Small Business Growth is Goal of Prudential Financial’s $15 Million Investment in FE Small Business Finance
April 24, 2021
Small business entrepreneurs in California, Arizona and Nevada will soon benefit from Prudential Financial, Inc.’s new $15 million “impact investment” in FE Small Business Finance, a nonprofit lender committed to creating positive social impact by providing new capital in innovative ways.
“From restaurants to automotive to electrical contractors, small business entrepreneurs are getting new access to the capital they need to expand and create jobs.” said Allison Kelly, FE’s senior vice president of innovation.
Impact Investing: Bridging the Gap Between Haves and Have Nots
Much has been written about impact investing in the context of the widening financial wealth gap between the “haves” and “have-nots” in the U.S. Some studies suggest that .01% of the U.S. population is worth almost as much as the bottom 90%, which is leading to a shrinking middle class and a more fragile economy and society.
The U.S. Partnership on Mobility From Poverty, funded by The Urban Institute and the Bill & Melinda Gates Foundation, reported recently that nationally over 33 million American households are “unbanked,” meaning they have no formal access to financial institutions and have to look outside the banking system for credit and other financial services, which often are more expensive. In turn, entire communities are deprived of quality financial services, including affordable small business loans.
To help correct these stark disparities and close the financial services gap, many well-established U.S. companies and foundations are committing significant financial resources to impact investing, an effort to generate financial return while creating positive, measurable social impact.
Prudential partnering for the long-term
National financial services company Prudential Financial, Inc. for example, is strategically extending capital to financial intermediaries like FE Small Business Finance, a nonprofit lender committed to create positive social impact by providing new capital in innovative ways.
“We’re grateful Prudential recognized FE as a partner to develop innovative ways to help underserved small businesses grow and create new jobs.”
Sr Vice President of Innovation
FE Small Business Finance
With Prudential’s $15 million financing FE plans to expand its lending to more small businesses – particularly minority-owned companies – via the following strategies:
- Growth capital loans delivered through FE’s Community Development Financial Institution (CDFI) fund, established to assist small business owners in underserved neighborhoods
- SBA Community Advantage loans up to $250,000
- New products and services currently being piloted
“Prudential has a long history of making impact investments in communities by deploying capital in partnership with social and financial organizations,” said Kelly. “We’re grateful Prudential recognized FE as a partner to develop innovative ways to help underserved small businesses grow and create new jobs.”
“ FE Small Business Finance is a great partner because they are committed to growing community commerce and have a track record of lending responsibly to diverse small business owners,” said Tony Berkley, Vice President, Impact Investments for Prudential.
FE Small Business Finance offers several loan options for business owners who want to grow their companies and are planning for their short- and long-term needs. Tell our loan experts about your business, and they’ll work to match you with a financing program that best helps you and your community. Reach us at email@example.com or (800) 611-5170.
About Prudential Financial
Prudential Financial, Inc. (NYSE: PRU), a financial services leader with more than $1 trillion of assets under management as of December 31, 2021, has operations in the United States, Asia, Europe and Latin America. Prudential’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. In the U.S., Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit news.prudential.com.