A community development institution announced Friday that it has received a $20 million donation from Wells Fargo to help non-white small business owners in Los Angeles acquire property, equipment and other assets.
Local Initiatives Support Corporation Los Angeles said it will use the donation to launch a program to distribute funds to entrepreneurs across the county.
LISC LA said the county is home to 1.3 million small businesses, close to 60% of which are “diverse-owned.” Research shows that non-white entrepreneurs face barriers to accessing the same startup capital, professional networks, and technical assistance as their white counterparts, according to the organization.
“Despite diverse small businesses being the cornerstone of Los Angeles’ economy, many remain under-capitalized and lack the support network for business growth,” said Tunua Thrash-Ntuk, executive director of LISC LA. “This incredibly generous gift from Wells Fargo will help LISC LA continue our efforts to close the racial wealth and opportunity gaps in our community and expand on our work to invest directly in diverse entrepreneurs and provide them with the necessary support they so often do not receive.”