Mobilizing High Net Worth Capital to Grow Black Wealth Locally
, /PRNewswire/ — The New Impact Fund – founded to connect BIPOC, particularly Black entrepreneurs in Twin Cities neighborhoods, with the financial and social capital needed to grow and sustain their businesses – has announced that three Black-owned Businesses – Next Level Logistics, Taylor’d Skin & Esthetics Bar, and Lip Esteem – have received small business financing from the Fund.
Many talented local Black business owners who want to grow their businesses cannot secure the financial capital they need to start or expand their businesses. Many of these entrepreneurs turn to high-interest rate, predatory loans, making it nearly impossible to become profitable.
“While the Twin Cities region enjoys a rich ecosystem of capital providers, BIPOC business owners face inequitable access to financial capital,” said Alicia Phillips, CEO of the New Impact Fund. “Small businesses are the engines of local economic growth; they invest, hire, and buy local. Yet Black entrepreneurs experience structural barriers to the capital they need to start and continually grow their businesses.”
“The New Impact Fund’s investment in 2021 was the lowest-cost capital we’ve ever received. It allowed us to grow from 36 employees to 48 middle-class union jobs, where 60% of the wages directly supported BIPOC homes,” said Calvin Littlejohn, Co-Founder and CEO of Tri-Construction.
Other financial recipients from the Fund include:
Next Level Logistics – A Black-owned transportation company providing general freight, refrigerated freight, dry bulk, and liquid bulk transportation services throughout the United States.
Taylor’d Skin & Esthetics Bar – An established esthetician day spa on the Northside of Minneapolis, planning to build a premier, nationally recognized beauty school.
Lip Esteem – A plant-based, gluten-free beauty product line that includes lipstick, gels, liners, and glosses in over 25 unique shades to compliment women’s various skin tones and lip profiles.
About the New Impact Fund:
The New Impact Fund (NIF), established in 2014, was founded to connect BIPOC, particularly Black entrepreneurs in Twin Cities neighborhoods, with the financial and social capital needed to grow and sustain their businesses. NIF advances this mission by mobilizing an untapped resource – High Net Worth Individuals (HNWI) – who come together in 10-12 person cohorts and contribute financial resources to an evergreen loan fund. Each cohort deploys highly flexible, low-cost capital through a guided learning process to support BIPOC businesses. Financial capital from individuals is the most flexible form of capital in our local lending ecosystem; NIF enhances this already-rich ecosystem by infusing flexible and patient financial capital and generative social capital, all aimed at driving the success of Black entrepreneurship and prosperity.
NIF is grateful to its individual philanthropic investors and foundations for their support and trust: Including the McKnight Foundation, Otto Bremer Trust, The Venn Foundation, Old National Bank, Tradition Bank, Sunrise Bank and Wellington Management for their support.
For more information:
Alicia Phillips, CEO
New Impact Fund
SOURCE New Impact Fund