Scaling With Impact: Working Solutions Celebrates $50 Million in Small-Dollar Financing
San Francisco, CA (January 31, 2024) — Working Solutions CDFI, a certified community development financial institution (CDFI), announced today that it has surpassed $50 million deployed in small-dollar loans and grants to nearly 3,000 Northern California small businesses. Over half of those funds have been disbursed since 2020. As the First to Believe in Small Business, Working Solutions specializes in serving start-up and early-stage businesses and deploys over 90% of its capital to women and entrepreneurs of color.
This significant milestone comes amidst a growing credit crunch that is exacerbating long-standing inequities in access to capital. Last year nearly half of banks surveyed confirmed that they had tightened their lending standards for small businesses, and approvals for businesses with less than $100,000 in revenue were down 36% in 2022 compared to 2019. Business owners of color are disproportionately affected — for instance, approvals for Black-owned businesses were down 41%, compared to 12% for White-owned businesses. Despite the high demand for small-dollar loans, many lenders do not offer them because they provide thin-to-negative profit margins.
“When we launched our strategic plan in 2020, we set the ambitious goal to more than double our all-time lending in just five years to meet the growing demand for capital across Northern California,” shared Sara Razavi, CEO of Working Solutions. “We are extremely proud to have achieved our goal ahead of schedule while maintaining our commitment to small-dollar loans and reaching entrepreneurs that face entrenched, systemic barriers to capital.”
Working Solutions makes loans of $5,000-$100,000 paired with free one-on-one business support to help entrepreneurs take the first step in their business and scale sustainably. In FY23 alone, Working Solutions disbursed $6.9 million in small-dollar loans and grants to 223 small businesses with 80% of loans under $50,000. Working Solutions has expanded its lending to BIPOC and women entrepreneurs in particular, including more than doubling its rate of lending to Black-owned businesses in the last five years. We continue to be a leader in lending to Latino and AAPI communities with plans for additional growth. In FY23, 97¢ of every dollar disbursed by Working Solutions went to businesses owned by BIPOC, women, and/or low-income individuals.
Through small-dollar financing and customized consulting, Working Solutions supports financial resilience and sustainable growth for small businesses. “Working Solutions has been an excellent partner and supporter in Entevos LLC’s growth,” shared Janet Evans Miller, a small business owner and Working Solutions client. “During the early stage, the team at WS helped me navigate the process to gain working capital that allowed the company launch. And WS is still there today providing financial assistance and invaluable education and professional services.”
“Small-dollar loans are an important tool. An affordable loan or grant made at the right time in the business cycle can help drive success,” said Titi Ikhile, Chief Program Officer for Working Solutions. “We believe all entrepreneurs should have the opportunity to build wealth through entrepreneurship. Working Solutions’ growth since 2020 demonstrates that it is possible to deliver restorative, small-dollar financing with significant social impact at scale.”
About Working Solutions
Working Solutions CDFI is the First to Believe in start-up and early-stage businesses by providing diverse entrepreneurs with affordable capital, customized business consulting, and community connections to increase economic opportunity in Northern California. Working Solutions envisions a future where all small business owners are financially resilient and strengthen their communities through sustainable entrepreneurship.