National Expansion (2014-2017)
Overcoming The Funding gap
Although interest rates have been kept at historically low levels by the Federal Reserve since the 2008 financial crisis in order to spur loan activity and borrowing to grow the economy, a major barrier cited by small businesses continues to be access to low cost capital along with the real-time technical assistance needed to successfully launch and sustain a small business. While banks say that there is currently a lack of demand, and are concerned that they cannot find enough qualified borrowers, small business owners indicate that, despite being creditworthy, they are still having difficulty accessing the low-cost capital they need.
The platform's development was showcased by the Clinton Global Initiative, highlighted at the White House, featured by the Huffington Post and Goldman Sachs 10K Small Businesses Initiative in "What's Working: Small Business,” and recognized as a “FinTech innovation” in the August 2016 Business and Management Review.
High Profile Partnerships
COLLABORATION IS OUR COMPETITIVE ADVANTAGE
Noteworthy collaborators have included the Obama White House, New York City Economic Development Corporation, the Thunderbird Institute at ASU, Dreambuilder, Kiva, CDC Small Business Finance, the U.S. Departments of Education and Treasury, Stanford, Yale, the State University of New York, Medgar Evers College, the New York State Small Business Development Centers, and Syracuse University. In addition, the Ashoka organization assisted in the planning stages of the SourceFunding.org national launch as part of our founder's participation in the inaugural cohort of the Ashoka U Accelerator.
Our Commitment to Action
As a mission driven organization, SourceFunding.org is committed to achieving significant economic impact during our national expansion. In June 2016, the SourceFunding.org national expansion was featured as a Clinton Global Initiative “Commitment to Action" by founder W. Michael Short and founding investor Janet Davas, mentor with the W.K. Kellogg Foundation and founder of Hatch, LLC, and Liberty's Kitchen. As a Clinton Foundation sponsored initiative, SourceFunding.org will promote financial inclusion and community revitalization by empowering the nation's significantly under-served small businesses and entrepreneurs.
We Have Liftoff
STEM initiative for underserved youth supported by SourceFunding.org pilot in the Near Westside of Syracuse, NY, which leads the nation in poverty concentration among African & Latino Americans.
The proprietary process involved with the matchmaking is unique. Our national expansion is automating and scaling the SourceFunding™ platform piloted and refined by award-winning consultancy Short Enterprises since 2011. The pilot facilitated access to $10 million in capital for diverse initiatives involving urban revitalization, green infrastructure, STEM for under-served youth, and small business development in a community with the nation's highest levels of poverty concentration among African and Latino Americans. Once deployed nationally, SourceFunding.org will use innovative algorithms, predictive analytics, and database technologies to match under-served and marginalized small businesses and entrepreneurs with the nation's responsible and low-cost community banks, credit unions, and economic development organizations.
Emphasis on Underserved:
Leveling the playing field for all entrepreneurs
Our emphasis on marginalized and underserved small businesses and entrepreneurs stems from our recognition that they are critical economic drivers. This is especially true in low-income and immigrant-dense neighborhoods. Statistics show that Asian, Latino, and African Americans are three times more likely to start a business but are significantly less likely to successfully obtain financing. Women in particular face significant challenges, as they received only 4% of the small business capital loaned in the U.S. last year. High impact social enterprises, rural entrepreneurs, and nonprofits also face high barriers to obtaining capital.