Results: Since 1994, A4CB has supported more than 80,000 neighborhood entrepreneurs and funded more than 7,500 loans in excess of $85M, which in turn have generated and sustained an estimated 20,000 jobs in primarily low-to-moderate income neighborhoods.
Target demographics: Allies for Community Business serves all of Illinois and Indiana. A4CB primarily serves communities that have historically struggled to overcome obstacles to economic development. For example, while people of color make up more than 40% of the population, the national rate of minority business ownership is only 18.3% (Annual Business Survey, 2019). By contrast, 76% of A4CB-funded businesses in 2020 were owned by people of color. Similarly, for women, the national business ownership rate is 20% (Annual Business Survey, 2019) compared to 44% at A4CB. In 2020, 56% of A4CB clients were low-income individuals and 75% of A4CB’s clients operated their businesses in low-to-moderate income neighborhoods.
Direct beneficiaries per year: In 2020, A4CB funded 1,522 loans totaling $34.7M (a 400% increase in the number of units and more than a 1000% increase in dollars disbursed over the previous year) in response to the COVID-19 pandemic. Furthermore, A4CB staff provided business development assistance to 15,232 business owners in 2020.
Geographic areas served: A4CB serves all of Illinois and Indiana.
Programs: Allies for Community Business plays a critical role in removing barriers and providing funds and other business resources to entrepreneurs of color so they can in turn preserve jobs and wealth in communities that need it most.
Capital: A4CB offers loans and a line of credit product between $500 and $100k to early, emerging, and established businesses. To provide more capital to clients, A4CB introduced a new credit policy that is even more flexible than before. The loan process no longer considers credit scores or the value of personal collateral.
Coaching: A4CB provides free business development services to any interested small business owner via one-on-one coaching as well as small group and cohort-based training. To further increase accessibility for all entrepreneurs, services are offered across a range of platforms, including in-person, group webinars, and online and offline curriculum. In 2021, a new role of Financial Coach was added to further assist clients with their personal finances.
Collaborations: A4CB offers licensing support, access to procurement opportunities, and kitchen space via The Hatchery – a food incubator in Chicago’s East Garfield Park neighborhood that A4CB co-owns with the Industrial Council of Nearwest Chicago (ICNC). A4CB is amplifying this work by creating connections to more customers, better suppliers, quality support services, additional investment, and other entrepreneurs, which will be especially needed by clients during and after the pandemic. Through its recent designation as a Chicago Business Center by the City of Chicago, A4CB now provides licensing and permitting assistance to businesses on the West Side of Chicago.
The Hatchery provides A4CB food and beverage clients with an incubation space. Established as a joint venture between A4CB and ICNC, The Hatchery provides a physical space as well as education to food and beverage entrepreneurs to support their growth, enabling them to scale their businesses, which in turn, will help them create jobs and promote economic development on Chicago’s West Side. The Hatchery opened in late 2018 and A4CB relocated its office there in early 2019.
Moving forward, A4CB plans to play a key role in helping communities recover. To rebuild and succeed over the long-term, it is critical for small business owners to have all the resources they need during this unprecedented time, and thus, A4CB intends to focus on serving the entrepreneurs most vulnerable to impacts from the pandemic.
