Financial collaboration between Wells Fargo and Hello Alice for a $70 million small-business funding scheme
In a collaborative effort, Wells Fargo, Hello Alice, the Global Entrepreneurship Network, and Mastercard have launched a new fund as part of Hello Alice's Equitable Access Program. This fund, totalling $70 million, aims to provide capital and access to credit for small-business owners who may be underserved or credit-challenged.
Wells Fargo is providing the initial capital for the fund, which will be deployed over the next five years. The fund's primary purpose is to offer credit enhancements to banks, enabling them to extend loans to small businesses that might otherwise struggle to secure financing.
According to Otis Rolley, President of the Wells Fargo Foundation, lack of access to capital and credit is the No. 1 challenge for small businesses. This fund seeks to address this issue head-on, providing much-needed financial support to entrepreneurs who are vital to our economy.
In addition to the fund, Hello Alice has also recently launched a business health score tool. This tool allows small-business owners to assess their financial health in a 0-100 score, providing valuable insights into their current financial situation and areas for improvement.
The collaboration of these organisations in providing a $70 million philanthropic project offers small entrepreneurs a unique opportunity to scale their businesses with credit and financing. While there are other large-scale philanthropic projects, such as those led by the Gates Foundation and the Global Fund, they primarily focus on the health sector and not explicitly on credit for small entrepreneurs.
This initiative underscores the commitment of these organisations to supporting small businesses and fostering entrepreneurship. By providing access to capital and credit, as well as tools to improve financial health, they are empowering small-business owners to grow and thrive.
