Small Business Investment
Small business development is an important path to wealth creation and small businesses in their first five years are credited with being the primary source of net job creation in the United States. For Latinos, entrepreneurship has outsized economic importance and is critical as a strategy for balancing the distribution of assets for Latino families, and as a driver of the national economy. NALCAB supports member organizations in Latino communities across the country to reduce barriers to entry, promote access to capital, and facilitating the creation of commercial corridors, incubators and mercados.
Types of TA Support/What We Do
NALCAB supports small business serving members through grant making and technical assistance to build member capacity in the following key areas:
- CDFI certification and loan fund capitalization
- Local and national small business policy
- Small business development and lending best practices
- Developing performance indicators and data management tools
- Enhancing program and organizational sustainability
Current Project Highlights
Small Business Investment Partnership
Understanding the Impacts of Neighborhood Change on Small Business
Blueprint for Culturally-Relevant Small Business Development
Fueling California’s Economic Growth
A Survey of Small Business: Owners in 11 Markets. Insights into Latino and Immigrant Entrepreneurship
CDFI Capacity Building
NALCAB has a number of initiatives designed to strengthen the capacity of member CDFIs through lending consortia, loan fund capitalization, and policy capacity building. Undergirding these efforts is a commitment to peer exchange and learning on a variety of issues within the industry.
Sam’s Club Small Business Investment Initiative
NALCAB has had a seven year, multi-grant partnership with Sam’s Club in support of NALCAB’s small business investment work. This funding has allowed NALCAB to build expertise on Latino entrepreneurship and has supported small business development non-profits in expanding their ability to provide culturally-relevant services. Participating organizations have made large strides towards enhancing their programming and building long term sustainability.
- 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.