Wells Fargo & Co. has launched Open for Business Growth, a $20 million philanthropic program designed to help small business owners who are ready to scale but face limited access to capital.
The program, which will begin in Chicago and expand to other U.S. markets, will distribute grants to nonprofits that support entrepreneurs in what the bank describes as “the missing middle”—those beyond the startup stage but not yet eligible for traditional lending.
“Small businesses on the brink of expansion are poised to make an even greater impact in creating jobs, increasing services, and strengthening the economy,” said Darlene Goins, head of Philanthropy and Community Impact at Wells Fargo. “But these small business owners in the middle often need creative financing options to take that next leap.”
The new initiative builds on the bank’s earlier $420 million Open for Business Fund, which was launched during the pandemic and helped support more than 336,000 small businesses and create or retain 461,000 jobs, according to Wells Fargo.
The first grant recipient, Allies for Community Business, will receive $2.5 million to pilot a revenue-based financing model and expand a construction loan program developed with HIRE360. The nonprofit provides capital, coaching, and connections for entrepreneurs, focusing initially on businesses with fluctuating revenues, such as those in the restaurant, retail, and construction sectors.
Brad McConnell, CEO of Allies for Community Business, stated that the funding will enable the provision of more flexible financing options tied to business performance, and estimates that the effort could support up to 260 local jobs.
