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Northern Trust provides $100 million to support small business

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May 11, 2020

Northern Trust Corporation is providing $100 million in low-cost funding to assist Community Development Financial Institutions in providing loans to small businesses and non-profit organizations under the federal Paycheck Protection Program, according to a company press release. CDFIs provide loans, investments, financial services and technical assistance to underserved populations and communities.

The financial support provided by Northern Trust will help with the rapid deployment of the PPP loans and provide low cost capital that will bridge the timing between processing the loans and the reimbursement by the Small Business Administration. 

For small businesses not able to access PPP loans, Northern Trust is investing in CDFIs that can provide them loans through state COVID-19 small business loan pools, such as the Illinois Small Business Emergency Fund and the San Francisco Hardship Emergency Loan Program.

Northern Trust's partners in these investments include:

• Self-Help Fund ($50 million) — a national CDFI with community development credit union branches in Illinois, California, Florida, North Carolina and South Carolina. 
• National Development Council (NDC) CDFI Subsidiary Grow America Fund (GAF) ($25 million) — a national SBA lender.
• immito ($10 million) — the SBA subsidiary of Local Initiatives Support Corporation, a national social enterprise.
• Access to Capital for Entrepreneurs: provides SBA lending in Atlanta and Northern Georgia.

• Black Business Investment Fund: provides SBA lending in the state of Florida.
• PeopleFund: provides SBA lending in Texas.
• Virginia Community Capital: provides SBA lending in Virginia.
• Wisconsin Women's Business Initiative Corporation: provides SBA lending in Wisconsin.