The Jessie Ball duPont Fund announced June 27 that The Community Foundation for Northeast Florida will commit $250,000 to expand economic opportunity through the JAX Microfinance Fund, which invests in online platforms that lend to small business owners.
Through the partnership, the JAX Microfinance Fund has more than $550,000 available for microloans to entrepreneurs, particularly women and people of color in Baker, Clay, Duval, Flagler, Nassau, Putnam and St. Johns counties.
“This investment by The Community Foundation is a powerful source of support for our community’s small business owners, many of whom are unable to access traditional banking options and have historically relied on predatory lending sources,” Chris Crothers, director of impact investing for the duPont Fund and founder/manager of the JAX Microfinance Fund, said in a news release.
“With the support of TCF and our other investors, the JAX Microfinance Fund is poised to help even more entrepreneurs and individuals in our community secure the capital they need to realize their dreams and pursue sustainable wealth-building opportunities,” Crothers said.
The commitment by the foundation nearly doubles the capacity of the JAX Microfinance Fund, which originated in 2022 with a $300,000 investment from the duPont Fund.
The JAX Microfinance Fund’s first investment was $152,500 to the crowdfunding microloan platform Honeycomb Credit in 2022. Along with $152,500 in crowdfunding from the Jacksonville community, $393,282 was raised to support nine small local businesses owned by women and/or people of color.
The Community Foundation’s investment comes from its Local Capital Pool, an investment option offered to donors with advised funds at The Community Foundation.
Donors make a tax-deductible, charitable contribution to their Donor Advised Fund and The Community Foundation makes low-cost loans to nonprofits and small businesses, yielding a financial and social return through an approach known as impact investing.
When the loan term is up, the funds return to the Donor Advised Fund for donors to reinvest in the Local Capital Pool or to give as grants to nonprofits of their choosing.