Microlending and Technical Assistance to underserved and underrepresented Microenterprises
First Community Capital believes providing equitable access to capital and other financial services can make it possible for low-income entrepreneurs to be able to start or grow their business. We often lend to borrowers that may not meet mainstream institution’s underwriting criteria, helping to bridge the gap between conventional lending standards and the needs of hard-to-reach borrowers, including the following:
Minority-Owned Business Loans
Minority-owned businesses are growing at a faster pace than overall U.S. businesses. Minority entrepreneurs owned 8 million or 29% of the nation’s nearly 27.6 million businesses as of 2012, up from 5.8 million in 2007 according to U.S. Census Bureau data.
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However, securing financing can be a challenge for minorities. According to the Federal Minority Business Development Agency, minority entrepreneurs may have lower credit scores and fewer assets to secure loans than other business owners. As a CDFI lender, First Community Capital (FCC) was established to bridge that gap, by providing affordable financing opportunities and holistic business counseling specifically geared toward minorities and entrepreneurs who don’t often qualify for traditional lending. FCC proudly provides alternative financing options in such cases.
Women-Owned Business Loans
Women are starting businesses in increasing numbers, but research suggests access to affordable capital is becoming increasingly difficult for women-owned businesses when compared to their male counterparts. According to a study conducted in 2014 by the National Women’s Business Council, men-owned firms start with nearly double the capital women-owned firms do, and women-owned firms only get about 6% of the outside equity that male-owned firms do on average.
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Our mission at First Community Capital is to remove these and other barriers that prevent women-owned businesses from equally accessing capital and other financial services for their new or existing business. FCC is committed to working with women entrepreneurs, and to assist in finding the best options for their businesses, namely lower borrowing costs and favorable loan terms and conditions.
Rural Entrepreneurs Loans
Studies have shown that counties in rural areas were more heavily impacted during the economic crises of 2008 when most small businesses were forced to close. It is no surprise that rural areas suffer more significantly during an economic crisis since most have a high unemployment rate and often low access to capital and other financial services.
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In such instances, rural entrepreneurs and farmworkers lack the ability to fund their new ideas or to further support their existing business. At First Community Capital our loan program was established to improve the economic and environmental climate in rural communities through the development, improvement, and financing of small businesses that create and preserve jobs in rural areas.
Veteran-Owned Business Loans
Research indicates that Veteran entrepreneurs own 7.5% of the nation’s 5.4 million businesses having employees. Unfortunately, these veterans struggle to get the funding they need to start or scale their business purely due to financial gaps as a result of their time deployed or on active duty.
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First Community Capital understands and appreciates the sacrifice of the brave men and women that serve and protect our great nation in the armed forces. Every military family should be respected for risking their lives to preserve and protect us all. At First Community Capital our commitment is to the service of our veterans, and we work to ensure they receive the necessary funding and technical assistance to start-up or support existing business.
Immigrant and Refugee-Owned Business Loans
The United States is still the most sought-after country for refugees or immigrants fleeing persecution or simply looking for economic opportunities to improve the quality of life for their children and families. In 2015, 70,000 refugees came to the United States. Of those coming to America for a new beginning, many demonstrate incredible skill sets and a strong desire to establish their own business.
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Unfortunately, it is almost impossible for newly arrived refugees to start a small business, due to a lack of capital and the inability to borrow from financial institutions. Barriers to these entrepreneurs are typically: language and cultural misunderstandings, lack of credit history and/or an unacceptable credit score, lack of business experience in the United States, lack of collateral, and lack of personal equity to invest in the business. For these reasons, immigrants and refugees are often considered high risk and not bankable to financial institutions.
Uniquely, First Community Capital is equipped with highly experienced personnel that can directly relate to the stories of immigrants and refugees. Under the FCC loan program, the following objectives are carried out:
1) Assist refugees to establish microenterprise businesses
2) Assist refugees in developing a credit history and/ or building their credit scores.
The overall purpose of the FCC Refugee loan program is to assist refugees to develop, expand, or maintain their own businesses and become financially independent.
Prisoner Reentry Program
The goal of which is to ensure a safe and successful return to the community through Technical Assistant and Business Counselling. Each year, more than 700,000 people are released from state and federal prisons, while another 9 million cycle through local jails. Statistics indicate that more than two-thirds of state prisoners are rearrested within three years of their release and half are re-incarcerated. High rates of recidivism mean more crime, more victims, and more pressure on an already overburdened criminal justice system.
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Reentry programs are designed to assist incarcerated individuals with a successful transition to their community after they are released. Specifically, the strategy calls for supporting post-incarceration reentry efforts by assisting such individuals with technical assistance and financial services needed to use their skills to start a business. At First Community Capital our main purpose is to make communities safer, by assisting those returning from prison and jail in becoming responsible and productive tax-paying citizens, while also saving taxpayer dollars by lowering the direct and collateral costs of incarceration.
