To Start, Grow Or Expand A Business Requires Access To Capital…CommonCapital
Springfield, MA — Small business owners unable to get a loan from a bank may believe they have no other options. Those located in western Massachusetts often can find a solution with Common Capital.
“Our focus is to help those people that can’t get financing from somewhere else, but can really impact the community,” said Common Capital’s Vice President of Lending Callie Niezgoda.
Risk is a primary barrier in receiving a loan, whether it’s a new enterprise for someone who hasn’t previously owned a business or because a business owner has struggled over the past year. Where Common Capital differs is reducing that risk by providing business education and support to those companies.
“They get a loan from us, but they also get free one-on-one consulting and assistance to help them be better business owners,” Niezgoda said.
The types of resources available range from bookkeeping to social media strategy. Coaching is offered one-on-one or through group seminars and webinars. Being invested in the success rate of those businesses obtaining a loan is what sets apart Common Capital according to Jennifer Sanchez, director of outreach and communications.
“Our focus is to help those people that can’t get financing from somewhere else, but can really impact the community. ”
“We get to know who the borrowers are and really build relationships that you wouldn’t traditionally build with a bank. You really get to know them on a personal level,” Sanchez said.
Cher’ie Wilson opened M.C.’s Salon after losing her hairstyling job during the pandemic.
Springfield Mayor Domenic Sarno, Sanchez, Wilson and Common Capital Business Assistance Coordinator Emil Farjo.
Businesses must be located within the four counties: Hampden, Hampshire, Berkshire and Franklin. While any business may apply for a loan, some applicants will be referred to a different financial institution if the company has more appropriate credentials and history for a traditional loan from a bank.
“The one thing that sets us apart is that we’re not going to give you a no, it’s how do we get there. It’s a self-sufficiency, motivational atmosphere,” Sanchez said. However, applicants must have a mission and must serve the community in a positive way to be considered.
Niezgoda’s favorite types of businesses to finance are those that support undeserved populations and bring jobs and revitalization to the community
“It’s fun to see a storefront that used to be vacant and know that you helped it open, and the community is more vibrant because of that,” Niezgoda said.
It can take anywhere from one day to six weeks to receive the loan depending on the size of loan and business circumstances. Through the Fast Track Program, certain businesses can obtain financing in 24 hours if they have their financial information in order, request a smaller dollar amount and are well-established.
“We get to know who the borrowers are and really build relationships that you wouldn’t traditionally build with a bank. You really get to know them on a personal level.”
While roughly 10% of conventional loans nationally are given to minority-owned businesses, that percentage rises to 30% at Common Capital. Forty-two percent of business owners in the Common Capital portfolio are female.
Businesses like Alicsia O The Salon benefit from Common Capital loans
Common Capital is a Community Development Finance Institution certified by the US Treasury and funded through a multitude of sources. They receive ongoing federal funding from the Small Business Association, work through various banks and other state small business associations.
The organization also started the Community First Fund as a way to encourage community members to be invested in these small businesses. Local individuals may invest as little as $500 to be put towards a loan that’s repaid between three and five years with interest.
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