Wells Fargo's $500k Grant Spurs Innovation with TMC Community Capital’s Microloan Lite
The Microloan Lite program, a beacon of support from TMC Community Capital, stands out in the landscape of community development financial institutions (CDFIs) by revolutionizing the lending process. This innovative model streamlines the process, offering a lifeline to entrepreneurs with unconventional financial histories. The program's emphasis on character provides a unique solution for those facing rejection elsewhere.
TMC Community Capital's Microloan Lite program distinguishes itself from traditional micro lenders through a tech-forward and character-centric approach. Unlike conventional lenders relying on extensive documentation and credit scores, Microloan Lite emphasizes bank statements and alternative credit data. This not only expedites approvals but also ensures inclusivity for entrepreneurs with non-traditional financial backgrounds. The program uniquely prioritizes the character of the borrower, recognizing the potential beyond numerical indicators. Its flexibility in accepting alternative forms of documentation further enhances accessibility.
Over the past 12 months, TMC Community Capital has been utilizing the $500,000 grant awarded by Wells Fargo to support small businesses and pilot their innovative Microloan Lite program.
With the generous grant from Wells Fargo, the program has flourished. Since August 2022, Wells Fargo's support played a crucial role in TMC Community Capital’s funding of 61 Microloan Lite Loans, totaling $620,500. This data underscores the enduring impact of Wells Fargo's contribution in bolstering the success of the program, driving the economic growth of underserved communities.
The Microloan Lite program has empowered many entrepreneurs to overcome financial obstacles and achieve their business goals. For example, it has benefited Shakira Scott, the owner of Your Local Yoga Dealer, as well as Daniel and Celina, the owners of La Ramadita.
Shakira Scott, fondly known as "Your Local Yoga Dealer," is a versatile instructor offering virtual and in-person sessions. Specializing in Vinyasa, Barre, Yin Yoga, and guided meditation, she brings a holistic approach to wellness. Referred to TMC Community Capital by Oakstop’s Oakland Black Business Fund, Your Local Yoga Dealer epitomizes the journey of entrepreneurship backed by unwavering support. Over the past 10 years Shakira has taught thousands of yoga classes online, in gyms/studios, schools, retail spaces, community centers, corporate offices, and retreats in the state of California.
Shakira focused on virtual classes and small private groups during 2020 and some of 2021. The $5,000 loan from TMC Community Capital marked a pivotal moment for Shakira and Your Local Yoga Dealer to take the crucial step of obtaining and building out a studio in North Oakland in the Temescal District. Additionally, she is partnering with Groundfloor (Groundfloor Club) to open a studio in LA (Echo Park), set to open this Spring.
La Ramadita, a beloved restaurant with two thriving locations in Los Angeles, attests to the success of TMC Community Capital's Microloan Lite program. Owned by the dynamic duo, Daniel Aguas and Celina Garcia, the couple approached TMC in 2022 seeking a loan to fuel job creation, meet inventory demands, and cover renovation costs. Despite a shaky financial history, the Microloan Lite program provided a crucial lifeline, granting them a $15,000 loan that propelled La Ramadita's success.
With a stellar record of no missed payments, Daniel and Celina qualified for a significantly larger loan, enabling them to continue their expansion. La Ramadita's journey exemplifies how TMC Community Capital's innovative lending practices not only support business owners but also create a viable pipeline for entrepreneurs to flourish in today's economy.
The journeys of these entrepreneurs exemplifies the transformative essence of TMC Community Capital's Microloan Lite program. With steadfast support and innovative initiatives, TMC Community Capital continues to empower entrepreneurs like Shakira, Daniel, and Celina underscoring their commitment to fostering economic growth and opening doors for small businesses to thrive.