For many small business owners, getting access to capital is only the first hurdle. The bigger challenge is knowing how to use that capital strategically, strengthen financial health, and become positioned for the next level of financing.
A new $1.3 million grant from Wells Fargo aims to address both sides of that equation. Through its Open for Business Growth initiative, Wells Fargo is funding Ascendus’ Path to Growth Program, a two-year effort supporting entrepreneurs in New York, Florida, Georgia and North Carolina.
The program is particularly relevant for entrepreneurs who have viable businesses but may not yet qualify for conventional bank financing.
Capital and Coaching Go Hand in Hand
Under the program, Ascendus, a mission-driven nonprofit Community Development Financial Institution (CDFI), expects to provide approximately $900,000 in loans and lines of credit to 45 entrepreneurs. Participants will also receive more than 200 hours of one-on-one coaching, with the program designed to help businesses create or retain more than 170 jobs.
The financing can include term loans, lines of credit and other products designed to help business owners progress toward larger sources of capital.
Importantly, the program doesn’t treat a loan as the finish line. Ascendus will use its financial health assessment tools, including its FinHealth Score and Borrower Index, to develop individualized growth roadmaps for participating entrepreneurs. Quarterly coaching will focus on revenue growth, improving access to larger amounts of credit and eventually transitioning from nonprofit lending to traditional bank financing.
3 Key Takeaways for Entrepreneurs
1. Growth capital is becoming more strategic.
The initiative illustrates an important shift in how small-business financing can work. Rather than simply providing a loan, the program combines small business funding with financial coaching. That combination can help entrepreneurs make better decisions about cash flow, credit and expansion.
2. Being “not bank-ready” doesn’t mean your business isn’t growth-ready.
Many entrepreneurs, particularly businesses that have historically faced barriers to traditional financing, may have customers, revenue, and growth potential but lack the credit history or financial profile banks typically require. Programs through CDFIs can provide an important bridge between where a business is today and where it needs to be to access conventional financing.
3. Access to capital can create broader economic impact.
The program’s goal of creating or retaining more than 170 jobs underscores the connection between small-business growth and local economic development. When entrepreneurs have the resources to expand, they can hire employees, invest in operations, and strengthen the communities where they operate.
What This Means for Your Business
If you’re a minority-owned, women-owned or other small business in one of the four participating states, this announcement is a reminder to look beyond traditional banks when you’re evaluating financing options.
CDFIs can be particularly valuable when a business needs capital but isn’t yet positioned for conventional lending. Instead of waiting until you need money urgently, use this opportunity to evaluate your business credit, financial statements, cash flow and financing strategy now.
Even if you don’t qualify for this particular program, the model offers a useful lesson: capital and capability should grow together.
Before pursuing your next loan or line of credit, ask yourself three questions: What amount of capital would actually move my business forward? What financial improvements do I need to make before applying? And what support do I need to ensure I can turn borrowed capital into sustainable growth?
The Wells Fargo-Ascendus partnership demonstrates that financing isn’t simply about getting a check. For growth-minded entrepreneurs, the real objective is building the financial strength, systems and track record to keep accessing capital as the business grows.
SOURCE: EIN Presswire
