Small Business Investment
The small business sector is a key pillar of the U.S. economy and an important driver of post-recessionary economic recovery. NALCAB believes that small business development is an important path to wealth creation and young businesses. In their first five years of existence, small businesses are credited with being the primary source of net job creation in the United States. For Latinos in particular, small business development and self-employment have an outsized economic importance and will be critical not only as a strategy for balancing the distribution of assets for Latino families, but as a driver of the entire national economy.
What We Do
The NALCAB network includes more than 40 small business-serving organizations nationwide. NALCAB and its member organizations support small business owners by:
- Reducing barriers to market entry through small business training and technical assistance,
- Increasing access to capital and building credit through micro-lending, and
- Creating access to markets by developing commercial corridors, incubators and public markets.
- In 2012, the Clinton Global Initiative – America accepted a three-year Commitment to Action from the NALCAB Network to catalyze $70 million in investment in small businesses and small business districts. In 2015, the NALCAB network successfully met and exceeded this commitment by cumulatively securing $76.8 million in new capital for small business lending and leveraging more than $30 million for job-creating economic development projects. With leading support from Sam’s Club Charitable Giving, Citi Foundation and the Surdna Foundation, NALCAB supported more than 115 non-profit organizations that provide small business development services and lending with technical assistance, training and over $3 million in grants. These engagements increased the capacity and effectiveness of local nonprofit small business programming efforts and resulted in the formalization or strengthening of 688 businesses and the creation of 753 jobs.
- NALCAB’s first Citi Foundation Growing Assets grant resulted in a multi-market pilot project that provided culturally-relevant small business development services to Latino small business entrepreneurs and developed a tool kit for non-profit organizations that seek to build assets in their communities by supporting small business development. Through this project, NALCAB gained valuable insight on specific financial needs among Latino small business owners, including credit building, credit repair and access to capital. Based on this insight, NALCAB now proposes to provide subgrants, training, technical assistance and peer connections to three non-profits in Boston, Washington DC and Chicago, to integrate non-profit small business development and financial capability programs with a focus on credit.