$5 million investment helps connect small businesses with financing and education
As Laura Mitchell of Luxury Cake Company in Chicago prepared to expand
her small business, she faced a less-than-sweet dilemma: Business was
growing, but taking on larger clients required a substantial financial
investment in a professional grade oven and refrigerator.
Mitchell secured a $7,500 small business loan from Fifth Third Bank and
a community partner, enabling her to expand her service offerings and
build a showroom for cake tastings and demonstrations.
“You can do the hard work, but at a certain point, you need some help.
It doesn’t take a million dollars to make your dreams a reality,” she
said. “For businesses like mine, a small loan is all it takes to
maximize growth.”
But a success story like Mitchell’s isn’t always the result of a loan
application. In fact, U.S. Small Business Administration data shows that
only a fraction of small business loans went to minority- (26 percent)
or women-owned businesses (18 percent) in 2017.
This Small Business Week, Fifth Third is taking a stand against this
lending gap with a $5 million investment to the nonprofit Community
Reinvestment Fund, USA (CRF). The partnership expands access to
capital for small businesses in major markets across the U.S., including
Cincinnati, Chicago, Cleveland, Detroit, Indianapolis, Tampa, Orlando
and Charlotte. CRF works with community partners to improve access to
capital for small businesses in underserved communities as well as those
owned by women and minorities.
“Entrepreneurs like Laura Mitchell help our cities thrive,” said Kala
Gibson, head of business banking for Fifth Third. “We have a long way to
go to close the lending gap entirely, but this investment will help a
more diverse range of small businesses reach their full potential, add
jobs and give back to the communities that support them.”
In addition to expanding the responsible lending options available to
small business owners, the $5 million investment will help small
business owners make informed lending decisions using tools like CRF’s
new platform, Connect2Capital, a “one-stop shop” for comparing a broad
range of responsible and transparent loan options.
Many of the community partners will also:
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Educate current and prospective entrepreneurs on critical financial
management skills, including cash flow analysis, credit management,
loan applications and more.
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Connect business owners with local opportunities for continued
education, including hands-on workshops, classes and webinars on
topics ranging from credit repair, financial management and building a
better business plan.
According to Gibson, the multimillion-dollar investment is part of the
regional bank’s strategic plan to increase access to traditional
funding, an effort that has made notable strides in recent years. The
Bank has pledged $10 billion to small business loans through 2020 as
part of its Community Commitment. The Bank has earned recognition from
Greenwich Associates as one of the “best brands” in small business
banking and from the State Small Business Credit Initiative as the
largest lender by dollar amount.
“Whether we’re working with a one-person startup or a corporation that
brings in more than $20 million a year, one of the most rewarding parts
of our job is helping a business find the funding to reach its full
potential,” Gibson said. “We are invested in them. When they grow, we
grow, and we celebrate together.”
For business owners like Laura Mitchell, it’s that level of individual
investment that helps dreams grow into an even sweeter reality.
About Fifth Third
Fifth Third Bancorp is a diversified financial services company
headquartered in Cincinnati, Ohio. As of March 31, 2018, the Company had
$142 billion in assets and operated 1,153 full-service Banking Centers
and 2,459 ATMs with Fifth Third branding in Ohio, Kentucky, Indiana,
Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia and North
Carolina. In total, Fifth Third provides its customers with access to
more than 54,000 fee-free ATMs across the United States. Fifth Third
operates four main businesses: Commercial Banking, Branch Banking,
Consumer Lending and Wealth & Asset Management. Fifth Third is among the
largest money managers in the Midwest and, as of March 31, 2018, had
$363 billion in assets under care, of which it managed $37 billion for
individuals, corporations and not-for-profit organizations through its
Trust and Registered Investment Advisory businesses. Investor
information and press
releases can be viewed at www.53.com.
Fifth Third’s common stock is traded on the Nasdaq® Global Select Market
under the symbol “FITB.” Fifth Third Bank was established in 1858.
Member FDIC.
About Community Reinvestment Fund, USA (CRF)
Founded in 1988, Community Reinvestment Fund, USA (CRF) is a national
non-profit organization with a mission to empower people to improve
their lives and strengthen their communities through innovative
financial solutions. A leading Community Development Financial
Institution (CDFI), CRF supports mission-driven organizations through
the development of products and services aimed at increasing the flow of
capital to historically underinvested communities across the country.
CRF has injected more than $2.4 billion to help stimulate job creation
and economic development, provide affordable housing, and support
community facilities. For more information, visit www.crfusa.com
Fifth Third Bancorp
Laura Trujillo, 513-534-NEWS