Updates

10 Feb

OFN and Goldman Sachs 10,000 Small Businesses Announce Finance Collaborative Participants

Philadelphia (February 10, 2015)—Opportunity Finance Network (OFN) and Goldman Sachs 10,000 Small Businesses announced today that they have selected 24 mission-driven small business lenders to participate in the Small Business Finance Collaborative. This unique and intensive technical assistance program is designed to increase capacity of small business lending in underserved communities in the U.S. Responsible, affordable credit is not readily available for small businesses, especially minority and women-led businesses, due to the decrease of mainstream finance serving this market. This new program will build the capacity of CDFIs (community development financial institutions) and other mission-driven lenders to deliver responsible and affordable loans to small businesses and entrepreneurs across the
nation.


OFN will deliver the Finance Collaborative, providing 24 mission-driven small
business lenders with an intensive two-year program of peer learning, training, and
technical assistance. As a result, each participant will create and implement a
strategic growth plan to improve lending strategies and practices, while maintaining
asset quality. Participants will be expected to report regularly on growth goals and to
adopt best practices. Funding is provided by Goldman Sachs 10,000 Small
Businesses with additional support from Surdna Foundation.

“Our nation’s economic recovery has been very uneven, with minority and womenled
small businesses in underserved communities experiencing barriers to the credit
they need to succeed. The participants in the Collaborative are uniquely positioned to
reach these communities, helping owners avoid high cost loans. They will build
strategies to aid small business and encourage sustainability, growth, and job
creation.” said Mark Pinsky, president and CEO of OFN.
The Small Business Finance Collaborative is built upon a successful prior initiative in
2011-2013 where participants reported doubling their assets, increasing their selfsufficiency
ratio, and number of small businesses reached. Participants in the Finance
Collaborative will expand on concepts learned in a previous training, including value
proposition, innovation, talent management, and the lending life cycle. The
curriculum’s foundation is adapted from the Babson-designed Goldman Sachs 10,000
Small Businesses education program.


“Research shows that small businesses are the leading drivers of economic growth
and job creation in this country. Our partnership with OFN will continue to support
mission-driven lenders, so that even more entrepreneurs gain access to the capital
they need to succeed,” said Esta Stecher, CEO of Goldman Sachs Bank USA. “These
Small Business Financing Initiative lenders were chosen because of their expertise and leadership in this area. We look forward to seeing the impact they will have in underserved communities.”


The Finance Collaborative members reflect the diversity of mission-driven small
business lenders and approaches. Some participants have a national presence, while
others serve local communities. Working in urban, rural, and Native communities,
these lenders offer a range of lending products and business models. Collectively,
the 24 participants have cumulative assets exceeding $862 million with over
7,500 small business loans outstanding totaling nearly $600 million. The 2015-2016
Small Business Finance Collaborative participants are:


• Access to Capital for Entrepreneurs, Inc. (ACE)
• Accion New Mexico ? Arizona ? Colorado ? Nevada
• Bridgeway Capital
• Brooklyn Cooperative Federal Credit Union
• California Coastal Rural Development Corporation (Cal Coastal)
• CDC Small Business Finance
• CEI
• Colorado Enterprise Fund (CEF)
• Community First Fund
• Community Reinvestment Fund, USA (CRF)
• Craft3
• Entrepreneur Fund
• Excelsior Growth Fund
• Growth Capital
• Kentucky Highlands Investment Corporation (KHIC)
• LiftFund, formerly known as Accion Texas
• Montana Community Development Corporation (Montana CDC)
• Northern Initiatives
• Pacific Community Ventures
• PIDC Community Capital (PIDC-CC)
• The Support Center
• Travois
• VEDC
• Virginia Community Capital (VCC)


About Opportunity Finance Network
OFN, the leading network of private financial institutions, creates growth that is good
for communities, investors, individuals, and the economy. Members of OFN are
community development financial institutions (CDFIs) that deliver responsible
lending to help low-wealth and low-income communities join the economic
mainstream. Through 2012, OFN’s Network originated more than $33.3 billion in
financing in urban, rural, and Native communities, and financed development/rehab
of 960,000 housing units, started or expanded nearly 94,000 business and
microenterprises, and helped create or maintain nearly 600,000 jobs. More
information is available at: www.ofn.org.

About Goldman Sachs 10,000 Small Businesses
Goldman Sachs 10,000 Small Businesses is a $500 million investment to help small
businesses in the United States create jobs and economic growth by providing
entrepreneurs with a practical business education, access to capital and business
support services. The program is based on the broadly held view of leading experts
that greater access to this combination of education, capital and support services
best addresses barriers to growth. The program is active in urban and rural
communities across the United States. Sites include Chicago, Cleveland, Dallas,
Detroit, Houston, Long Beach, Los Angeles, Miami, New Orleans, New York,
Philadelphia, and Salt Lake City, as well as a National Cohort at Babson College.
Access to capital is also available in parts of Georgia, Kentucky, Maine, Minnesota,
Montana, Oregon, Virginia and Washington. For more information, visit www.gs.com/10000smallbusinesses