its Diverse Community Capital program, these two grants will go towards helping to expand financing, financial education and new loan products for minority small businesses, small business owners, and those hoping to live their dream of becoming business owners in historically underserved minority communities.
“Empowering small businesses is a direct and impactful way to stimulate job growth,” said Brandee McHale, president of the Wells Fargo Foundation. “RDF and Prestamos (CPLC) are experts at identifying and coaching diverse small business owners who are ready to learn how to take their business to the next level. Collaborating locally helps us strengthen the small business ecosystem, which in turn, builds job opportunities and a deeper sense of community.”
“While our country’s economy prospers, many small businesses made up of young Latino and minority entrepreneurs, are held back from growing and prospering due to lack of affordable financing. Wells Fargo Foundation’s $3 million investment in RDF will be leveraged to make loans totaling at least $5 million to our communities’ small businesses,” said Tom Espinoza, President & CEO of Raza Development Fund.
Raza Development Fund, Phoenix, will use the grant to enhance its services and technical assistance for diverse entrepreneurs in South Phoenix with a focus on larger-scale loans for growth-stage companies. With new financing, small business owners anticipate sustaining approximately 275 local jobs.
Raza Development Fund is the largest Latino Community Development Financial Institution (CDFI), with more than $400 million in total assets under management, RDF has provided capital to Latino-serving organizations nationwide. These organizations have received technical assistance and loans, which have helped leverage nearly $3 billion in private capital for education, affordable housing and healthcare projects. RDF recently, received an AA(-) credit rating from S&P Global Ratings.
Wells Fargo is bringing additional small business resources to the region through a collaboration with Prestamos, a subsidiary lending division of Chicanos Por La Causa (CPLC) which joins a prestigious network of lenders implementing a new national loan fund. The Wells Fargo Foundation recently made a historic $10 million grant to NALCAB — National Association for Latino Community Asset Builders — to support growth-oriented lending to minority-owned businesses nationwide through a network of Latino-led nonprofit business lenders. The new Acceso Loan Fund is designed to help diverse entrepreneurs scale to a greater size, expanding their revenue, impact on the economy and ability to provide jobs. Prestamos is an equal share partner in the fund which will provide small business loans in the range of $50,000 to $500,000.
“CPLC provides a better life through business and employment opportunities that leads to self-sufficiency and empowerment. Wells Fargo Foundation shares CPLC’s understanding that access to capital to help small business owners thrive is key to building a vibrant economy and healthy community. This commitment will allow CPLC Prestamos to offer additional investment and assistance to the clients we serve,” said David Adame, President & CEO of Chicanos Por La Causa.
Prestamos, a Community Development Entity, has deployed more than $100M in capital to small businesses creating over 2,200 jobs in the southwestern United States. Prestamos successfully promotes business and community development and provides technical assistance, business capital and commercial real estate loans throughout Arizona, Nevada and New Mexico.
Started in 2015, the Wells Fargo Diverse Community Capital program is a five-year, $175 million commitment to empower diverse small businesses in collaboration with Opportunity Finance Network. To date, the program has delivered more than 322,000 hours of technical assistance and $781 million in financing to minority-owned small businesses, enabling more than 103,000 jobs across the U.S.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a diversified, community-based financial services company with $1.9 trillion in assets. Wells Fargo’s vision is to satisfy our customers’ financial needs and help them succeed financially. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, investment and mortgage products and services, as well as consumer and commercial finance, through 7,400 locations, more than 13,000 ATMs, the internet (wellsfargo.com) and mobile banking, and has offices in 32 countries and territories to support customers who conduct business in the global economy. With approximately 260,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 29 on Fortune’s 2019 rankings of America’s largest corporations. News, insights and perspectives from Wells Fargo are also available at Wells Fargo Stories.
RDF Contact Information
Ruby Marinez, 602-417-1415
Wells Fargo Contact Information
LiAna Enriquez, 602-647-9521