Model and Strategy
Mission Asset Fund’s (MAF's) $1M COVID Small Business Innovation Fund is a lifeline for small business owners of color to weather the current crisis. Providing direct cash assistance, individual support, and affordable credit to small business owners will give them the resources they need to rebuild and reinvent in the new COVID reality.
The SB Innovation Fund will add on the more than $30M already disbursed to those hardest hit, by providing zero interest, credit building, small dollar loans directly to small business owners. Loan terms give entrepreneurs breathing room: borrowers can take out up to $2,500 over a max 24-month term, with payments delayed for 6 months. All loans are paired with 1:1 financial coaching and technical assistance, providing people with the human connection needed in this time of distancing and isolation. We ensure these programs are local and accessible by working with a network of 70+ nonprofit partners across the U.S. to identify and reach micro-entrepreneurs, family-run businesses, and hard-working visionaries who need capital to reinvent and persevere through this crisis.
Impact
MAF’s $1M COVID Small Business Innovation Fund will put resources directly into the hands of micro-entrepreneurs and small business owners of color, empowering them with capital and personalized support to adapt to the new COVID reality. Flexible loans, paired with 1:1 technical assistance and tech-based tools, is enabling small business owners to grow, evolve, and innovate during this pandemic. We’re pushing back against the tide of closed shops and shuttered businesses among entrepreneurs and leaders of color by making sure they have access to the financial tools and resources they need today.
The program is not only helping small business owners adapt to today’s changing reality, but it’s also creating a strong foundation for these entrepreneurs and businesses to thrive for years to come. In today’s world, a credit score is like a key to the whole system: banks and other lenders base their decisions on credit scores and credit reports. At MAF, nearly 90% of borrowers who do not have a credit score when they take out a loan establish one by the end of the program. Moreover, nearly 80% of clients complete their loan program with prime or near-prime credit, setting them up to access larger loans in the future at more affordable rates. In doing so, the program helps small business owners and entrepreneurs strengthen their foothold in the mainstream financial system and broaden access to the information and resources they need to thrive.
Leadership
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José Quiñonez
Founder & CEO
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Elena Fairley
Programs Director