NY Small Business Funders Collective will award $500,000 to local organizations
Submitted by Principal Financial Group, Inc.
NEW YORK, September 12, 2022 /CSRwire/ - On the heels of layered crises and big challenges for small business in the New York City region, JPMorgan Chase, M&T Bank, Principal Foundation, Santander Bank, and Surdna Foundation have come together to launch the NY Small Business Funders Collective (SBFC). Through joint work and pooled funds, the SBFC will collectively award $500,000 to improve access to capital and technical assistance for Black, Latinx, Asian & Pacific Islander, and Indigenous entrepreneurs in the five boroughs whose businesses are poised for growth.
In New York City alone, more than 227,000 small businesses employ 1.6 million workers, creating jobs, opportunity, and wealth. A 2020 research study on NYC small business needs conducted by Next Street found that an estimated 68 percent of revenue generated by local businesses stays within the community, making them a vital economic driver. However, a capital gap of $45 billion annually exists for these entrepreneurs. This gap is magnified for entrepreneurs of color, for whom equitable access to social, financial, and knowledge capital is often out of reach.
The NY Small Business Funders Collective launched to address this gap. Beginning today, local business support and intermediary organizations can apply to the SBFC’s 12-month planning grant program, which anticipates awarding $500,000 throughout the five boroughs. Successful applicants will be 501c3 nonprofits who describe new or existing partnerships targeting entrepreneurs of color with interventions that will accelerate growth in revenue, customers, new products/services, or other measures of positive momentum.
In launching this initiative, the members of the Collective made the following joint statement:
“As a Collective of funders and financial institutions, we know small businesses here in New York City are a powerful driver of growth and opportunity, but there must be more resources available to help these entrepreneurial ventures, especially in times of inflation and uncertainty. We’re proud to join forces with each other to invest in a more inclusive economy and to drive wealth generation opportunities for more New Yorkers.”
Members of the SBFC have each made a multi-year commitment to the pooled fund. Year One planning grants are expected to be followed by implementation grants for first-round grantees and others with initiatives that are ready to go.
Applications for the planning grant opportunity open September 7, 2022 and are due October 14, 2022. Those interested in learning more can visit www.nysmallbusinessfunders.org to obtain grant guidelines, application link, and further information.
A Collaborative Effort for Collective Impact
The NY Small Business Funders Collective (SBFC) is a group of philanthropic entities coming together to strengthen the local small business ecosystem across the New York region. Members of the Collective share the belief that entrepreneurship is a powerful lever for innovation, community vibrancy, and economic development. Through pooled grantmaking, the Collective aims to create opportunities for Black, Latinx, Asian & Pacific Islander, and Indigenous entrepreneurs to close the racial wealth gap.
The SBFC is a fiscally-sponsored project of Philanthropy New York.
If you would like more information about membership in the NY Small Business Funders Collective (SBFC), please contact Project Manager Kristine Michie at ImpactFull, email@example.com. For questions regarding the Planning Grant opportunity, email firstname.lastname@example.org.
Principal Financial Group® (Nasdaq: PFG) is a global financial company with 18,500 employees1 passionate about improving the wealth and well-being of people and businesses. In business for more than 140 years, we’re helping more than 51 million customers1 plan, protect, invest, and retire, while working to support the communities where we do business, and build a diverse, inclusive workforce. Principal® is proud to be recognized as one of America’s 100 Most Sustainable Companies2, a member of the Bloomberg Gender Equality Index, and a Top 10 “Best Places to Work in Money Management3.” Learn more about Principal and our commitment to building a better future at principal.com.
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