Fundation signs an MOU with bureau of the US Department of Commerce to provide greater access to capital for minority-owned business enterprises.
Fundation has tied up with US Department of Commerce bureau “Minority Business Development Agency” (MBDA). The two parties have signed a memorandum of understanding which is designed to provide minority owned businesses with digitally-enabled financing solutions, thus expanding their access to capital.
Fundation is a direct lending platform for small businesses, which claims to combine the benefits of a bank loan with the speed and efficiency of online lending. The platform signed a referrals partnership with Regions Bank in October 2015, which Fundation CEO Sam Graziano described as the first “meaningful” example of a platform-bank integration. Small businesses are able to access Fundation loans directly through the Regions.com website.
The MBDA partnership stands to extend Fundation’s reach within the US. MBDA currently operates a national network of 38 business centres, which are each equipped with specialists for helping minority-owned businesses to grow. Fundation’s products – which include term loans, lines of credit and small business credit products – will now be made available through these centres. These centres will plug into Fundation’s Partner Portal, which covers banks and credit unions, vendors and suppliers, other loans specialists, and so on.
Educating minority-owned businesses about “best practices” – through webinars and/or workshops – is another key feature of the MOU. Sam Graziano, CEO of Fundation Group LLC, offered comment: “We are thrilled to partner with MBDA to serve the MBE community. Young and growing small businesses need a lot of things to be successful. The combination of MBDA’s capabilities with ours will offer MBE’s with both high quality business advice and best-in-class credit products, two of the cornerstones in any growing enterprise.”