Heard on the Street: the case for CDFIs, the role of the SBA, and how foundations are committing to changing their practices

By March 23, 2020 Heard on the Street

Heard on the Street – here’s what we were reading last week:

Ensure small business survival during COVID-19 crisis: Fund the CDFI Fund: Opportunity Fund and other nonprofit small business lenders call on Congress to apportion $1 billion of the $500 billion earmarked for businesses to go to the CDFI Fund, allowing CDFIs across the country to leverage $12 billion in capital that will be deployed to communities in need.

Coronavirus Stimulus Plan Counts on Small Business Administration to Fund Recovery: Mr. McConnell’s proposal calls for roughly $300 billion in funding for small-business interruption loans that would be issued through the SBA’s 7(a) program, the agency’s flagship loan offering. The program is a partnership between private financial firms, which make the loans, and the SBA, which guarantees them.

A Growing Group of Foundations Pledge No “Business as Usual” with COVID-19: Ford and the Trust-Based Philanthropy Project decided to take a leap of leadership in proposing a “pledge of action” for changed practices in institutional philanthropy. Within 48 hours, they soon found many others to join them. Forty US and international foundations have signed the pledge thus far, which is front and center on the website of the partnering Council on Foundations.

13 Entrepreneurs Of Color Share How COVID-19 Has Impacted Their Business: One of the most at-risk populations feeling the effects of COVID-19 are business owners—and for business owners of color, the challenges may be even more overwhelming. A wealth of evidence demonstrates the difficulties that entrepreneurs of color face when it comes to receiving business funding.