Wells Fargo has committed an additional $100 million to Community Development Financial Institutions (CDFIs) across the country through the Wells Fargo Works for Small Business®: Diverse Community Capital (DCC) Program. LISC was awarded a grant through the Program and has been using the resources to create more robust and accessible entrepreneurial ecosystems that catalyze business start-ups and expansions in transforming communities throughout Los Angeles.
By providing capital and technical assistance, LISC has seen a greater number of diverse small businesses able to weather rising rents, expand, and retain greater profits during growth years leading to scale and sustainability. The pipeline of employment opportunities—particularly jobs with low-barriers to entry that provide workers with transferable skills and consistent living wages—and stronger entrepreneurial ecosystems transform the communities LISC serves in the Los Angeles region.
LISC’s current strategy to increase lending and technical assistance to diverse small businesses in Los Angeles, with a focus on those owned by African Americans and Latinos, includes (a) working with local anchor institutions and minority-owned businesses in institution supply chain industries to increase the number of minority-owned businesses accessing contract opportunities, and (b) supporting and growing African American and Latino-led mission-based lenders.
Our strategy addresses the multiple challenges minority-owned firms face in accessing debt and equity sources, including:
LISC is increasing the capacity of African American and Latino-led lending institutions in the Los Angeles region, which will improve access to capital for diverse businesses. We also serve as an intermediary to minority-led community banks and mission-based small business lenders, further enhancing these institutions’ capacity to support their balance sheets by providing business development expertise and equity equivalent capital.