MBDA Grant

This funding will allow participating organizations to make critical investments in lending staff knowledge, operational efficiency, and IT/software performance with the goal of increasing their ability to better meet the capital needs of underserved MBEs in their local communities. Moreover, each organization will become certified to access the NALCAB SBLG, providing a market-based solution to community small business lending needs by allowing lenders to take credit risk more confidently, particularly when potential MBE borrowers have limited collateral or when the value of their collateral has been downgraded because of market conditions.

• Dorchester Bay Economic Development Corporation-Boston, MA
• Hispanic Economic Development Corporation-Kansas City, MO
• Hispanic Interest Coalition of Alabama-Birmingham, AL
• La Fuerza Unida CDC-East Norwich, NY
• Latino Economic Development Center-Washington, DC
• TMC Community Capital-Oakland, CA

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Based in Washington DC and serving DC Metro, Baltimore Metro, rural Maryland, and Puerto Rico, LEDC provides a range of capital options to a majority MBE clientele. During the reporting period, LEDC received a $35,000 MBDA subgrant and secured six (6) SBLG guarantees with a 7th pending. All loans went, or will go, to MBEs. Among these loans was $72,000 to a Hispanic/woman-owned title company operating in an East Baltimore neighborhood with a majority minority population and poverty rates 9% higher than the US rate. NALCAB guaranteed $10,000 (14%) of the loan. Funds helped the business to retain two full-time employees and expand their physical footprint, increasing space for customer service activity and creating a more comfortable waiting room. Another $40,000 loan went to a Hispanic family-owned retail shop in Bayamon, Puerto Rico that vends products made of quality cork to local tourists and through online sales worldwide. NALCAB guaranteed $10,000 (25%) of the loan. Funds will help the business retain one full-time employee, create a new part-time position, and facilitated the purchase of additional inventory ahead of the 2022 Christmas season, allowing the business to maximize its sales potential. Situated on the outskirts of San Juan, an area devastated by Hurricane Maria in 2017, Bayamon has a Median Household Income of $28,116 and a poverty rate of over 33%.

NALCAB provided LEDC with TA in Fall 2022 to adopt a new Strategic Plan that includes expansion of lending programming and associated products. As an MBDA subgrantee, LEDC will continue to access the SBLG and receive NALCAB TA to implement an Action Plan that 1) supports deployment of additional small business loans in their service area, 2) improves their capacity to receive/analyze client information digitally while also enhancing their ability to compete with online lenders by purchasing advanced income-verification technology, and, 3) explores the feasibility for launch of new financial products including equity investments.

Based in Oakland with a satellite office in Los Angeles, TMCCC provides access to loans for small businesses, predominantly MBE-owned, throughout the state of California, in both rural and urban areas. During the reporting period, TMCCC received a $35,000 MBDA subgrant and secured four (4) SBLG guarantees, with two (2) others pending approval. Five (5) of the secured or pending loans will go to MBEs, with the 6th going to a woman-owned, non-MBE. Among these loans was $15,000 to a Hispanic woman-owned window tinting company in Richmond, California. NALCAB guaranteed $7,500 (50%) of the loan. Funds allowed the business to begin providing ceramic coatings and paint protection options, expanding their menu of services, and improving market competitiveness. Located within the comparatively wealthy Contra Costa County, Richmond is a majority minority community with a poverty rate (13%) more than double the county rate (5%) and a Median Household Income over $30,700 less than the county’s median income ($110,595).

As a subgrantee, TMCCC will continue accessing the SBLG and receive NALCAB technical assistance to carry out an Action Plan that improves integration between their Customer Relationship Management (CRM) system, loan intake and loan servicing software. This will include development of a targeted set of higher-level metrics (beyond common demographics) that contain data valuable to both their lending and impact reporting teams, and which can be collected at all touchpoints along their loan process, whether the applicant was ultimately approved for funding or not. The end goal is to better understand target client socio-economic needs and shape both TMCCC service delivery and products to meet those needs.