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.

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Working with others to advance economic opportunity in our communities

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We believe in the power of public-private partnerships to support communities. By sharing insights from our long history of community-based programs and initiatives and collaborating with others, we hope to create broader impact on racial equity and wealth creation across the country.

Starbucks is proud to join the Economic Opportunity Coalition, a newly formed public-private partnership with several federal agencies to address economic disparities and accelerate economic opportunity in historically marginalized communities. The Coalition will coordinate across public, private, and social services sectors to develop and collaborate on new services, programs and products that will support deploying resources where they are most needed.

Starbucks leadership on the Community Resilience Fund and broader inclusion &amp; diversity commitments support the coalition’s efforts in investing in CDFIs and MDIs and supporting entrepreneurs and minority-owned businesses.

In <a href="https://stories.starbucks.com/press/2021/starbucks-expands-initiatives-to-advance-opportunity-equity-and-inclusion-in-the-communities-it-serves/">January 2021</a>, 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.

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Meet the <a href="https://stories.starbucks.com/press/2022/starbucks-selects-seven-local-lenders-for-first-round-of-community-resilience-fund/">Community Development Financial Institutions</a>

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Community Resilience Fund Frequently Asked Questions

Who are the target recipients?

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What is the Fund’s disbursement timeline?

Are there plans to expand the program beyond the 12 metro areas?

Does the Community Resilience Fund provide grants?

Does Starbucks have any experience making these kinds of investments?

Additional Background on CDFIs

Working with others to advance economic opportunity in our communities&nbsp;

We believe in the power of public-private partnerships to support communities. By sharing insights from our long history of community-based programs and initiatives and collaborating with others, we hope to create broader impact on racial equity and wealth creation across the country.&nbsp;

Starbucks leadership on the Community Resilience Fund and broader inclusion &amp; diversity commitments support the coalition’s efforts in investing in CDFIs and MDIs and supporting entrepreneurs and minority-owned businesses.&nbsp;&nbsp;

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 <a href="https://www.starbucks.com/business/supplier-diversity/">starbucks.com/business/supplier-diversity/.</a>

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Starbucks Community Resilience Fund supports small business growth and community development projects in Black, Indigenous and People of Color (BIPOC) communities.

Starbucks support of small businesses

Stories to inspire and nurture the human spirit

Starbucks Stories

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Starbucks Community Resilience Fund support small business growth and community development projects in Black, Indigenous and People of Color (BIPOC) communities.

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These organizations focus on advancing small business growth and community development projects in BIPOC communities across the country

In January 2022 Starbucks selected the first seven Community Development Financial Institutions (CDFIs) to receive funding as part of the company’s Community Resilience Fund.1 With this first round, Starbucks is investing $21 million across these organizations to support equity and economic growth in the communities it serves.

ACE | Access to Capital for Entrepreneurs, Inc. (Atlanta, Ga.) is a mission-driven nonprofit lender that has supported over 2,000 businesses to create and retain more than 14,000 jobs in Georgia for two decades. ACE provides loans and business development services with a focus on diverse entrepreneurs - persons of color, women and low to moderate income individuals. These services include coaching and providing capital to sustain their businesses, retain their employees and thereby support their local communities.

“Our partnership with Starbucks will allow ACE to continue our critical work of capitalizing businesses of varying size and scope. Starbucks capital investment is timely, and the partnership will support ACE’s mission and vision of growing small businesses, spurring economic growth, and creating wealth within communities. In 2021, ACE deployed more than $32 million in affordable lending capital and provided 18,000+ hours of business advisory – which represents historic volume for our CDFI. With 87% going to underserved small businesses, it highlights our ability to move capital quickly and meet diverse small businesses where they are as the economic impacts of the pandemic linger.” – Martina Edwards, Chief of Strategic Partnerships, Access to Capital for Entrepreneurs&nbsp;

Accion Opportunity Fund (National) is&nbsp;one of the nation’s leading nonprofit Community Development Financial Institutions focused on small business lending, business advising and supporting diverse communities.&nbsp;Accion Opportunity Fund works to&nbsp;create an inclusive, healthy financial system that supports the nation's small business owners by connecting entrepreneurs to affordable capital, educational resources, coaching, and networks.&nbsp;Opportunity Fund Community Development is the lending arm of Accion Opportunity Fund, California Finance Lender license #6050609.

“Small businesses have a tremendous impact on local communities, driving economic growth and creating job opportunities. This partnership with Starbucks will reinforce Accion Opportunity Fund’s mission to advance financial equity and inclusion for the nation’s smallest businesses.” — Luz Urrutia, CEO, Accion Opportunity Fund

Created in 1987, Black Business Investment Fund’s (BBIF) (Miami, Fla.) mission is to develop and promote Black business enterprises through education, training, loans, investments and other activities. In tandem, BBIF invests in promoting an atmosphere conducive to the development of Black businesses. A mission-driven lender, BBIF helps communities and businesses thrive by providing loan capital and specialized financial technical assistance services. Since its inception, BBIF has provided over $62 million in loans to more than 800 businesses and leveraged $292 million in New Markets Tax Credit community investments. BBIF’s investments have helped to create and sustain over 17,800 jobs.&nbsp;

“Through this Starbucks partnership and investment, Black Business Investment Fund is excited to continue to expand our work and support to Black businesses in the Miami metropolitan area, providing affordable, creative, and flexible capital, while impacting job growth and promoting business resiliency.” —&nbsp; Inez Long, President and CEO, Black Business Investment Fund

“This is not our first time engaging with Starbucks to create change in our community – BBIF was a Create Jobs for USA grantee in 2011. Having Starbucks continued support of BBIF’s intentional work and unique mission underscores the critical importance of CDFIs, particularly in BIPOC communities.” — Jasmine Gebon, VP of Strategic Initiatives, Black Business Investment Fund&nbsp;

IFF (Detroit, Mich.) is&nbsp;a mission-driven lender and real estate expert that works at the nexus of facilities and finance to help community organizations achieve their missions by creating safe, inspiring physical spaces. IFF works across many sectors, including human service agencies, schools,&nbsp;childcare&nbsp;providers, community health centers, housing developers, and grocery stores. They are guided by a commitment to be an inclusive, anti-racist and anti-oppressive institution that honors communities as asset-rich and as experts in their own stories. IFF serves the Midwest, including Detroit, where IFF has deployed over $100 million in loans to support community organizations since the Detroit office was established in 2014.&nbsp;

“Since our founding, IFF has been working hard to overcome the systemic barriers to accessing capital by redefining how we assess risk and seeing all that communities have to offer rather than all that they lack. This is especially salient for a city like Detroit, which is 78% Black and has struggled to overcome structural challenges like low appraisal values for decades. Where some investors see risk and challenges, IFF sees a rich, vibrant history with everyday heroes working to improve their communities. The low-cost, patient capital from Starbucks is critical in helping IFF support community organizations bring quality services and jobs to&nbsp;local residents.” — Chris Uhl, Executive Director of Eastern Region, IFF

Pacific Community Ventures (PCV) (Los Angeles and San Francisco Bay Area, Calif.) is a 501(c)(3) nonprofit community investor that envisions a world of thriving communities where everyone has a fair shake. Their mission is to invest in addressing racial and gender wealth gaps, and build community wealth by investing in small businesses,&nbsp;helping&nbsp;them create good jobs for working people, and making markets work for the common good. They achieve their mission through a “Good Jobs, Good Business” model that combines affordable loans with pro-bono advising, small grants, and tools and incentives to create dignified good jobs. Through September 2021, 84% of PCV’s loan capital has gone to women- and/or BIPOC-owned businesses, and 85% has gone to small businesses located in economically distressed areas.&nbsp;

“When the pandemic hit, we saw demand for our capital leap almost 10,000 percent, with loan inquiries totaling $172 million. This impact capital from Starbucks will allow us to continue delivering restorative capital to underestimated entrepreneurs who are facing the end of federal and state relief programs, to shape a more inclusive recovery ahead.”&nbsp;— Bulbul Gupta, President and Chief Executive Officer, Pacific Community Ventures

PeopleFund&nbsp;(Houston, Texas) is a nonprofit Community Development Financial Institution creating economic&nbsp;opportunity&nbsp;for underserved communities in Texas. The organization provides access to capital, education and other resources to build healthy small businesses. Over the years&nbsp;PeopleFund&nbsp;has deployed almost $200 million in loans and grants helping more than 4,500 small businesses create or retain 15,000 jobs. 65% of participants in PeopleFund’s programs are minority and 70% live in or serve&nbsp;low- and moderate-income&nbsp;communities.&nbsp;

“In 2021,&nbsp;PeopleFund&nbsp;launched the BIPOC Small Business Accelerator, a permanent program with the goal of graduating 20 people of color per quarter with the tools, capital and network they need to establish and grow their businesses. This partnership with Starbucks will make a long-lasting positive impact in our communities ensuring that more business owners than ever have access to what they need to succeed and attain financial stability.” — Gustavo Lasala, Chief Executive Officer, PeopleFund

At TruFund (Atlanta, Ga., Houston, Texas, New Orleans, La., New York, NY), it is our commitment and mission to help historically disadvantaged individuals and communities create thriving and resilient small businesses and entrepreneurial ecosystems in order to close racial and economic disparities and ensure an inclusive and equitable society. TruFund works to achieve this mission by combining comprehensive business development services with capital investments to generate economic opportunity, build wealth and create livable wage employment opportunities.

“This partnership with Starbucks willhave a myriad of positive benefits and will drive impactful and innovate solutions that will create access to affordable capital and advisory services for BIPOC business owners. We strongly believe that access to capital and business advisory services is critical to growing resilient small businesses and sustaining vibrant communities. This partnership moves us beyond the power of one to the power of team to foster inclusive economies and help close the racial wealth gap.” — James H. Bason, President and CEO of TruFund Financial Services, Inc.

1The Community Resilience Fund 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.

The cities listed next to the names of the CDFIs below indicate where each CDFI has lending operations across the CRF’s 12 target cities. Each CDFI may have operations outside of the scope of the cities listed.

These Community Development Financial Institutions (CDFIs) focus on supporting equity and economic growth in BIPOC communities.

Starbucks selects seven local lenders for first round of Community Resilience Fund

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The investment in community lenders Accion Chicago, Chicago Community Loan Fund, IFF and Local Initiatives Support Corporation will finance more than 500 loans focused on supporting Chicagoland entrepreneurs in underserved communities

CHICAGO – Today, Starbucks Coffee Company announced its plans to invest $10 million in four community lenders to drive economic opportunity in Chicago. Starbucks investment is expected to help finance more than 500 loans to foster growth in small business, support community development projects and create more jobs in Chicago’s underserved communities.

“We believe the pursuit of profit is not in conflict with the pursuit of doing good,” said Starbucks ceo Kevin Johnson. “We know that our business performs at its best when the communities we serve are thriving. This sustained investment will provide borrowers who often face barriers with access to capital and mentorship to grow their business and create more jobs in Chicago.”

“I applaud Starbucks for their commitment of corporate citizenship and efforts to strengthen the communities in which they serve,” said Mayor Lori E. Lightfoot. “Chicago’s own relationship with Starbucks stretches over three decades, and we are incredibly excited to continue that partnership well into the future, through the 200 new jobs created in the beautiful new Reserve Roastery, as well as across our neighborhoods that aligns to our new INVEST South/West initiative, as we work together to drive investment and access to opportunity for every one of our city’s residents and families.”

Investing in Chicago: How $10M Starbucks loan helps underserved areas

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The $10 million investment from Starbucks is planned to be dispersed among Accion Chicago, Chicago Community Loan Fund (CCLF), Local Initiatives Support Corporation (LISC) and IFF — four established Community Development Financial Institutions (CDFI) that drive economic opportunity in the city’s neighborhoods, especially within those with little access to the flexible, affordable capital that entrepreneurs need. In addition to lending, the organizations will provide borrowers with mentoring and technical assistance to ensure the success of their projects. 

“Our communities are filled with talent and entrepreneurial spirit,” said Meghan Harte, executive director of LISC Chicago, which has invested more than $970M in grants, loans and equity throughout Chicago. “What they often lack is access to the right kind of capital so that entrepreneurs can launch, build and grow. With this investment, Starbucks is supporting a broadly shared prosperity that will deliver clear benefits to residents, while making our neighborhoods safer and stronger.”

With more than 150+ combined years of experience providing capital and financial guidance, these CDFIs have the financial expertise and local knowledge of Chicago to support meaningful, sustainable impact. Areas of focus for loan disbursement will include small businesses, nonprofit organizations and commercial real estate ventures.

“OFN commends Starbucks for this investment in small business and job creation for the Chicago communities that need it most,” said Amir Kirkwood, chief lending and investment officer for Opportunity Finance Network® (OFN). “This welcome investment will be managed by four CDFIs who are OFN members, all expert in providing much-needed fair and responsible lending to small businesses to create economic opportunity where it really counts.”

“The Chicago Community Loan Fund has been working strategically to create more commercial retail in low-income neighborhoods for a number of years,” stated Bob Tucker, Chief Operating Officer of CCLF. “With this influx of capital from Starbucks, CCLF will leverage additional funding to help address Chicago’s loss of population in these communities and create not only access to quality goods and services, but needed jobs for local residents.”

This investment follows Starbucks <a href="https://stories.starbucks.com/stories/2011/create-jobs-for-usa-program-launches-in-u-s-starbucks-stores-and-online/">Create Jobs for USA</a> initiative in partnership with the OFN in 2011. The program was dedicated to creating and sustaining jobs in underserved communities throughout the U.S. bolstered by a $5 million philanthropic contribution from the Starbucks Foundation. In three years, it raised more than $15 million in donations, which participating CDFIs turned into $105 million in financing for businesses to create or retain more than 5,000 jobs.

“Accion provides the capital, coaching and connections that neighborhood entrepreneurs need to create jobs and wealth in underserved communities. In Chicago, entrepreneurs of color and women entrepreneurs need services that traditional financial institutions often can’t provide,” said Brad McConnell, CEO of Accion Chicago. “That’s what we do, and that’s why partnerships with thoughtful organizations like Starbucks are so crucial.”

“IFF is thrilled that a partner like Starbucks is seeing the communities of Chicago as wellsprings of opportunity,” said Matthew Roth, President Core Business Solutions at IFF. "By making an investment — one that expects to be repaid — Starbucks is betting that our communities can transform their dreams and aspirations into financial and social return.”

Bank of America will assist Starbucks in deploying the investment to each of the four lenders. The CDFIs are expected to start making loans to small business owners and community organizations by early next year, although borrowers can apply for a loan now. Chicagoland residents can learn more and apply for loans by visiting the respective CDFI websites. 

This news comes weeks ahead of the opening the Starbucks Reserve® Roastery on Chicago’s Magnificent Mile.

Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica&nbsp;coffee. Today, with more than 30,000 stores around the globe, Starbucks is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at <a href="https://stories.starbucks.com/">https://stories.starbucks.com/</a> and <a href="http://www.starbucks.com/">www.Starbucks.com</a>.&nbsp;

Accion helps neighborhood entrepreneurs grow by providing the capital, coaching, and connections small business owners need to create wealth and jobs throughout Illinois and Indiana. By partnering with entrepreneurs, Accion offers the most cost-effective way to invest in underserved communities. Accion offers small business loans between $500 and $100,000 to qualified borrowers and provides free coaching to any entrepreneur who wants to grow their business. Learn more at <a href="https://us.accion.org/region/illinois-northwest-indiana/">us.accion.org/chicago</a>.

Founded in 1991, Chicago Community Loan Fund is a federally certified Community Development Financial Institution (CDFI) providing flexible, affordable and responsible financing and technical assistance for community stabilization and development efforts and initiatives that benefit low- to moderate-income neighborhoods, families and individuals throughout metropolitan Chicago. To-date, CCLF has closed 486 loans totaling over $210 million in financing that has leveraged an additional $1.4 billion in public and private sector capital for community projects. For more information, please visit <a href="http://cclfchicago.org/">cclfchicago.org</a>.

With residents and partners, LISC forges resilient and inclusive communities of opportunity across America — great places to live, work, visit, do business and raise families. Since 1979, LISC has invested $20 billion to build or rehab 400,500 affordable homes and apartments and develop 66.8 million square feet of retail, community and educational space. For more information, please visit <a href="https://www.lisc.org/chicago">lisc.org/chicago</a>.

<a href="https://nam05.safelinks.protection.outlook.com/?url=http%3A%2F%2Fiff.org%2F&amp;data=02%7C01%7Cmroth%40iff.org%7Cf95493c408bd4bd034dc08d7572c7ff8%7Ca456eb4bea7b49a186f2afab0067d887%7C0%7C0%7C637073720953164003&amp;sdata=ItBdtLycyrHg8G96JX81Ag44nQARFwIE4Ka3AW8GFpE%3D&amp;reserved=0">IFF</a> is a mission-driven lender, real estate consultant, and developer that helps communities thrive by creating opportunities for low-income populations and individuals with disabilities. Since 1988, IFF has provided $907 million in flexible, affordable financing to nonprofits serving a variety of sectors — affordable housing, health care, education, community development, and more. These investments have leveraged $2.9 billion and impacted communities by creating more than 6,700 child care slots, 50,000 charter school seats, 369,000 new patient visits, 10,000 units of affordable housing, 2,000 beds at supportive housing agencies, and 66,000 full- or part-time jobs. Learn more at <a href="https://iff.org/">iff.org</a>.

Starbucks invests $10 million in small business in Chicago - Starbucks Stories

Starbucks invests $10 million in small business in Chicago

Starbucks is providing small business and community development loans to bolster economic opportunity in Chicago.

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Mission-driven, nonprofit lenders will use investment to support small business owners, entrepreneurs and community organizations

Kamau Murray always had the vision — an elite tennis academy that would provide opportunities and change trajectories for kids in struggling neighborhoods on the South Side of Chicago. It would be built on the site of the former Robert Taylor Homes, at one point the largest public housing project in America, also notorious for decades of violence and poverty. 

But the more pressing question: where would he get the money?&nbsp; 

Murray approached a relatively unknown and underutilized resource called the Chicago Community Loan Fund (CCLF), part of a nationwide network of mission-driven nonprofit lenders called CDFIs, or community development financial institutions. By federal law, CDFIs were established to financially help underserved communities.&nbsp; 

In 2014, CCLF loaned Murray the first $1.3 million on the project, taught him about new market tax credits (a strategy he hadn’t known about before) and held his hand through the fundraising process. 

What began more than 10 years ago as a scrappy start-up that he ran after work out of a local gym, <a href="https://www.xstennis.org/our-work">Murray’s XS Tennis and Education Foundation</a> last year opened a brand-new $16.9 million indoor multipurpose facility. XS Tennis serves about 3,000 students — subsidizing lessons for about 2,000 of them – and has sent 52 kids to college on scholarships since its inception, about half of them from low-income neighborhoods. Murray, 39, also coaches Sloane Stephens, who won the 2017 U.S. Open Women’s Championship and reached the No. 3 ranking in the world.

The idea for the tennis academy “was a deal that didn’t pencil out (financially), but they were able to see something,” Murray says of CCLF and several other original investors. “They believed in this project. This was not just an idea. This was not a South Side tennis program. This was going to be one of the best places to play tennis, anywhere.” 

Hoping to build on success stories like XS Tennis, Starbucks announced today it will invest $10 million into four different CDFIs in Chicago: Accion Chicago, CCLF, IFF and Local Initiatives Support Corporation (LISC). In turn, these CDFIs will lend the money to small business owners, entrepreneurs and community-based organizations and projects to continue their work revitalizing struggling neighborhoods on the city’s South and West sides. &nbsp;

“We are excited about the impact that this investment will have in many communities in Chicago, but we are also really excited that we can highlight these organizations to potential borrowers,” said Peter Filipovic, Starbucks vice president and global treasurer. 

John Kelly, Starbucks executive vice president for public affairs and social impact, believes this investment “is a perfect example of how we can use our scale for good, to use our resources and our financial success to help others as well. This is something that we believe is actually both going to have a positive social impact and be good for business.” 

The $10 million loan will be distributed around January 2020.

It also aligns with work being done by Chicago Mayor Lori Lightfoot, who since her election earlier this year, has made fostering economic development in neighborhoods on the South and West sides a signature priority. She recently announced <a href="https://www.chicago.gov/city/en/depts/dcd/provdrs/invest_sw.html">Invest South/West</a>, an initiative aimed at helping the neighborhoods that are most critically served by local economic development organizations, including CDFIs.

So how exactly do CDFIs work? And why are they even necessary?

CDFIs emerged in the 1990s in part as a response to long-standing discriminatory practices such as redlining that made it difficult for people in certain zip codes to secure home loans and business capital. 

In general, CDFIs work with projects or people that traditional lenders would consider too risky, or with dollar amounts that are considered too small. They offer coaching, connections, competitive rates, flexibility on loan repayments and a smoother underwriting process. Some CDFIs, for example, have no minimum credit score requirement. The CDFIs operate as part of a network; each has a different niche. 

Accion Chicago, which focuses on neighborhood entrepreneurs and small business owners, funded 418 loans last year, with the average loan size around $9,000. Sometimes, business owners needed money to make payroll on Friday, or buy a piece of equipment like an oven, a truck or a lawnmower. Other times, Accion helped entrepreneurs hire more employees to meet increased demand for their product, or prove they had enough financing to enter into a bigger business relationship, with a downtown hotel developer looking for a subcontractor, for example. 

“We provide capital that is targeted to what entrepreneurs need without overextending them,” says Brad McConnell, CEO of Accion Chicago. “Our belief is that the single most efficient way to create jobs and wealth in the communities that have long been starved of both is to invest in organizations like Accion, who in turn invest in the small business owners who are already there, who are creating that wealth in their community every single day and need assistance to do it more.” 

The Starbucks investment is expected to fund about 500 Accion loans.

CCLF, on the other hand, funds projects around affordable housing, commercial real estate, community facilities (if a nonprofit group needs a roof repair, for example) or social enterprises for local initiatives like getting healthier food into a neighborhood. They give out loans in the $50,000 to $5 million range. 

Several years ago, CCLF gave $500,000 to a developer, who used it to help jumpstart a 5-acre retail project called Englewood Square on a neighborhood lot that had sat vacant for 35 years. The development is anchored by Whole Foods, Chipotle and a Starbucks community store. The impact? The Starbucks Englewood Community Store has created local jobs, offers career skills and training programs for youth and supports diverse contractors. Whole Foods has engaged almost 40 different local small businesses within a 1.5-mile radius of the store. They help provide the store with products like fresh food, baked goods, herbs and cosmetics. 

“CCLF’s predevelopment loan was instrumental in launching that project,” says Bob Tucker, CCLF’s chief operating officer. “We stepped up when others were skittish, filling a gap in the deal.”

&nbsp;The CDFI mission allows them to be more flexible in how they distribute and collect loans.

“Some people who come to us, their financial statements are on napkins in the glove compartment, so we’ll work with them over the course of years where they can get a loan and have financial statements and be able to tell their stories and get up and running,” Tucker says. “There’s no money to be made in that if you’re a bank, but that’s our mission. We’re willing to be patient and work with people like that.”

Juan Calixto, CCLF vice president of external relations, says that for those who get loans, if they need more time to pay it back, CDFIs can provide more flexibility.

“As long as the building goes up, and people are employed, we can wait. We’re not worried about securing our loans right away,” he says. “Our mission is to work with our customers to make sure their vision comes to fruition.” 

Banks can’t do that because traditionally, they’re so heavily regulated. Still, Tucker says the default rate for CCLF loans is about 2 percent. 

CDFIs also offer a responsible alternative to predatory lenders. Many borrowers who go to traditional lenders and get declined for a small business loan might turn to other sources of credit, typically from online lenders promising quick cash but with harsh penalties. Some of those lenders can charge up to 80 percent interest. 

Starbucks has long had a partnership with the city of Chicago. It was home to the first U.S. store outside its home base in Seattle, and the company recently held its biggest-ever employee conference there in September, where 12,000 field managers came together for the Leadership Experience. In November, Starbucks will open its biggest-ever store, the 43,000-square foot Roastery on the Magnificent Mile.

“We only thrive if the community’s thriving,” says Kelly, of Starbucks. “CDFIs are a large part of the Starbucks way of adding to the community and benefiting it. We want to make sure that we are contributing to the community that we’re serving.” 

Investing in Chicago: How $10M Starbucks loan helps underserved areas - Starbucks Stories

Community development gets a boost from Starbucks investment in mission-driven nonprofit lenders.

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