NEW YORK, Oct. 22, 2020 /PRNewswire/ -- Comerica Bank
is teaming up with the Local Initiatives Support Corporation (LISC)
to expand access to capital for small businesses and nonprofits led
by people of color—especially organizations without the size or
track record to attract conventional financing on their own.
Comerica is providing a $1 million
grant to serve as a backstop for patient, flexible loans in
communities where LISC is working to catalyze economic opportunity
in Los Angeles, Detroit and Phoenix. The grant will fund a loan-loss
reserve that mitigates risk, so that at least $4 million in new capital can flow, and it will
also support technical assistance to help owners and operators
address challenges in their markets, including COVID-19.
"The COVID-19 pandemic has adversely impacted many small
businesses who continue to seek necessary funding," said Comerica
Bank Chief Community Officer Irvin Ashford,
Jr. "Small businesses serve as pillars in our local
communities, and Comerica remains committed to ensuring small
business owners from low- to moderate-income communities can access
critical capital to successfully navigate these turbulent economic
conditions. With support from LISC, small business owners can
continue to serve as the economic engine for our communities."
The new grant builds on an existing partnership between LISC and
Comerica that has focused on expanding businesses and jobs,
supporting affordable housing development and fueling a broadly
shared prosperity in places where both organizations operate.
LISC is the nation's largest community development organization,
with 35 metro-area program offices, a national rural development
program, and more than $22 billion
invested in thousands of urban and rural communities across the
country.
"Small businesses and nonprofits are the economic backbone of
their communities," said Maurice A.
Jones, LISC president and CEO. "When we invest in their
growth and sustainability, good things happen—jobs and incomes
expand, nearby residents gain access to vital products and
services, owners invest in their communities, and the local tax
base grows."
The opportunities are particularly noteworthy for entrepreneurs
of color, he said. These owners are less likely to have the cash
reserves and credit needed to sustain their employee base through a
recession like the one caused by COVID-19, or to be able to offer
the opportunity for their staff members to work from home.
"Now, more than ever, it is essential that we partner with
entrepreneurs as they work tirelessly to recover, rebuild and
grow," Jones said. "Partners like Comerica help our economy work
better for everyone and drive growth long into the future."
About Comerica
Comerica Incorporated (NYSE: CMA) is a
financial services company headquartered in Dallas, Texas, and strategically aligned by
three business segments: The Commercial Bank, The Retail Bank and
Wealth Management. Comerica focuses on relationships, and helping
people and businesses be successful. In addition to Texas, Comerica Bank locations can be found in
Arizona, California, Florida and Michigan, with select businesses operating in
several other states, as well as in Canada and Mexico. Comerica reported total assets of
$83.6 billion as of Sept. 30, 2020.
About LISC
With residents and partners, LISC forges
resilient and inclusive communities of opportunity across America –
great places to live, work, visit, do business and raise families.
Since 1979, LISC has invested $22
billion to build or rehab more than 419,000 affordable homes
and apartments and develop 70.3 million square feet of retail,
community and educational space. For more, visit www.lisc.org.
Media contact:
Colleen
Mulcahy, for LISC
312-342-8244
colleen@mulcahycommunications.com
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SOURCE Local Initiatives Support Corporation (LISC)