Indianapolis Collaborative Helps Black Businesses Find Funding
2024-01-14 – BE&O show ATC
A local collaborative of financial institutions is working to bring more opportunity and funding to minority-owned businesses in Central Indiana.
The Indianapolis CDFI Collaborative is made up of five community development financial institutions that focus on commercial small business lending. LISC Indy is part of the collaborative, and its Executive Director, David Hampton, says the organization plays a critical role in helping Black businesses access capital. “Many in the community just don’t know these programs exist,” Hampton says.
A recent Goldman Sachs survey shows 78% of small business owners are concerned about their ability to access capital, and less than one-third say they can afford to take out a loan due to high-interest rates.
In 2019, the collaborative was awarded $1.5 million from the JP Morgan Chase Foundation. The money was used to help CDFI fulfill its mission. That money will help LISC and the collaborative provide loans to small businesses between $1,000 and $5 million.
The collaborative specializes in helping businesses that invest in underserved communities in Indianapolis. It also sports a real estate assistance fund that grants up to $40,000 to help small businesses meet closing costs.