Connect2Capital: $200 million. Thousands of Jobs. One Mission.
By: Dan Moret
Connect2Capital has been a vital resource for thousands of small business owners since this collaborative community of banks and mission-driven lenders launched in 2018. In October, we are celebrating a significant milestone: $200 million in lending deployed through the marketplace. This achievement was made possible by the hard-working mission-based lending partners that help small business owners take the first step toward growth, job creation, and community wealth-building.
When Community Reinvestment Fund, USA (CRF) started Connect2Capital, we knew that small businesses – particularly those operating in communities historically excluded from traditional lending ecosystems – needed a trusted source for online lending. Mission-based lending organizations like Community Development Financial Institutions (CDFIs) have filled that role with skill and dedication.
Today, between the challenging impacts of COVID-19 and the subsequent recovery opportunities, we are seeing proof that the CDFIs comprising the Connect2Capital marketplace fill an important gap in our nation’s finance system.
In a landscape full of payday and predatory lenders, Connect2Capital inspires a greater level of trust for business owners by connecting them with a network of more than 80 mission-based lending partners that offer responsible loan products through an easy-to-access online portal. These lending partners are all signatories to the Small Business Borrowers Bill of Rights, and are predominantly CDFIs.
Since 2018, Connect2Capital has:
- Deployed $200 million to small businesses across the country
- More than 4,300 loans deployed
- Average loan size: $44,000
- 42% have been in low- and middle-income communities
- 66% have been to MWBE businesses (either women or BIPOC owners)
- 44% have been to women-owned businesses
- 49% have been to BIPOC-owned businesses
- 88% had revenues less than $1,000,000
- 88% had fewer than 10 employees
Connect2Capital shows how technology can be a critical equalizer for small business owners, helping them navigate the lending process quickly, easily and at their own pace. With a strong network of lending partners and intuitive user experience for small business applicants, Connect2Capital and its partners are often able to provide funding for small businesses that may have been deemed ineligible for traditional loan products from mainstream financial institutions.
For small business owners who have had trouble accessing the small business finance system, particularly BIPOC and women entrepreneurs, Connect2Capital helps them gain equal footing and access financial resources needed to recovery and grow.
This milestone is a testament to the hard work of all Connect2Capital lending partners and especially the small business owners who took the first step toward growth, job creation, and community wealth building by getting started with Connect2Capital. Thank you!