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Two of the biggest names in Greater Boston development are joining with two of the region’s biggest community banks to support a $10 million effort to give free bridge loans to Black- and Latino-owned businesses struggling in the face of the coronavirus pandemic.
A coalition of community organizations – including Amplify Latinx, Black Economic Council of Massachusetts, the Boston Foundation’s Business Equity Fund, CommonWealth Kitchen, the Foundation for Business Equity and Ujima Boston – have come together to form the Business Equity COVID-19 Emergency Fund, or BECEF.
The fund’s initial backers include $13.2 billion-asset Berkshire Bank, $11.6 billion-asset Eastern Bank, Bayside Expo Center developer Accordia Partners and suburban office titan Cummings Properties.
“As the COVID-19 outbreak continues, small businesses are under immense stress and Black- and Latinx-owned businesses are particularly vulnerable to the impact of this crisis,” Betty Francisco, co-founder of Amplify Latinx, said in a statement. “To avoid unemployment and other burdens that would exacerbate the existing racial wealth gap, we need to do more, and quickly. We formed the coalition as an immediate way to address this critical need for capital and expert support. To make a wider and deeper impact, we’re calling on others to join us.”
The BECEF aims to raise $10 million in capital to provide no-interest bridge loans and crisis response support teams to Massachusetts-based Black and Latinx businesses with revenues of at least $250,000. The no-interest bridge loans can be used for working capital and other demonstrated needs, such as salaries, inventory, or equipment. The loans will be up to $100,000 for two- to three-year terms, requiring no payments for one year and will have no prepayment penalties. To accelerate the ability for businesses to receive funding, the application and decision process will be finalized within 30 days of receiving the applications.
The supported businesses will be partnered with strategic advisors and crisis management expert consultants who will help assess the existing and potential impact of the pandemic on their business, develop financial forecasts and scenarios and create plans to mitigate the impact of the recession.
Companies seeking to donate to the BECEF should reach out to The Boston Foundation’s Corean Reynolds or Foundation for Business Equity Executive Director Glynn Lloyd.
