ImpactAlpha, May 28 – Early-stage impact investor ADAP Capital is offering something many fund managers aren’t: small-ticket checks for emerging-market entrepreneurs. The investment and advisory firm reached a second close for its second fund to make investments of $75,000 in up to 10 companies focused on alleviating poverty in low-income markets. “We’re investing at a
As America re-opens, “the death of Main Street” could spark a broad rethinking about the role of community development financial institutions, or CDFIs, and other channels to support underserved small businesses.
The good news: the structures we need to reform the capital system already exist.
The fund’s first $50,000 loan is to Limited Resource Teacher Training, which serves teachers in Africa and the Caribbean. The fund also approved loans to Pollinate Group and iKure.
Two weeks after the World Health Organization declared the spreading coronavirus a pandemic, the French government unveiled a €4 billion package to support innovative startups. Other nations have followed.
“We want all businesses to come out okay, but the places we know will be the hardest hit will be the low-income communities and communities of color,” Jeannine Jacokes of the Community Development Bankers Association.
The biggest impediment to access is that PPP loans are primarily flowing through big banks and established SBA lenders. That doesn’t reflect the evolving small business capital market. Less than half of small firms obtained funds from a bank in the last five years, according to a Fed survey earlier this year.