Citi Group launches “Circle of Success” program in support of small businesses
Philadelphia, September 29, 2011 – Mayor Michael A. Nutter announced $2.3 million in Community Development Block Grants (CDBG) funding to support small businesses and commercial corridor development in the City through the Targeted Corridor Management Program, Business Technical Assistance Program and the Corridor Cleaning Program. Mayor Nutter also announced the expansion of the AmeriCorps VISTA initiative, which offers support to immigrant-owned small businesses in targeted areas to facilitate growth and integration
“Awarding CDBG funding creates jobs and builds the economy,” said Mayor Nutter. “By aligning public resources to small business needs, we are creating circumstances for long-term growth. Immigrant-owned businesses are a fast growing sector in Philadelphia and are essential to successful economic development.”
Deputy Director of Commerce Kevin Dow said, “Our neighborhoods are among our greatest assets. By supporting businesses located here, we ensure not only help to increase their bottom line, but more importantly, we support job creation where it is needed most.”
Additionally, Citi Community Development in partnership with Finanta and Entrepreneur Works announced the “Circles of Success” program which provides a combination of lending, credit building and financial literacy services including bilingual services to underserved and low-income entrepreneurs. Funded by a $125,000 grant from Citi Community Development Impact and Innovation Fund, the initiative will make loans of $1,000 to $20,000 to support the development of microbusinesses and build the credit of underserved and low-income entrepreneurs in the City of Philadelphia.
“Small businesses are a critical job-creating force behind recovering from the recession,” said Mayor Nutter. “Private initiatives, like Circles of Success that support small business owners by developing the skills and credit, are critical to boosting Philadelphia’s economy.”
Donald Haskin, Pennsylvania State Director of Citi Community Development said, “Finding creative solutions for low-income entrepreneurs is critical in Philadelphia and entrepreneurship is an affective way to generate income, build assets and achieve financial security. Particularly during times of high poverty and unemployment, it’s imperative for us to enable underserved and under-banked entrepreneurs – many of whom are immigrants, low-income earners and living in distressed communities – to overcome the barriers to forming good credit and accessing mainstream markets and sources of capital.”
CDBG funding has played an important role in developing City businesses.
Targeted Corridor Management Program: 12 community-based organizations partnered with the City to provide corridor management services to small businesses, which resulted in the creation of 146 new businesses and 497 new jobs. The Targeted Corridor Management Program will receive $825,000 in new CDBG funding.
The Business Technical Assistance Program: created 57 jobs and assisted over 312 businesses in 2010 with entrepreneurial skills training, business development assistance, financial and credit counseling, and other infrastructure support services. The Business Technical Assistance Program will receive $725,000 in CDBG funding.
This CDBG funding also allots $827,000 to create the Commercial Corridor Cleaning Program. Under this program, the City of Philadelphia will fund 15 organizations to carry out regularly scheduled litter removal to 25 miles of sidewalks and curbs in the City’s commercial areas.
In 2010, the Commerce Department launched the AmeriCorps VISTA initiative with two staff members supporting the Russian-speaking business community in Northeast Philadelphia and the African-Caribbean business community in West and Southwest Philadelphia. From August 2010 to August 2011, this initiative surveyed 540 businesses, resolved 173 inquiries and conducted 10 workshops. As a result, the AmeriCorps VISTA initiative is adding two new staff members to better serve the immigrant business community.
