Wells Fargo and the Hello Alice team form $70 million small business investment fund
In a significant move to support the growth of small businesses, Wells Fargo has announced the launch of a new £70 million fund. The fund, part of the Equitable Access Program in partnership with fintech Hello Alice, the Global Entrepreneurship Network, and Mastercard, aims to provide much-needed capital and access to credit for small-business owners.
Lack of access to capital and credit is a common challenge for small businesses, according to Otis Rolley, President of the Wells Fargo Foundation. This fund is designed to address this issue head-on.
The RAG Foundation, GF BRYCK Ventures Fund, and the Gründerfonds Ruhr are the key organizations involved in financing the fund. Together, they are contributing ten million euros specifically for supporting DeepTech start-ups in the pre-seed phase.
The Equitable Access Program offers more than just financial aid. It also provides small-business owners with access to financial education through resources like the newly launched business health score tool by Hello Alice. This tool allows small-business owners to assess their financial health in a 0-100 score, offering valuable insights into their financial standing.
Moreover, the tool educates small-business owners on how they can improve their score, empowering them to make informed decisions about their financial future.
The fund will also provide credit enhancements to banks, including guarantees, loan-loss reserves, and cash collateral deposits. This will not only help small businesses secure the funding they need but also reduce the risk for banks.
The £70 million fund is set to be deployed over the next five years, marking a significant step towards fostering small business growth and financial inclusion. This initiative underscores the commitment of the involved organizations to support small businesses and contribute to economic growth.
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