Acis Group’s Post

Today, Foundry Collective CEO Brad Attig had the opportunity to present to the Oregon SBDC Capital Access team. The topic was Kiva Oregon. A big thank you to Noah Brockman for making this happen. If you don’t know about the “CAT” team, we encourage you to check them out — 75% of small businesses working with the CAT team successfully fund, and since 2011, the CAT team has served almost 3000 small businesses. https://lnkd.in/gEwaNbnN About Kiva U.S. and Kiva Oregon In February 2024, Foundry Collective became the first rural-based Kiva Hub in the United States. The hub includes over 1,000,000 rural Oregon residents residing in over 265 zip codes. Through the Kiva U.S. program, Kiva offers 0% interest, no fee, no collateral, crowdfunded loans up to $15,000. A 2024 report by impact measurement company 60 Decibels highlights Kiva’s impact in making finance more accessible in the U.S. The results show that Kiva U.S. is facilitating first-time access to capital, making it easier for entrepreneurs to access additional funding, and fostering confidence and financial stability for marginalized communities in the U.S. Approximately 26 million adults in the U.S. (nearly 10%) are “credit invisible,” meaning they do not have enough credit history to produce a credit score. Furthermore, 1 in 4 U.S. adults are underbanked, meaning they have limited access to financial services, and 1 in 10 are unbanked, meaning they do not have a bank account at all. Kiva Oregon is helping change that trajectory in our rural communities. https://lnkd.in/gT2Sydv3 Requiring no high credit scores, collateral, or audited business financials, Kiva U.S. is at the bottom of the capital ladder and ideally suited for borrowers starting or building their credibility. 68% of borrowers are women, 71% are minorities, 60% have been rejected for credit, and 58% have credit scores below 650. Kiva Oregon is off to a fantastic start, having helped 19 small business entrepreneurs raise $152,000 in loans. 72% of borrowers are female and 33% BIPOC. 43% of the businesses are startups or have been in business for less than 1 year, and 34% are existing businesses with over 1 year of operations. Seven funded businesses also completed a CO.STARTERS by FINSYNC program designed to help small business “starters.” For 2025, Foundry Collective and Kiva Oregon will grow the pool of borrowers to help achieve 65 funded loans for $500,000. Additional goals include expanding the number of Kiva Trustees in Oregon to 5 and securing 3 Managed Lending programs. These programs match borrowers' funds and help leverage individual lenders' contributions. Services are available in English and Spanish. https://kivaoregon.org/ Thank you to Business Oregon, Umpqua Bank, and The Ford Family Foundation for supporting Kiva Oregon.

If a city gets a windfall of money, like St. Louis did with the Rams Settlement, how can it maximize the impact of the money? The paper I have attached gives more detail but here is the quick summary: The city needs to use their money to attract more money. Even better, is if it can attract money that then attracts more money. Sounds easier said than done, right? Well, here is how to accomplish this: In simple terms, money (of the non-charitable variety) is drawn to risk-adjusted reward. If a city has projects they want to spend money on (but don't have enough of their own), think of them in these terms. For the reward, what is the economic benefit (specifically cash flow) that can be generated from the project. For the risk, how can you lower the risk of loss in an investment? I will focus for the moment on reinvestment in real estate, but with creativity, you can do this with things like infrastructure, as well. As an example, let's consider the "rehabilitation of decayed, high-impact buildings." In St. Louis' case, they have received a commitment for a $100 million match from the private sector for these type of high-impact redevelopments. Here is one way to make the most of that match: First, go back to the private sector, and ask that half of the $100 million be a commitment that flows into an escrow fund annually. That money will be joined with $50 million from the Rams Fund. Together, this money will act as a reserve for an annual debt service payment made on bonds issued based on this cash flow. Here is how it works: with the $100 million combined commitment, the city issues a bond for $1 billion. The city then uses that money to invest in real estate projects which will generate a financial return (cash flow). The cash flow will be used to repay the debt service on the bond. However, the money from the public/private fund will serve to repay portions of the debt service if the cash flows fall short. This lowers the risk - securing a lower interest rate on the bonds. The city and private sectors then agree to add additional funds in any given year where the fund was utilized to cover debt service. For example, if there was a $1 million shortfall, and the reserve fund was reduced to $99 million, the two would contribute an additional $1 million for the following year, to bring it back to the original amount. In this way, the city and private sector create an insurance fund to cover any shortfall in the cashflow from investments made using the bond proceeds. It is this guarantee which enables the bond to be marketable, allowing the city to raise the $1 billion investment amount. This then enables the city to achieve a far greater impact with their investment. Greater St. Louis, Inc. Jason Hall Michael Browning Shane Cohn Shameem Clark Hubbard Pam Boyd Thomas R Oldenburg Bret Narayan Alisha Sonnier Cara Spencer Rasheen Aldridge Jr Cristina Garmendia L. Jared Boyd Christine Stroer Ingrassia Neal Richardson, MBA

BIG NEWS: BlueHub Loan Fund successfully secured $86.8 million in Sustainability Bonds through its second public debt offering! Rated ‘A+’ by S&P Global Ratings, the bonds provide critical scale capital that enable the Loan Fund to meet borrower credit demand and maximize impact across the communities it serves. The bonds were issued in two tranches, a $60.5 million Series A municipal taxable bond, and a $26.3 million Series B municipal tax-exempt bond—the first ever issued by a CDFI. The Series A taxable bond proceeds will be used to fund community development projects that support low-income areas. The Series B tax-exempt bond proceeds will provide long-term financing to existing public charter school borrowers within BlueHub Loan Fund’s portfolio. This innovative “forever financing” product will help these schools stabilize facility costs for up to 20 years, while enabling our credit rating and balance sheet to deliver cost-saving interest rates and fill a gap in the marketplace. This tax-exempt bond sale is impactful not only for the continued development of the CDFI sector in capital markets but also for diversifying the lending products that CDFIs can offer to borrowers. Thank you to our partners Morgan Stanley and Momentus Securities for their expertise and collaboration. BlueHub continues to push the boundaries of community finance to find new ways to meet the needs of the neighborhoods we serve. Learn more about our bond issuance and how it will drive positive outcomes: https://lnkd.in/eFBZptmV #BlueHub #SustainabilityBonds #CommunityDevelopment #EconomicOpportunity #ImpactInvestment #CDFI #InclusiveEconomy #AffordableHousing #FinancialInclusion

For all of our #HBCU #entrepreneur friends in #Louisiana #CheckThisOut Excerpt: "LED, via the Louisiana Economic Development Corporation (LEDC), will work with private equity funds and financial institutions to disburse SSBCI funds via equity, micro lending, collateral support and loan guaranty programs. The loan programs make it easier for businesses to borrow money by providing collateral support to borrowers, loan guarantees to lenders, and funding for micro loans. Equity programs connect start-ups, early-stage and expanding small businesses with funds to invest in the business. Disbursement of the full amount is dependent on hitting federal funding benchmarks for very small businesses (VSBs) with fewer than 10 and no more than 499 employees and businesses owned by socially and economically disadvantaged individuals (SEDIs) whose access to capital may have been limited in the past." For full text click below >> https://lnkd.in/dzxdE4GU

UNTIL DEBT TEAR US APART. The most disputed value in Happipreneurship is "Avoid Debt". Many famous entrepreneurs like Donald Trump thrive on debt. Most debt-laden entrepreneurs are not happy in their enterprise at least 80% of the time. Our happy photo was taken after rehearsals for our 'Be More Happipreneur' Show. All of us have started and run our businesses. Yorkshire in Business paid for our fabulous Turkish meal with refreshments. We'd rehearsed at YIB offices. I remember when I used to rehearse shows in damp community halls, and a soggy cheese and onion sarnie was a luxury. For me, a day like this, with entrepreneurial friends, is heaven in a box. Thanks to Jenn Crowther, Yorkshire in Business is debt-free and uses its profits to provide free start-up advice throughout the Yorkshire Coast. This aligns with another Happipreneur value: "Be Useful." YIB will borrow again; there's always another venture, but we pay little interest and know we can repay it. I love debt-free. I remember paying off my home mortgage 25 years ago as a turning point in our ability to control our destiny. Once, when the bank 'asked' us to turn our overdraft into a loan, we said 'No' and negotiated half the overdraft amount for six months. By-bye banker! My thirty years of campaigning (#PayIn30Days or less) against UNFAIR 45 to120 days payment terms from the largest companies in the UK is that the £30 billion cashflow log-jam leads to debt from borrowing and credit cards for over 5 million self-employed and micro business owners. Debt leads to depression. The world is selling you debt to achieve your dreams thousands of times daily. The world implores you to do whatever it takes to grow when reducing costs, including debt, can make you happier. It's why Happipreneurs at #startup 'Bootstrap don't borrow' and 'test trade first' (preferably while they have other income coming in).. Of course, we all borrow, even if it's just credit cards, but don't borrow unless you know that you can pay it back from customer revenues. The largest companies, investors, and institutions in the world, including governments, make the most money from other people's debt and depression. The Happipreneur method of starting a business is at least two thousand years old, and it works for happiness and long-term survival. 80% of those starting a business the Happipreneur way will survive over three years, compared to only 10% in Silicon Valley. Until the 20th century, whatever size of business you ran, even a bank, would not keep you out of the debtors' prison. So, I don't care that Donald Trump and many celebrity millionaires look happy when they are in massive debt all their lives. A few - 0.1% - succeed like this. Money worries strangle happiness and enterprise. Even government-backed student and #startup loans can hold you back from a happy and enterprising life. Avoid debt (as much as you can). Be More #Happipreneur. .

Debt leads to depression. Tony Robinson OBE provides excellent insight and advice into the reality of growing a business via loans and or debt. It is very hard these days to avoid the push, the relentless push, to #scaleup etc etc . Now it works for some but those few people g know exactly what they are getting into and what it involves . We are awash these days with" investment opportunities". Investment opportunity is a dubious term if ever there was as it masks precisely what is involved . I surveyed the offerings a while ago and noted that the push to "grow your business" came from people who sat behind a desk on a salary and with paid holidays and zero risk to themselves. So read this really important post and think before going for loans and debt. Think about not the el Dorado promised but the reality of servicing that debt. And what that means for your #mentalhealth and #wellbeing

Investment Fund for Wales Announces £95,000 Smaller Loans for Three Businesses https://ift.tt/NopQhw7 The first smaller loan deals from the British Business Bank’s £130m Investment Fund for Wales have been unveiled. The inaugural three deals from the Smaller Loans fund, managed by appointed fund managers BCRS, add up to a total of £95,000. The Investment Fund for Wales was launched by the Government-backed British Business Bank in November 2023 to boost the supply of early-stage finance to small and medium-sized businesses across Wales. The Fund offers a range of commercial finance options, with smaller loans from £25,000 to £100,000, debt finance from £100,000 to £2 million and equity investment up to £5 million. The first small loans are a £40,000 loan to Wrexham-based Wynnstay Self Storage, £30,000 to Blackwood-based photonics specialist manufacturer Bluebox Optics, and £25,000 to takeaway Metro Eatery Ltd in the Vale of Glamorgan. Wynnstay Self Storage was previously a family-run sawmill, set up in 1984 by Geoff Pritchard. Geoff’s son, Matt, joined the sawmill business in 1999 and opened a bespoke joinery workshop. Matt inherited the business when Geoff passed away in 2016. Rising costs meant the firm was importing more and more timber and after a year at the helm Matt decided to diversify into self-storage to make use of the land. He invested in six shipping containers and after conversations with a friend who had nowhere to store his caravan off-season Matt also now offers parking plots. Matt said: “Our success has all been down to word of mouth and we are consistently full to capacity. This injection of investment will enable me to purchase a further 10 shipping containers and to develop the infrastructure to increase the size of the business in order that our land is more efficiently utilised. I also plan on rebuilding my existing workshop into one that is more fit for purpose.” Blackwood-based Bluebox Optics is a photonics specialist manufacturer which develops LED light sources for fluorescence microscopy for use within the health and medical sectors. They will use their £30,000 IFW loan as growth capital to help to bring to market a product range of LED medical light engine systems, which include systems for not only fluorescence microscopy but also endoscopy and to replace lamp systems with LEDs for microscopy. It also features associated optical fibre, meaning that surgeons are able to see more on clinical monitors used during keyhole surgery. Bluebox Optics CEO Ron Yandle said: “We have worked extensively with universities on medical device research projects and this loan will enable us to develop discussions we’ve had with Imperial College London on developing a LED light engine and camera system to help make breast cancer reconstruction surgery more efficient. “Getting finance to develop, rather than produce, a device within the field of medical technology can be challenging. “BCRS and the Investment Fund for...

Did you know that your home can be more than just a place to live? With a Home Equity Line of Credit (HELOC), you can tap into your home's value to achieve a variety of goals! Here are a few ways you can use a HELOC: 1. Home Improvements: Upgrade your kitchen, add a new bathroom, or create that perfect outdoor space you've always dreamed of. 2. Debt Consolidation: Simplify your finances by consolidating high-interest debts into one manageable payment. 3. Education Expenses: Invest in your future or your children's education without the stress of high-interest student loans. 4. Emergency Fund: Have peace of mind knowing you have a financial cushion for unexpected expenses. 5. Business Ventures: Kickstart your entrepreneurial journey with the capital you need to grow your business. A HELOC offers flexibility and often comes with lower interest rates compared to other types of loans. Plus, you only pay interest on the amount you use! Your home is a valuable asset—why not make the most of it? Feel free to reach out to me if you are in need of HELOC! #HomeEquity #HELOC #FinancialFreedom #SmartInvesting #HomeImprovement

Study reveals top reasons people choose second charge mortgages Around 13% of people in the UK would consider using a second charge mortgage to fund education expenses, with the figure rising to 23% among Londoners, the latest Pepper Money Specialist Lending Study has found. According to the research, 51% of Brits see second charge mortgages as an option for financing home improvements, while 30% would use them for debt consolidation – traditionally the two most common reasons for this type of borrowing. Other purposes cited include helping family members with home deposits (19%), raising funds for a deposit on an additional property (16%), and investing in a business (16%). 

Looking forward to this 'Financing your business if a bank can't lend' webinar, as part of British Business Bank's Business Finance Week 2024! Find out why more small businesses across industries choose community development finance institutions (#CDFIs) to access finance & support!! 📅 Tuesday, 1st October 2024 ⏰ 1.00pm - 2.15pm 📍 Online The UK’s not-for-profit community development lenders (#CDFIs, community development finance institutions) support viable businesses and social enterprises which are unable to access the finance they need from banks and other sources. Their impact has been praised by businesses, organisations which represent them, advisors and politicians across parties. Last year they lent £102m (a 26% increase on 2022) to 4,546 small businesses and startups. 👉 99% of the businesses which borrowed from #CDFIs in 2023 had previously been declined by another lender 👉 98% of the businesses supported were based outside London 👉 41% of #CDFI business loans were made to women-led start-ups and businesses 👉 24% of #CDFI business loans were made to ethnic minority-led start-ups and businesses Could CDFIs help your business? This webinar will enable you to learn what CDFIs do and explore whether they could help your business to achieve its ambitions. British Business Bank Sean Hutchinson Responsible Finance Theodora Hadjimichael BCRS Business Loans Stephen Deakin Let's Do Business Group Lisa Young Business Enterprise Fund (BEF) Stephen Waud British Business Bank Midlands Vicky Mears D2N2 Growth Hub Business Lincolnshire Business Gateway Growth Hub South Midlands Growth Hub East Midlands Combined County Authority Greater Lincolnshire LEP Leicester and Leicestershire Business and Skills Partnership Midlands Engine East Midlands Chamber (Derbyshire, Leicestershire, Nottinghamshire) Lincolnshire Chamber of Commerce Northamptonshire Chamber of Commerce Milton Keynes Chamber of Commerce Bedfordshire Chamber of Commerce NBV Enterprise Solutions Ltd Wenta Business Support First Enterprise - Enterprise Loans https://lnkd.in/eZ3pdWDR