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Uncategorized November 7, 2024

Empowerment Small Business Loan Program Shares Success Stories

Fueling dreams for women and minority entrepreneurs through the Empowerment Small Business Loan Program

Old National hosted three receptions in the Chicagoland market for the Old National Empowerment Small Business Loan Program in August of 2024, when a wide variety of local small businesses were invited to learn about the program’s impact from Roland Shelton, Chief Strategic Business Partnership Officer; Monica Rubio, Community Lending Market Executive, Market President; and other program advocates.

The Old National Empowerment Small Business Loan Program addresses the pressing need for increased access to capital for small businesses, notably those with minority and women ownership. Since its launch in 2023, the program has approved $45 million in loans, with 37% of those assisting Chicago small businesses.

"The Empowerment Small Business Loan Program is more than just a financial initiative; it's a transformative opportunity to uplift and support the diverse communities we serve,” Shelton says. “By providing access to capital and fostering partnerships, we aim to create a lasting impact that benefits everyone involved."

The three receptions were held in partnership with organizations that focus on small business support: the Aurora Regional Hispanic Chamber, Allies for Community Business in Chicago, and the Northwest Indiana Small Business Development Center (ISBDC) in Northwest Indiana.

Empowerment Small Business Loan Program: Evidence of Success

Monica Rubio, Empowerment Small Business Loan Program"The success stories we've witnessed through the Empowerment Small Business Loan Program demonstrate the significant impact that access to capital can have on the growth and sustainability of small businesses,” Rubio says. “We're proud to support the dreams of these entrepreneurs and contribute to the economic vitality of the areas we serve."

Success stories shared during the meetings included:

  • In Chicago, Spurlock & Sons, Inc., shared how the Empowerment Small Business Loan Program and Allies for Community Business turned their vision into a reality. Now, the business can bid and secure up to $1 million contracts versus smaller contracts.
  • In Northwest Indiana, Dr. Mariah Paine shared her story regarding her company, Agape Chiropractic. Paine is the owner of her own practice through the Empowerment Small Business Loan Program after previously being told “no” from the bank she had been with since the age of 13.
  • In Chicago, Silver Spoon Desserts shared that the Empowerment Small Business Loan Program helped save them $68,000 annually, and provided the opportunity to finance new equipment that enabled them to acquire three new large contracts.

Empowerment Small Business Loan Program Loan Growth and Impact

An additional indicator of program progress is the minimal number of loans that have defaulted or are in distress since the program’s launch. The Empowerment Small Business Loan Program boasts a pull-through rate of 76.6%.

Old National intentionally fostered the program to meet specific needs of small businesses while supporting economic growth, creating jobs, and increasing economic equity in the underserved communities in Old National’s Midwest and Southeast footprint. The loan range of $25,000 to $5 million is both unique and significant to the small business community in:

  • Accessible Entry Point -- The program is accessible to smaller businesses and startups that may not ordinarily quality for large loans above Old National’s lower end of $25,000.
  • Growth Potential -- As businesses grow and expand, financial needs may change and increase. The program accommodates business growth with loan offerings up to $5 million.
  • Addressing Financial Gaps -- Traditional lending may not properly serve small businesses with limited collateral or revenue. The program fills the gaps in providing capital for growth, investments, and operations.
  • Flexibility -- Businesses are encouraged to choose financing options with flexibility and customization to best suit their needs and circumstances.

Providing Unique Banking Solutions for Small Businesses

Traditional underwriting guidelines aim to protect banks from undue credit risks, regularly overlooking mitigating facts that impact minority and women business owners. Borrowers may not fulfill all traditional underwriting criteria because of historical limitations on access to credit, depressed asset valuations, or other economic challenges.

Instead, the program shows Old National’s commitment to increasing funding to help minority- and women-owned small businesses get off the ground and thrive. Old National believes in showing up for our communities, just one of the ways we’re helping small businesses succeed in the communities where we live and work.

To learn more, visit Empowerment Loan Program | Old National Bank for eligibility requirements, loan types, or to connect with our lending team.

* All loans subject to credit approval. If the security interest is property, property insurance will be required. Minimum loan amount for this program is $25,000. Loan Sponsor/Guarantor must be a U.S. citizen. Additional program qualifications or restrictions may apply.

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