Starbucks Coffee Co. is teaming up with community development lenders to create a nationwide loan fund that would help local businesses, developers, nonprofits and micro-enterprises expand and create jobs.
The Seattle company's foundation is committing $5 million to seed the Create Jobs for USA fund, which will be administered by the Opportunity Finance Network, an organization that represents community development financial institutions. Starbucks is also its customers to make donations to the fund, either online at www.createjobsforusa.org, or in stores starting Nov. 1.
In a news release Monday, Starbucks Chairman and Chief Executive Officer Howard Schultz said that the fund would be used to make loans to businesses, many in low- to moderate-income communities, that are struggling to obtain credit.
"We've got to thaw the channels of credit so that community businesses can start hiring again," Schultz said.
Starbucks customers who contribute at least $5 to the fund will receive a red, white and blue wrist band as a symbol of their support. Mark Pinsky, the president and CEO at the Philadelphia-based Opportunity Finance Network, said that every $5 donation will be parlayed into $35 in financing to support local businesses.
"We are thrilled to partner with Starbucks on this innovative and high impact solution to help put America back to work," Pinsky said in a news release.
