BayCoast Invests in Small Businesses of Color Fund
Swansea-based BayCoast Bank has joined Boston Children’s Hospital and the Dana-Farber Cancer Institute to fund an initiative that will invest in businesses owned by Black, Latino and Indigenous entrepreneurs and other people of colour.
The organizations invested $1 million in a capital growth fund administered by Local Initiatives Support Corp. (LISC). LISC said in a statement yesterday that its Massachusetts Small Business Growth Fund “would provide flexible capital akin to the ‘friends and family’ capital that often fuels small business growth, but is often beyond the reach of people of color. ”
Massachusetts entrepreneurs of color have unmet capital needs estimated at about $574 million per year, LISC said.
“LISC’s Small Business Growth Fund, tailored to entrepreneurs, is indispensable in supporting business growth, job creation and wealth creation by black and brown businesses,” said LISC Boston’s executive director. , Karen Kelleher, in the release. “The announced investments [Tuesday] by Boston Children’s Hospital, BayCoast Bank and the Dana Farber Cancer Institute will help us scale access to capital for Massachusetts entrepreneurs of color.
Growth capital gives business owners time to invest and stabilize their businesses, and repayment will not be required until businesses are successful in increasing revenue and meeting agreed growth targets, according to the press release.
LISC said it will invest in companies with revenues between $250,000 and $3 million, that have been in operation for at least two years, and have the ability to deploy capital for business improvement and growth. company. Investments will likely range from $50,000 to $250,000, with the investment amount based on earning potential. LISC said businesses located in economically disadvantaged communities will be given preference.
Half of the funds went to businesses on the south coast, including Fall River and New Bedford. When LISC offered the growth capital fund to BayCoast, the statement said, the bank agreed to invest in the fund and requested that it benefit entrepreneurs in the bank’s South Coast Massachusetts market. The two organizations had started working together in 2020 to help entrepreneurs of color access Paycheck Protection Program loans.
“BayCoast’s contribution to LISC’s Massachusetts Growth Capital Fund is an extension of our deep belief that the diverse people and businesses of the South Coast are our best investment,” said Nick Christ, President and CEO of BayCoast Bank, in the press release.
LISC said it has started recruiting candidates for the investment.