Community Investing Pilot for Historically Underfunded Small Businesses
Fairfield County’s Community Foundation Partners with Honeycomb Credit to Launch a Community Investing Pilot in Fairfield County for Historically Underfunded Small Businesses
NORWALK, CT (March 13, 2024) – Fairfield County’s Community Foundation (FCCF) announces a new initiative aimed at helping entrepreneurs in the region overcome financial barriers. In partnership with Honeycomb Credit, this collaborative effort introduces a community investing pilot program specifically designed to support local Black, Indigenous, and People of Color (BIPoC) entrepreneurs in low to middle income neighborhoods who have historically faced challenges in securing credit or loans to grow their businesses.
By leveraging Honeycomb’s innovative crowdfunding platform, this funding program allows small business owners to borrow directly from their customers, community members, and FCCF itself. The initiative aims to address a glaring economic gap in Fairfield County which has the second highest rate of income inequality among all metropolitan areas in the country.
“We need a stronger entrepreneurial support ecosystem for Black and Latino small business owners in Fairfield County – which has the second-highest rate of income inequality among all metropolitan areas in the country,” said Mendi Blue Paca, President & CEO. “With median wealth of white households being 8 times greater than Black households and nearly 5 times greater than Latino households, current and potential Black and Latino entrepreneurs often lack access to the personal financial capital needed to invest in starting and growing businesses. Our partnership with Honeycomb is one way we can help them overcome the barriers they face.”
A Commitment to Growth and Equity
Supporting efforts to increase equitable opportunities for our community members to increase their income and build assets is one of the four strategic focus areas outlined in the Community Foundation’s strategic plan, Fairfield County Forward (LINK). This includes investing in partners like Honeycomb to support skill-building and business growth for entrepreneurs.
FCCF has committed $200,000 to kickstart the community investing pilot, signaling a strong commitment to fostering an inclusive economic environment where all entrepreneurs have the opportunity to succeed. Business owners seeking capital of $25,000 or more are invited to apply for an initial investment of $10,000 from the FCCF to help realize their growth ambitions.
Understanding the Model: Crowdfunding for Community Empowerment
Honeycomb Credit’s model stands out by enabling entrepreneurs to tap into the financial power and support of their own communities. This approach not only facilitates access to needed funds but also strengthens community ties, markets the business, and builds a network of potential partners.
“This partnership provides BIPoC small businesses the platform to capitalize on their community networks, " said Alex Quesada, of FCCF’s finance and administration team. “Too often, small business success has been limited to those who can leverage longstanding, intergenerational connections to open doors. These entrepreneurs have strong ties to their community and neighborhoods. Honeycomb is an opportunity to leverage that social capital into direct investment into their community.”
Eligibility and Application Process
The pilot program is open to BIPoC entrepreneurs from low-to-moderate-income communities in Fairfield County. Interested applicants are encouraged to start the conversation by learning more about the loan process and scheduling a chat with Honeycomb Credit at: https://www.honeycombcredit.com/grow
Join Us in Supporting Community Investment
The FCCF invites the community to play an active role in this pilot by sharing information with potential applicants and supporting local business campaigns on Honeycomb. For those able, investing in these businesses can make a significant difference to their success and the overall vitality of our community.