Historic Multi-Bank Collaboration Selects FINANTA as Non-Profit Partner

HISTORIC MULTI-BANK COLLABORATION “FLIPS THE SWITCH”
ON MICRO-LENDING IN PHILADELPHIA

Philadelphia, PA, August 9, 2012 – Six major banks today announced a new $322,500 initiative to expand micro-lending to small businesses in Philadelphia.

The banks will work with FINANTA, a non-profit Community Development Financial Institution (CDFI), to provide access to capital, credit repair services, and business technical assistance to local under-banked and underserved micro-entrepreneurs citywide.

The banks – Bank of America, Citibank, Citizens, PNC, TD Bank and Wells Fargo – selected FINANTA after a yearlong process in which CDFIs across the city were asked to submit proposals.

The bank funding will support loan loss reserves, technical assistance services and operating capital. Their contributions will help FINANTA leverage a $750,000 loan from the Small Business Administration Microloan Program and a $125,000 grant from the City of Philadelphia’s Commerce Department.

Since 1996, FINANTA has successfully loaned nearly $35 million to over 400 entrepreneurs and others, with loans ranging in size from $400 to $3.3 million. Over 80 percent of FINANTA’s capital has funded 340 minority and/or immigrant businesses, a large portion of them being women-owned.

The Initiative aims to consolidate FINANTA’s capacity as the leading micro-lender in Philadelphia and to facilitate access to capital by micro-entrepreneurs, who generally employ fewer than six people and have very limited access to conventional sources of financing. 

“We are honored to be selected as the Initiative’s non-profit partner and are eager to build a much larger micro-lending program in Philadelphia,” said Luis Mora, President, FINANTA. “With funds from the various banks, the Small Business Administration and the City of Philadelphia’s Commerce Department, we are able to not only serve under- or un-banked individuals, but also create jobs for the entire Philadelphia community.”

The multi-bank initiative began in 2011 at the urging of the Urban Affairs Coalition’s Community and Economic Development Committee.  It was led by Patrick Kelly, Senior Vice President of Bank of America, who chaired the effort, Stephanie Wall, Senior Vice President of Wells Fargo and Don Haskin, Senior Vice President of Citibank, and Don Kelly, Director, Community and Economic Development, Urban Affairs Coalition.

“We realized that a community loan fund like FINANTA is especially well positioned to channel additional capital to the right borrowers,” said Patrick Kelly, of Bank of America. “The bank funds are to be used for technical assistance, operating grants, loan capital and loan loss reserve capital – all designed to increase the capacity and ability of FINANTA to make loans up to $50,000 to small businesses in low- and moderate-income areas of Philadelphia.”

“The Urban Affairs Coalition is really proud of this initiative because the banks came together through our organization to respond to the needs in the community for more loan capital for micro-entrepreneurs, including minority and immigrant entrepreneurs,” said Sharmain Matlock-Turner, the Coalition’s President and CEO.

To mark the occasion, micro-entrepreneur and FINANTA client Micah Gold-Markel, owner of Solar States, “flipped the switch” on the 30 kilowatt solar panel installation he developed that powers the FINANTA headquarters. “This highly efficient system is expected to reduce FINANTA’s electricity costs by nearly $90,000 over the next ten years,” said Gold-Markel. “We are very excited to be part of the new initiative.”  With the completion of the FINANTA Center installation, Solar States now manages over 100 kilowatts of solar energy capacity within the American Street industrial corridor.

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FINANTA
FINANTA is a non-profit community development financial institution (CDFI) that provides a wide range of financial products and services, including business loans and business technical assistance, mortgage counseling and mortgages, and financial literacy services to Philadelphia residents. Founded in 1996, FINANTA has distinguished itself among the region’s micro and small business sector by delivering services in a way that is uniquely conscious of the cultural, social, and language barriers that the growing immigrant and minority population faces. FINANTA’s mission is to promote the growth and economic expansion of diverse Philadelphia communities though the infusion of capital with the provision of technical assistance and business consultation services. In this effort, the financial products and services that FINANTA provides to underserved, low- to moderate-income individuals aim to connect micro and small businesses with the resources needed to start, support or expand their business. For more information about FINANTA, please contact Alyssa Ryan at Alyssaryan@finanta.org

Urban Affairs Coalition:
The Urban Affairs Coalition is a coalition of 75 partner organizations, large and small, working on diverse issues that affect communities. They strengthen nonprofit organizations through fiscal sponsorship, capacity building, and program evaluation; improve life chances for youth and young adults; and provide economic opportunity to low-income households, working families, and disadvantaged businesses.  The Coalition unites government, business, neighborhoods, and individual initiatives to improve the quality of life in the region, build wealth in urban communities, and solve emerging issues. Visit www.uac.org for more information.