Charlotte’s Historic West End Receives $7.85 Million Boost with New Small Business Fund

Charlotte’s Historic West End Boosted by New Small Business Fund

In an exciting development for entrepreneurs in the Queen City, Charlotte’s Historic West End is set to benefit from a groundbreaking initiative aimed at supporting small businesses in marginalized neighborhoods. The bank, Fifth Third Bancorp, recently launched the Small Business Catalyst Fund, a whopping $7.85 million program designed to fuel growth, create jobs, and foster a more inclusive small-business ecosystem across its 11-state footprint.

A Collaborative Effort

Fifth Third has teamed up with the Community Reinvestment Fund (CRF), a renowned national nonprofit known for providing innovative financial solutions. This partnership connects local business owners with much-needed funding opportunities offered by Community Development Financial Institutions (CDFIs). These organizations specialize in assisting entrepreneurs who often face roadblocks when trying to secure capital.

So how does it all work? The Small Business Catalyst Fund combines grants, micro-loans, and small business loans ranging from $5,000 to $750,000. Joel Dancy, Fifth Third’s community development relationship manager based in Charlotte, explains that this initiative goes beyond just money—it’s about providing essential technical support as well. “This partnership presents a good symbiotic relationship between both sides,” he points out. “We’re not just being transactional; we provide expertise alongside funding.”

Supporting Local Business

For those who may not know, the CRF oversees the grant program while also offering loans that range from $250,000 to $750,000. Additionally, Ascendus, a nonprofit small-business lender based in New York, will dish out loans from $5,000 to $250,000. It’s clear that this initiative is designed to cater to the specific needs of small businesses in Charlotte’s Historic West End.

But that’s not all! Local Initiative Support Corp. (LISC) Charlotte is at the forefront of the support coalition, providing hands-on assistance. Tara Campbell, Fifth Third’s director of Community Development Block Grant operations and strategy, emphasizes the need for a tactical approach. According to her, “Capital alone isn’t the only solution.” She believes that “technical assistance is really what elevates and serves as the catalytic push” for small businesses to reach new heights.

A Broader Vision

This new program is just one piece of the puzzle. The Small Business Catalyst Fund builds on Fifth Third’s larger $180 million Empowering Black Futures Neighborhood Investment Program, which aims to revitalize Black-majority communities hit hard by historical disinvestment. Since its inception in 2021, Fifth Third has already delivered over $13.5 million in small-business lending to nine selected neighborhoods across seven states.

However, as Campbell noted, the team realized that the previous initiatives were missing a crucial aspect: meaningful support for small businesses. “It was vital to find ways to provide both technical assistance and access to capital so these businesses could grow and hire community members,” she stated.

Breaking Down Barriers

Dancy explains how this fund reflects a renewed commitment to address systemic issues like redlining, which have historically neglected certain communities. “We discovered areas where we could strengthen our resource support for local minority, Black, and brown entrepreneurs,” he remarked. This commitment can be a game-changer in creating opportunities for small businesses.

A Bright Future Ahead

Looking toward the future, the Small Business Catalyst Fund is funded by organizations such as the Fifth Third Foundation, Fifth Third Bank Community Development Corporation, and the Rockefeller Philanthropy Advisors. The Ohio-based Economic and Community Development Institute is also a key player. Interestingly, Campbell hinted at plans to expand the fund, aiming for additional funding and a broader geographic reach down the line.

Another exciting step forward for the Historic West End is the opening of Fifth Third’s new branch in January, which will serve as a hub for innovative financial services, educational resources, and more. Dancy is optimistic, saying, “The Fund as a whole for the corridor, for the West side, is key. It shows we have a sincere commitment to help these businesses thrive.”

This new initiative is a fantastic step forward for small businesses in Charlotte’s Historic West End, leveraging both financial resources and technical assistance to create a more vibrant community and economy. If you’re a small business owner or aspiring entrepreneur in the area, now is the time to take advantage of this exciting opportunity!