Fifth Third Bank and CRF Launch Fund for Small Businesses

Ohio-based Fifth Third Bank and Community Reinvestment Fund, USA (CRF) have partnered to expand the availability of capital to small businesses in the 11 states served by the bank.

The Small Business Catalyst Fund enabled by this partnership has been launched with a $7.85 million investment, the organizations said in a Wednesday (Oct. 30) press release.

It will connect small business owners to potential capital options offered by community development financial institutions (CDFIs); will use a funding model that combines grants, micro loans and small business loans; and will help small business owners obtain working capital when traditional lending is not an option, according to the release.

The grants, micro loans and small business loans it provides will range from $5,000 to $750,000, the release said.

Funders include the Fifth Third Foundation, the Fifth Third Bank Community Development Corp. and Rockefeller Philanthropy Advisors, per the release.

“We are proud to launch this new fund to help expand access to capital for more small businesses across the communities we serve,” Kala Gibson, chief corporate responsibility officer for Fifth Third, said in the release.

Alexis Dishman, senior vice president and small business lending officer for CRF, said in the release: “In collaboration with Fifth Third Bank and our CDFI partners, CRF aims to improve access to capital and accelerate small business momentum through the creation of this innovative fund.”

In an earlier, separate collaboration, CRF partnered with Bank of America to launch an online platform that connects small business owners with CDFIs.

Launched in March, the Access to Capital Connector enables small business applicants to answer questions to become prequalified and then connected with the platform participants that can best meet their needs.

More than 150 CDFIs and other support organizations participate on the platform, offering capital and other resources for small businesses.

Conventional small business loans, offered through traditional lenders, may be hard to come by for smaller firms seeking capital to launch or grow operations, especially in developing communities, PYMNTS reported in February 2020.

This may be due to limited operating histories, owners’ thin credit profiles or a host of other factors.

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