From the beginning, Starbucks set out to be a different kind of company, guided by a belief that the pursuit of profit is not in conflict with the pursuit of doing good. We also know that small businesses are key to healthy communities. From a $100 million investment in our Community Resilience Fund to working with hundreds of vendors of all sizes and categories within our supply chain we are committed to dedicating resources to support small businesses and strengthen the communities we serve.
Community Resilience Fund
In January 2021, Starbucks announced new initiatives as part of a long-standing commitment to use our scale and platform to positively impact the communities we serve. One part of that is our commitment to invest $100 million to launch the Starbucks Community Resilience Fund. The Fund aims to advance racial equity and environmental resilience by supporting small business growth and community development projects in Black, Indigenous and People of Color (BIPOC) communities with historically limited access to capital. The investments will initially focus on 12 U.S. metropolitan areas and their surrounding regions: Atlanta, Detroit, Houston, Los Angeles, Miami, Minneapolis, New Orleans, New York City, Philadelphia, San Francisco Bay Area, Seattle and Washington, D.C.
In partnership with community leaders, Community Development Financial Institutions (CDFIs) and other impact-focused financial institutions, the Fund will help provide access to capital intended to support small businesses and neighborhood projects, including those addressing the inequitable impacts of climate change.
Community Resilience Fund Frequently Asked Questions
Who are the target recipients?
- Starbucks will invest in communities by funding Community Development Financial Institutions (CDFI) and other impact-driven financial institutions that provide capital to small businesses and nonprofit community projects in our target markets.
- By partnering with CDFIs and other mission-driven financial institutions, Starbucks is intentionally focusing on supporting financial institutions with deep experience serving BIPOC communities that have historically had limited access to capital.
- If you represent a business or community project, we encourage you to connect directly with CDFIs serving your community.
What is the Fund’s disbursement timeline?
- The Starbucks Community Resilience Fund will invest $100 million by 2025.
- Loans will be structured as long-term capital to catalyze investments in highly impactful small businesses and community projects.
Are there plans to expand the program beyond the 12 metro areas?
- The initial market selection reflects communities in which Starbucks has a longstanding history of community investment.
- The 12 initial cities include some of the most racially and ethnically diverse major metropolitan regions in the country (source: US Census). It is important for funding to meet borrowers where they are, and we see significant opportunity to support BIPOC-owned small businesses and nonprofits serving BIPOC communities in the regions we have selected.
Does the Community Resilience Fund provide grants?
- While the Community Resilience Fund does not issue grants at this time, we know there is much to learn from the process that can inform future community investments. Our intention is that this program can serve as a template for future Starbucks programs.
Does Starbucks have any experience making these kinds of investments?
- Creating positive impact in the communities we serve is core to who we are as a company.
- In October 2019, we committed to an investment of $10 million in four CDFIs focused on responsible and affordable lending to historically underserved borrowers in Chicago: Allies for Community Business (formerly Accion Chicago), IFF, LISC and Chicago Community Loan Fund. These CDFI partners are also all part of the Opportunity Finance Network (OFN).
- The Community Resilience Fund builds on this investment in Chicago through a $100 million commitment intended to support BIPOC communities with historically limited access to capital. Through the Fund, we will continue to invest largely in CDFIs.
- This investment is designed to support small businesses and community development projects that create jobs and desired services that ultimately drive economic vitality in the community.
Additional Background on CDFIs
- CFDIs have an expansive history dating back to the 1930s of supporting historically underserved communities and connecting them to financial products and services they might otherwise be denied by larger banks or other financial institutions.
- From banks, to credit unions, venture capital funds and nonprofits, CDFIs come in a variety of forms. All share the common goal, however, of creating opportunity in lower-income, lower-wealth, and other historically underserved populations from small business lending to financing community development projects.
- CDFIs provide access to capital and other financial services, alongside mentoring and technical assistance, to support communities in myriad ways, from financing a home for first-time homebuyers to providing loans to small businesses and investing in local health care centers, schools, or other community facilities.
- As mission- and values-driven lenders that are often based in the communities they serve, CDFIs are positioned to meet borrowers where they are.
Supplier diversity and inclusion
Since 1998, Starbucks has been committed to providing an environment where diverse suppliers have an equal opportunity to compete for our business. The Starbucks Supplier Diversity and Inclusion program drives inclusion of qualified businesses with a focus on suppliers of all sizes and categories. In FY21, we spent nearly $800 million with diverse suppliers, supporting more than 6,400 jobs and contributing to $1.2 billion in total direct, indirect and induced economic impact nationwide.
To continue this commitment we have set goals to increase our annual spend with diverse suppliers to $1.5 billion by 2030. As part of this commitment we will work with other organizations with the aim to lead, influence and shape supplier diversity excellence globally.
To ensure accountability and track progress we will share annual updates on progress towards these commitments. To learn more, visit starbucks.com/business/supplier-diversity/.