According to a press release, Starbucks Coffee Company is investing $10 million in four community lenders to generate economic opportunities in Chicago.
This investment will help fund more than 500 loans to support small business growth, support community development projects and create more jobs in underserved communities in Chicago.
Starbucks’ $10 million investment will split between Accion Chicago, the Chicago Community Loan Fund, the Local Initiative Support Corporation and the IFF, four community development financial institutions that create economic opportunities in neighborhoods in the city. In addition to the loan, the organizations will provide borrowers with mentorship and technical assistance to ensure the success of their projects.
This investment follows the Starbucks initiative to create jobs for the United States in partnership with OFN in 2011. The program aimed to create and maintain jobs in under-served communities in the United States through a philanthropic contribution of $5 million from the Starbucks Foundation. In three years, he has raised more than $15 million in donations. Participating CDFIs have been transformed into $105 million in business funding to create or maintain more than 5,000 jobs.
Bank of America will offer a helping hand to Starbucks in distributing the investment to each of the four lenders. CDFIs should begin lending to small business owners and community organizations by early next year, although borrowers can apply for a loan now. Residents of Chicagoland can learn more and apply for a loan by visiting the respective CDFI websites.
This news comes weeks before the opening of the Starbucks Reserve Roastery on the Chicago Magnificent Mile.
BENEFITS OF MERCHANT CASH ADVANCES
Whether you operate a store, café, or barbershop as a consumer business, it can be difficult to find funders who understand your business and can provide you with the money you need. A business advance can be the solution and an attractive option for companies like yours. A business advance is not a commercial loan or an overdraft. Funds are advanced for your business based on eligible card sales and for the sale of some of your future card purchases.
Some companies use these business loans to purchase inventory and equipment for renovation or repair work. Others use them to fill a gap in their cash flow or to finance unforeseen costs. They may have advantages over more traditional business financing methods, such as speed, simplified approval, more flexible fees and payments that match the level of your card sales.
WHO CAN USE A MERCHANT CASH ADVANCE
Companies that accept credit or debit cards may apply for a cash advance, but the sectors that could benefit include:
- The bars
- Hotels and Inns
- Small businesses
- Hair and Beauty Salons
- Delicatessens or bakeries
- Flower shops
In conclusion, a Merchant Cash Advance is an innovative approach to financing small business owners. Businesses can now access business loans by selling a portion of future card sales. In the absence of monthly payments and repayments from ordinary cash flows, a cash advance is a source of funding for real-world businesses with real needs.