Small Business Equity Fund
PROGRAM OVERVIEW
Capital is critical to small business growth and success, but many businesses located in or primarily serving under-resourced neighborhoods do not have access to capital because their communities have been historically locked out of economic opportunity. Consequently, these businesses do not grow, fail in higher numbers, and if they survive at all, produce lower profits, hire fewer employees, and are less able to fuel wealth creation.
The Small Business Equity Fund for Jacksonville will bridge this capital gap by creating an equity investment fund to empower the growth of small businesses from under-resourced neighborhoods and build a sustainable investment model with the potential to seed wealth building in these communities.
Debt capital makes up the bulk of capital for small businesses, but small businesses from under-resourced neighborhoods have more difficulty obtaining it than other businesses. Gaps also exist in access to equity capital. With access to debt and equity limited, entrepreneurs frequently rely on their personal wealth or that of their networks, which is referred to as "friends and family" capital. This may come from savings, home equity, credit card advances, or other disposable assets. Jacksonville's stark wealth gaps make this source of capital elusive for many entrepreneurs. These gaps compound the ability of small businesses to access ''friends and family" capital.
The program will provide access to growth capital for small businesses from historically under-resourced neighborhoods to unlock their potential to grow, scale, create jobs and fuel wealth creation. LISC Jacksonville will invest in these businesses by providing them with grants in the form of patient capital, which function as substantial equity-like investments, but without the cost and loss of control that equity often requires.
LISC Jacksonville invested up to $50,000 in at least twenty small businesses from historically under-resourced neighborhoods. LISC Jacksonville has opened an application process for these businesses and will make grant awards based on the application submitted, supplemented by additional due diligence.
This program will:
- Build wealth for small business owners from historically under-resourced neighborhoods.
- Create and retain sustainable jobs in small businesses.
- Measure results and document impact to quantify success in promoting inclusive growth.
- Establish the investment thesis for a larger follow-on fund for these types of businesses.
LISC Jacksonville has awarded a majority of the $1 million grant it received from the City of Jacksonville to multiple small businesses from Jacksonville’s most under-resourced communities. The $1 million grant, which was secured by Jacksonville City Council President Samuel Newby, supported LISC Jacksonville’s Small Business Equity Fund, an equity investment fund the organization created to empower these small businesses, help them grow, and seed wealth building in challenged neighborhoods.
“Small businesses are the backbone of our local economy, providing necessary employment and wealth-building opportunities, yet access to growth-enabling capital is a perennial issue facing small businesses in our city’s most challenged neighborhoods,” said Dr. Irvin “PeDro” Cohen, executive director of LISC Jacksonville. “We are so grateful for the City of Jacksonville and particularly City Council President Samuel Newby for championing these funds for our city’s entrepreneurs, as these valuable dollars will help under-resourced small businesses unlock their potential to grow, scale, create and retain more jobs, and fuel wealth creation.”
Small Business 2022 Grantees:
Acuity Design Group
All Construction
Bob's Famous BBQ, Inc.
Center For Confidence, LLC
Creative Property Preservation, Inc.
Hart and Assoicates
The Highmark Group
H. Trent Elson Underground Sprinkler
L and J Insulation Corporation
Jackson Uniform Man, Inc.
MAD Product Innovations, LLC
Perkins Express Roofing & Construction
Professional Legal Support Services
R-ECO Environmental Painting
RJ Tripp, Inc.
Robert Davis Construction, LLC
Shiva Robotics Academy
Spencer Designer Florist Gifts & Arrangements
Star Liner, LLC
TSG Construction, LLC
TM Construction & Roofing, LLC
Young Legends Learning Center, Inc.
