a Newly announced $5.3 million grant expected to significantly expand access to small business credit among historically underserved entrepreneurs in Kansas City said Philip Gaskin, detailing the latest in this week’s series of funding awards from the Ewing Marion Kaufman Foundation.
dream springa nationally recognized non-profit Community Development Finance Institution (CDFI), will receive $5 million in capital over the next five years to support low-income, destitute and small-to-medium-sized within the Census of the Kansas City metropolitan area. A tract that is continuously recycled as a loan to a business.
click here Learn more about DreamSpring’s Kansas City initiative, which began on an online platform in 2009. CDFI is now hiring community lenders in Kansas City to reach out to more entrepreneurs.
Gaskin, Vice President of Entrepreneurship at the Kaufman Foundation, said: “This additional funding will support his 8,000+ small businesses in our community through alternative financing solutions. We are thrilled to have our national microlender expertise available here in Kansas City.”
The capitalized award will be combined with $300,000 for additional funding to support activities related to the deployment of the funds. This includes the creation of his DreamSpring Lending and Community Engagement role in Kansas City to provide personalized, on-the-ground service and support to entrepreneurs and partner organizations.
Editor’s Note: The Ewing Marion Kaufman Foundation is a financial supporter of Startland News.
According to the Aspen Institute FIELD program’s 2017 US Microenterprise Census, DreamSpring is one of the top 5 microlenders in the United States by volume of loans, with a typical annual personal loan amount averaging $13,500.
The subsidy is Kauffman Foundation Direct Capitalization Loan Fund, seeks to expand the lending pool available to small businesses and promote better access to capital for uninvested communities. Today, the existing pool of capital supports only a fraction of the capital needs of Kansas City’s small businesses, especially those led by historically marginalized entrepreneurs, according to the Kauffman Foundation.
RELATED: Kaufman Fund Helps Holy Rosalie Pilot New Lending Model to Promote Equitable Access to Capital
Edmund Johnson, President of Denver-based Premier Manufacturing, said: He is Chairman Emeritus of the Board of Directors of the Federal Reserve Bank of Kansas City and Chairman of the Board of DreamSpring.
“During my tenure as chairman of the Kansas City Federal Reserve, economic inequality became a focal point for the Federal Reserve to attempt to mitigate.” We are very pleased that our leader, the Ewing Marion Kaufman Foundation, has engaged in this meaningful partnership to make a profound impact on underserved small business owners in our communities. .”
Kaufman estimates that in 2021, Kansas City business owners will have only 7%, or less than $10 million, of the $134 million in required lending capacity from loans totaling $50,000 or less. . With new Kauffman Foundation funding, DreamSpring will provide his $140 million microloan capital to his 8,103 small business owners to reduce financial barriers and create economic opportunities in Kansas City and Hartland. is estimated to expand.
Anne Haines, President and CEO of DreamSpring, said: “Ewing Her Marion Her partnership with the Kauffman Foundation will help narrow the capacity her gap, bring leveraged capital to create jobs, and help entrepreneurs, their families, and entire communities within metropolitan Kansas City. will have a transformative impact on