photo: From Left to right: Thurman White, ESO Ventures; Trevor Parham, Oak Stop; Alfredo Mathew, III ESO; Ben Wanzo, ESO Ventures; Martha Hernandez, ESO Ventures; Esther Santamaria, ESO Ventures; Ashley Moreland-Mizzi, ESO Ventures; Steve Hall, LISC; Sascha Brown, ESO Ventures; Zakiya Mackey, ESO Ventures.
Entrepreneurs of Color Fund to help drive inclusive growth and tackle racial wealth gap
Content sponsored by JPMorgan Chase
December 15, 2022 – OAKLAND, CA – The Entrepreneurs of Color Fund (EOCF) program is expanding in Oakland to support diverse-led small businesses and accelerate their opportunities for growth. Through a collective commitment of $2.5 million over two years, JPMorgan Chase and The Rockefeller Foundation are deepening the EOCF’s Bay Area footprint in Oakland, collaborating with Local Initiatives Support Corporation (LISC) and several Community Development Financial Institutions (CDFIs) to help local entrepreneurs of color increase their access to capital, mentorship and technical assistance.
These organizations are working together to support the expansion of the EOCF in Oakland where only 29 percent of all businesses in the Bay Area region are estimated to owned by People of Color, and are more vulnerable to COVID-19 impacts, according to a report by AFN. While the Chase Business Leader Outlook finds optimism on the rise among Black, Latino and Hispanic entrepreneurs about their company’s future, systemic barriers to accessing capital remains a challenge in Oakland and nationwide for minority business owners.
“Small businesses are critical to the health of our economy and we want to provide underserved entrepreneurs with an opportunity to grow and make a difference in the communities where we live and work,” said Tony Tolentino, Vice President, Global Philanthropy, JPMorgan Chase. “Through Entrepreneurs of Color Fund, Oakland small businesses will gain access to another source of capital and expanded technical assistance, contributing to their overall success.”
“Breaking down barriers to access to capital for Black and Latino/a small business owners has the potential of generating almost $300B in new wealth,” said Gregory Johnson, Managing Director of the Economic Equity initiative at The Rockefeller Foundation. “The Entrepreneurs of Color Fund is aiming to have a real impact on Oakland’s communities of color and The Rockefeller Foundation is proud to support this work as a part of our Rockefeller Foundation Opportunity Collective.”
The EOCF was originally launched in Detroit in 2015 with LISC, a network of CDFIs, and JPMorgan Chase, to bridge gaps that have historically constrained growth for diverse-led businesses. The EOCF Oakland will provide additional capacity to CDFI partners ICA, Community Vision Capital and Consulting, ESO Ventures Inc. (ESO), and Pacific Community Ventures (PCV) to support entrepreneurs of color in Oakland and throughout Alameda and Contra Costa counties.
“Strong communities need a diverse small business ecosystem that fuels local income and supports a good quality of life for residents,” noted Steve Hall, Vice President at LISC. “EOCF helps bridge the unfair capital gap that entrepreneurs of color have long faced so they have the chance to build wealth, create jobs and contribute to the kind of vibrant economic infrastructure that positively impacts everything from housing to health.”
Through the EOCF Oakland, LISC, ICA, Community Vision Capital and Consulting, ESO and PCV will provide investments and loans to small and mid-size businesses that can be used to hire staff, buy equipment or vehicles, pay for renovations, or stock up on inventory. Beyond providing capital, the CDFIs will also provide technical assistance and advice on a range of topics including marketing, merchandising, accounting, website design and maintenance, or licensing.
“At ICA we know that entrepreneurs have the power to transform communities and drive wealth-building opportunities. That’s why we’re thrilled to grow our collaboration with JPMorgan Chase and the ecosystem of partners to deploy investments from the Entrepreneurs of Color Fund to the many incredible Oakland founders in the ICA network,” said Allison Kelly, Chief Executive Officer of ICA. “Funds specifically designated for People of Color-owned businesses are essential for overcoming systemic barriers and building an economy that works for all.”
“The capital we received through ICA and the Entrepreneurs of Color Fund Bay Area, was essential for helping grow Don Bugito, from opening a new farm to making critical hires,” said Monica Martinez, Founder and CEO of Don Bugito. “I look forward to seeing what the Entrepreneurs of Color Fund can do for our incredible ecosystem of small business in Oakland now too.”
To date, the EOCF has provided more than 2,100 loans and deployed more than $115 million in capital to Black, Latino, Hispanic and other underserved entrepreneurs in major areas such as the Bay Area, Los Angeles, Detroit, Atlanta, New York City, Chicago, Washington, D.C, and Newark.
