Pennsylvania Secures Funding for Underserved Entrepreneurs

Pennsylvania has taken a significant step toward empowering underserved entrepreneurs through a new funding initiative. The Pennsylvania CDFI Network (PA CDFI Network) has recently secured $1 million from TD Bank to bolster its Drive Your Business program. This initiative aims to provide tailored support to small businesses that have historically been overlooked by traditional lending institutions.

The funding will be allocated toward enhancing resources such as financial assistance, coaching, technology, and educational materials. The PA CDFI Network, founded in 1997, currently comprises 17 community development financial institutions (CDFIs) and has successfully issued over $494 million in loans to entrepreneurs from both rural and urban areas of Pennsylvania, including the greater Philadelphia region. The CEO of the PA CDFI Network emphasized a deep commitment to assisting businesses regardless of their credit history or current cash flow issues.

As part of their continued efforts to foster business growth, the PA CDFI Network participated in the TD Ready Challenge for 2024. This annual initiative by TD Bank seeks to find innovative solutions that specifically address the needs of underserved small business owners. Unlike previous years where the focus was on different aspects of small business development, the 2024 challenge sought solutions to help businesses during their development, launch, or scaling phases. After a rigorous evaluation process, the PA CDFI Network’s Drive Your Business program was selected for funding due to its unique approach and potential impact.

The Drive Your Business program stands out by combining extensive training with community engagement to facilitate better access to vital resources for entrepreneurs. As part of the program, participants undergo comprehensive assessments, which lead to personalized action plans that cater to their specific business needs. In addition, one-on-one coaching is provided, along with assistance in preparing and submitting loan applications, making it easier for entrepreneurs to secure the funding they need.

A prime example of the program’s success is the story of entrepreneurs Cynthia Betterson and Samara Heaggans, who co-founded BackHome Foods. Through the Drive Your Business program, they gained crucial funding and were introduced to significant networking opportunities. This support enabled them to effectively scale their business and expand product distribution in local markets.

Looking ahead, the PA CDFI Network plans to utilize the TD Ready Challenge funds to further develop its technology and coaching initiatives. The goal is to support an estimated 600 underserved entrepreneurs over the next three years. The organization aspires for these businesses to progressively transition from reliance on CDFIs to integration into the mainstream banking system, ultimately enhancing their financial independence and sustainability.

In addition to financial assistance and coaching, the PA CDFI Network is committed to increasing awareness and engagement among local communities to strengthen the network of resources available to aspiring business owners. Word-of-mouth advocacy and community involvement are seen as crucial factors in ensuring that potential entrepreneurs are aware of the support available to them.

In summary, the investment from TD Bank into the Drive Your Business program is a pivotal stride towards fostering a more inclusive entrepreneurial ecosystem in Pennsylvania. Through targeted support and innovative programming, the PA CDFI Network aims to empower underserved business owners, facilitating their growth and integration into the larger economy.