This content is sponsored by .
Sandra Foote, owner of , a small restaurant in Northwest D.C., wasn鈥檛 sure her business would survive the pandemic.
Foote started the diner nine years ago with her husband, who has since passed away. Her business tanked during the height of the pandemic, leaving her unsure how she could move forward.
Luckily, a forgivable grant from nonprofit lender , backed by , helped her pay rent and keep her staff on payroll.
鈥淭his has been very emotional for all of us,鈥� said Foote. 鈥淥nce I paid the rent, I knew that help was coming and that I could keep my business. This is something I am very thankful for, and I feel very lucky.鈥�
Wells Fargo launched the Open for Business Fund in July 2020. It is a roughly $420 million small business recovery effort that works with small business-focused nonprofits, Community Development Financial Institutions and other community groups to support racially and ethnically diverse small business owners and other entrepreneurs impacted by the pandemic.
Community Development Financial Institutions, also called CDFIs, are nonprofit lenders that help business owners access funding that they might otherwise be unable to qualify for using traditional banking options.
In utilizing CDFIs, businesses can obtain emergency grants and low-cost loans along with coaching and training to help revamp their business models.
鈥淪o many of our small businesses aren鈥檛 just shops and services; they鈥檙e reservoirs of wisdom and accumulated expertise,” said Ramon Jacobson, executive director of , “We need to help them now so they鈥檒l be there later.鈥�
A second local success story is on U Street in Northwest D.C. where the company鈥檚 owner, Eddie Lofton, applied for and received a $10,000 LISC grant, with support from the Open for Business Fund.
Lofton is a longtime tailor whose grandfather was the first African American to own a tailoring shop and tailoring school in the District.
鈥淭hat $10,000 really helped me out,鈥� Lofton said. 鈥淚鈥檒l forever be grateful,鈥� adding that the money would allow him to continue his grandfather鈥檚 legacy.
鈥淢y grandfather was a pillar in the community,鈥� he said. 鈥淛C Lofton will be around for the next 100 years because we鈥檙e going to make sure we keep it going.鈥�
鈥極pen for Business鈥� continues to flourish
The Open for Business Fund has continued to extend grants to nonprofits and CDFIs in the District.
Just recently, Wells Fargo announced that it selected , , , , to join to receive grants from the fund.
That brings about $10 million in additional money to D.C. to help underserved small businesses stay open and preserve jobs.
In addition to existing small business support, the CDFIs will develop and expand programs aimed to address systemic issues and unique challenges faced by diverse entrepreneurs.
For example, LISC DC deployed a combination of zero-interest loans ranging $15,000 to $150,000 and grants ranging from $5,000 to $15,000 to help small businesses that may be struggling to pay bills due to lower profit margins and higher expenses as a result of the pandemic.
Nationwide, the Open for Business Fund is expected to translate into roughly $1 billion in available financing, 7.5 million hours of technical assistance, and importantly, through May 31, the effort is already helping preserve a projected 90,000 jobs.
about how small businesses are making a way through the pandemic with help from Wells Fargo.
