Wells Fargo Works for Small Business Diverse Community ...

[Pages:2]Wells Fargo Works for Small Business? Diverse Community Capital

CDFI Best Practice Case Study: Targeted Business Advising Services

As a Diverse Community Capital Awardee... Pacific Community Ventures (PCV) strengthens communities by investing in small businesses, creating good jobs for working people, and making markets work for social good.

Challenge and Solution

From its inception 20 years ago, PCV has paired small business clients with free mentoring, matching volunteer advisors from the business world with small "mom and pop" businesses needing expert technical assistance or coaching. For 15 years, the CDFI managed the program using spreadsheets. As the program grew, it became hard to track. Then, PCV received funding to build an online business mentorship platform, enabling the program to scale rapidly.

Today, PCV's Business Advising platform is a free-to-users national program that pairs pro bono advisors with U.S. small businesses in operation for at least a year, and one or more employees. Advisors help with anything the small business owner needs, including marketing, operations, sales, information technology, financing, and more. PCV's program now has a network of more than 1,000 expert advisors--seasoned entrepreneurs and senior professionals from banks, consulting firms, and large corporations nationwide--registered to work with small businesses across all 50 states.

How it works:

? Businesses and advisors register at advising ? PCV staff make personal connections with businesses and advisors to screen them ? Their "" matching algorithm pairs advisors and businesses, and

PCV staff make sure the profiles and personalities of each in the pair will fit ? Advisors and businesses meet on a regular basis, typically for 4-5 months ? Most business owners get 5-8 hours of free advice each month, and relationships

with advisors can last as long as needed--years in some cases

Impact

On average, companies working with advisors from Pacific Community Ventures' platform increase revenue by 20 percent each year.

In 2018:

? PCV business advisors volunteered 4,729 hours, providing more than $709,369 worth of free advice and coaching

? Businesses working with PCV Business Advising and PCV's lending program created and grew 2,583 jobs--21 percent job growth, versus a national average of 1.8 percent for small businesses

About Pacific Community Ventures

Pacific Community Ventures is a nonprofit CDFI that envisions a world of thriving communities where everyone has a fair shake. Their mission is to invest in small businesses, create good jobs for working people, and make markets work for social good. They achieve our mission through a combination of fair lending, free mentorship, skilled volunteerism, impact investing consulting services, and field-building research.

Founded:

1998

Type of CDFI:

Loan Fund

Target Market for Lending:

California-based businesses in business for 12 months, with 1 or more full- or part-time employee

Types of Investing:

Small Business

Financing Outstanding (2017): $3.5 million

Clients Served (2017):

16

Customers:

74% women-owned and 42% people of color-owned small businesses

Website:



"With Pacific Community Ventures' platform, we're helping small `Main Street' business owners build their businesses by giving them access to skills and experience through mentorship. As a result of working with advisors, these businesses grow stronger and become even better employers and better neighborhood partners."

-- Robert Porter, Managing Director, Business Advising and Lending, PCV

This is one in a six-part series of cases studies spotlighting CDFIs (community development financial institutions) in the Wells Fargo Diverse Community Capital network, which is funded with a $175 million commitment in capital and has already supported more than 40,000 jobs and $390 million in financing for diverse small businesses. CDFIs are private financial institutions dedicated to delivering responsible, affordable lending and financial services to help underserved people and communities join the economic mainstream.

(April 2019)

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