Truist Donates $40 Million to Launch Innovative Nonprofit Fund Supporting Ethnically, Racially Diverse and Women-Owned Small Businesses
Truist Financial Corporation announced a $40 million initial donation to help establish CornerSquare Community Capital, a new national nonprofit fund that will support selected community development financial institutions (CDFIs) through the purchase of 25% loan participations.
Through this unique partnership model, CornerSquare and Truist will enable the participating CDFIs to increase their lending capacity with their existing capital, ultimately expanding their reach and support to more small businesses in their operating areas.
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Through this nonprofit program, 100% of the funding will be allocated to racially and ethnically diverse small business owners, women and individuals in low- and moderate-income communities, with a focus on African American-owned small businesses. This investment marks the largest single charitable commitment to the CDFI sector in Truist’s history through its heritage BB&T and SunTrust brands.
CornerSquare Community Capital will operate as a subsidiary of the NC Rural Center, a nonprofit that has worked for more than 30 years to support small business owners and entrepreneurs in low- and moderate-income communities. The creation of the new nonprofit also marks the expansion of the NC Rural Center to help bring its suite of lending and small business development programs to markets across Truist’s footprint with the goal of creating a sustainable model.
“We’re thrilled to expand our partnership with Truist on this innovative program to help underserved small businesses with their single largest need – operating capital – during this difficult time,” said NC Rural Center President Patrick Woodie. “The first-of-its-kind fund provided by Truist will allow our selected CDFI partners to do more with their existing capital, enabling them to expand their reach and scope across Truist’s footprint and beyond, while increasing our collective support of historically under-resourced small businesses.”
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