Starbucks Steps Up to Help Small Business in a Big Way
Starbucks said it is investing $100 million to launch the Starbucks Community Resilience Fund to focus on supporting small businesses and community development projects in Black, Indigenous and People of Color (BIPOC) neighborhoods.
“Starbucks has always been a company focused on caring for our partners, creating experiences for our customers and playing a positive role in our communities and throughout society,” said Kevin Johnson, Starbucks president and CEO, in a statement. “We are excited to make this investment as it aligns with our mission and values, and supports our aspiration to advance equity and opportunity in the communities we serve.”
By 2025, the Starbucks Community Resilience Fund will invest $100 million to advance racial equity and environmental resilience by supporting small business growth and community development projects in neighborhoods with historically limited access to capital. The investments will initially focus on 12 U.S. metropolitan areas and their surrounding regions: Atlanta, Detroit, Houston, Los Angeles, Miami, Minneapolis, New Orleans, New York City, Philadelphia, San Francisco Bay Area, Seattle and Washington D.C.
In partnership with community leaders, community development finance institutions (CDFIs) and other impact-focused financial institutions, the fund will help provide access to capital intended to support small businesses and neighborhood projects, including those addressing the inequitable impacts of climate change, Starbucks said.
As part of the initiative, Starbucks will work with partners like the Opportunity Finance Network (OFN) to allocate funds to local CDFIs that will provide borrowers with access to capital, ongoing mentorship and technical assistance.
“Starbucks is investing in the survival of small business by working with CDFIs in key cities across America,” said OFN President and CEO Lisa Mensah. “CDFIs deliver affordable credit as well as training on disaster recovery and rebuilding — and that is exactly what small businesses need right now to withstand ongoing economic and climate changes. With partners like Starbucks and CDFIs, these small businesses will have a fighting chance to recover, rebuild, hire workers and serve their local economy.”
The effort expands on Seattle-based Starbucks 2019 commitment to invest $10 million in four Chicago-based CDFIs.
“As Chicago continues down the road to recovery from the COVID-19 pandemic, Starbucks commitment to bettering the cities and communities they serve has been incredibly invaluable,” said Chicago Mayor Lori E. Lightfoot in a statement.