Wells Fargo Invests $1M In Local Small Business Loan Program
Wells Fargo gave a $1 million investment to Minneapolis-based Metropolitan Consortium of Community Developers (MCCD) last week, a move that could finance as many as 80 startups.
In a release, MCCD said it would use the money to fund its Open to Business program, which allows the nonprofit to fund entrepreneurs who may be challenged by bad credit or a shortfall of collateral.
The organization assists new and small businesses by providing business plan development and direct loans to entrepreneurs. Small business loans from MCCD typically fall within the range of $1,000 to $100,000.
MCCD’s director of finance, Lee Hall, said in a statement, “each dollar our program lends leverages more than $10 of private investment and equity, and we cycle these funds multiple times during the investment term to support these small businesses and their communities.”
San Francisco-based Wells Fargo said in the release that it is committed to investing in communities where the bank is present. Paige Harris, vice president of Wells Fargo Community Lending and Investment, added, “working together with MCCD means more capital to more entrepreneurs across the Twin Cities. We are excited to see them expand their reach.”