Charter Communications said Wednesday that its Spectrum Community Investment Loan Fund will invest $3 million in the Hope Enterprise Corporation (HOPE) to provide loans to local businesses that provide goods and services meeting the core needs of financially underserved areas in Kentucky, Tennessee and Alabama. 

About $1 million of that investment is earmarked for Kentucky communities within Charter’s footprint.

“Spectrum is an important part of every community we serve, and we are invested in the continued success of those communities across our footprint,” Charter SVP David Ellen said in a press release. “Small business ownership and growth are fundamental to developing and sustaining economic strength and our support to local businesses will provide access to much-needed capital allowing them to thrive. We are excited to be partnering with HOPE and investing in these Kentucky, Tennessee and Alabama communities.”

Charter said it is also providing a grant to support technical assistance for small business owners and other program costs. The investment is expected to be combined with additional capital from other sources and to lead to the creation of hundreds of new jobs in underserved communities throughout the three states.

“Small business is a vital source of jobs and services, particularly in low-income and minority communities,” HOPE CEO Bill Bynum said in a press release. “Unfortunately, too often, these communities and their residents lack access to traditional financial services.  Charter’s investment in HOPE represents a welcome step towards closing these long standing opportunity gaps.”

HOPE is a certified community development financial institution (CDFI) that helps more than 100,000 financially underserved people in the Deep South, providing access to affordable, financial products and services in Alabama, Arkansas, Louisiana, Mississippi and Tennessee.

Charter unveiled the investment at an event on Aug. 25 at the Norton Healthcare Sports and Learning Center in Louisville, where Kentucky Governor Andy Beshear said the program will positively impact financially underserved communities by providing growth capital, creating new jobs and strengthening businesses.

“Investments in our people like the one Charter is making will help us ensure that everyone in Kentucky takes part in the amazing economic momentum we are seeing week after week,” Gov. Beshear said in a press release. “Hope is the right name for this investment, as these funds help support the financially underserved by providing new opportunities that can ignite and sustain strong economic growth.”

Charter launched the Spectrum Community Investment Loan Fund in 2020 and has committed more than $18 million to invest in CDFIs to support small and minority-owned businesses in eco­nomically underserved communities within the company’s 41 state footprint. In addition to the loans, each CDFI receives a grant to fund technical assistance programs and professional training for small businesses to help establish sound business practices necessary for long-term growth and continuity. Some of these grants have recently been earmarked to support businesses impacted by COVID-19.

Charter Communications said its Spectrum Community Investment Loan Fund will invest $1 million in a North Carolina non-profit that helps small businesses in the state.

The Carolina Small Business Development Fund (CSBDF) is a nonprofit certified community development financial institution that makes low-interest loans to small businesses in Charter’s North Carolina service area. The investment is the latest in Charter’s more than $22 million commitment to help small and minority-owned businesses within its 41-state footprint.        

“Charter is an important part of every community we serve and we are invested in the continued success of those communities across our footprint,” Jeff Buller, Charter’s vice president overseeing the Spectrum Loan Fund said in a press release. “Small business ownership and growth are fundamental to developing and sustaining the economic strength of our communities. Our investment in the Carolina Small Business Development Fund and in other CDFIs supports small businesses by providing access to much-needed low-interest capital.”

CSBDF works to foster economic development in underserved communities by providing access to capital, business services, training and policy research. CSBDF works in partnership with many organizations to support North Carolina small businesses and entrepreneurs.

“On behalf of the board and staff of CSBDF, it is a privilege, an honor and a tremendous opportunity to work with Charter Communications to deploy capital to businesses throughout its extensive North Carolina coverage area. To partner with a Fortune 500 company that has demonstrated its commitment to North Carolina with its innovative connectivity products and services is in strong alignment with CSBDF’s mission to drive economic development in North Carolina through service to small businesses,” said CSBDF president and CEO Kevin Dick in a press release. “This will be a strong for-profit and not-for-profit collaboration that will pay dividends for North Carolina’s small businesses and the cities and counties where they are located.”

To date, the Loan Fund represents about $18 million of the more than $22 million Charter has committed to support small and minority-owned enterprises. The Spectrum Community Investment Loan Fund invests through CDFIs in businesses in eco­nomically underserved communities and has previously made $1 million investments in New York, Texas, Missouri, California, Wisconsin, and Ohio, a $3 million commitment to the National Urban League’s Urban Empowerment Fund, and $3 million in low-interest loans directly to CDFIs in partnership with and as directed by the National Action Network. 

In addition to the loans, each CDFI receives a grant to fund technical assistance programs and professional training for small businesses to help establish sound business practices necessary for long-term growth and continuity. Some of these grants have recently been earmarked to support businesses impacted by COVID-19.

The National Urban League said it has closed on a $3 million commitment from Charter Communications, funds that will go toward the organization's small business lending arm, the Urban Empowerment Fund.

The commitment is from Charter’s Spectrum Community Investment Loan Fund and will help the Urban Empowerment Fund become a certified community development financial institution (CDFI), which increases its ability to deliver capital to minority-owned small businesses in urban areas. Charter first said it would invest the funds last year. 

Charter’s $3 million commitment will be used to make loans to minority-owned businesses. The partnership also includes a $500,000 capacity-building grant for the Urban Empowerment Fund to expand staffing, infrastructure and operations. As a result of the grant and funding commitment, Charter has been designated the Founding Partner of the Urban Empowerment Fund by the National Urban League.

“As the Founding Partner of the UEF, Charter is a game changer in terms of our ability to support the small businesses that are the economic lifeblood and primary employers in struggling urban communities,” National Urban League President and CEO Marc H. Morial said in a press release. “The COVID-19 pandemic both revealed and exacerbated the racial gaps in access to capital for small businesses. With Charter’s support the National Urban League now is better positioned to deliver more funding, more quickly, for the businesses that were most impacted by the crisis.”

The Urban Empowerment Fund provides loans and coaching to minority-owned businesses, but without certification from the U.S. Treasury Department, it must currently work through other intermediary organizations. Certification is expected by the end of the year.  Currently, the Urban Empowerment Fund is providing intermediary loans to the National Development Council in support of their participation in the New York Forward Loan Fund.  Once certified, the Urban Empowerment Fund will begin providing direct loans to Black and other minority-owned businesses in tandem with select Urban League Entrepreneurship Centers, which are currently operating in 12 Urban League affiliate cities.

“Small business ownership and growth are fundamental to developing and sustaining economic power, which is critical to the long-term success of our communities,” said Charter chairman and CEO Tom Rutledge in a press release. “Building on our valued partnership with the National Urban League, these investments will not only support small diverse-owned businesses through access to much-needed low-interest capital, but also will assist the National Urban League in revitalizing the Urban Empowerment Fund to help build thriving communities across the country.”

Since the pandemic began early last year, 27% of minority-owned businesses were closed compared to 18% of other small businesses, according to the National Urban League, adding that even prior to the outbreak  Black-owned businesses were less likely to be approved for loans than their White-owned counterparts. And when they were approved, they received smaller amounts and at higher interest rates, the organization continued. 

“Many Black-owned small businesses were locked out of the Paycheck Protection Program because they didn’t have existing relationships with the large banks that administered it,” Morial said in the release. “CDFIs like the Urban Empowerment Fund are the most efficient and effective vehicle for getting these businesses the support they need.”

The Spectrum Community Loan Fund makes up about $18 million of the more than $22 million Charter has committed to date to support small and minority-owned enterprises in eco­nomically underserved communities. In addition to the $3 million commitment to the National Urban League’s Urban Empowerment Fund, the Spectrum fund has previously made $1 million investments in CDFIs in New York, Texas, Missouri, California, Wisconsin, and Ohio, as well as $3 million in low-interest loans directly to CDFIs in partnership with and as directed by the National Action Network. Each CDFI also receives a grant to fund technical assistance programs and professional training for small businesses to help establish sound business practices necessary for long-term growth and continuity. Some of these grants have recently been earmarked to support businesses impacted by COVID-19.

Charter Communications and the National Action Network said Monday that the Spectrum Community Investment Loan Fund has agreed to make a low-interest loan to Carver Bancorp, Inc. for $1.5 million to help minority and women-owned businesses.

Carver Bancorp is the holding company for Carver Federal Savings Bank, the largest publicly traded African and Caribbean-American managed bank in the United States. The investment represents the first stage of Charter’s previously announced commitment to invest $3 million directly in Community Development Financial Institutions (CDFIs) such as Carver, in partnership with NAN. In addition, Charter said it is making a $1 million long-term deposit in Carver as part of its pledge to support Minority Depository Institutions (MDIs). The $1.5 million in additional liquidity and the $1 million long-term deposit will enable Carver to increase its low-interest loan production to Minority- and Women-Owned Business Entrepreneurs (MWBEs).

“NAN’s partnership with Charter Communications to invest significant dollars in the Black community couldn’t come at a better time and will help ease the economic hits Black businesses have taken in the wake of the COVID-19 pandemic,” said NAN founder and president, Reverend Al Sharpton in a press release. “I’m especially proud to launch this on the day we honor Dr. King because his fight for racial equality included pushing for an economy that fostered financial growth and empowerment for Black people. This investment and the vital low-interest small-business loans it will fund will continue NAN’s work to achieve economic equality and support Black businesses and Black entrepreneurs.”

The Spectrum Community Loan Fund was formed in February 2020 to help businesses in financially underserved communities within its 41-state footprint. So far it has invested about $16 million in low-interest loans across the country. 

“Charter is an important part of the communities we serve and we are invested in their success across our footprint,” chairman and CEO Tom Rutledge said in a press release. “These investments in Carver, our continued partnership with Reverend Sharpton and NAN, and the $16 million being invested by the Spectrum Community Investment Loan Fund across the country, are making low-interest loans available to help strengthen diverse-owned small businesses and provide a lasting economic impact vital to the continued development and growth of these financially underserved communities.”

In addition to the $3 million being invested in CDFIs in partnership with NAN, the Loan Fund has previously announced $1 million CDFI investments in Pursuit Community Finance in New York, PeopleFund in Texas, the Economic and Community Development Institute (ECDI) in Ohio, Wisconsin Women’s Business Initiative Corp (WWBIC), the National Asian American Coalition in California,  and Justine PETERSEN in Missouri, and committed $3 million to the National Urban Leagues’ Urban Empowerment Fund (UEF). Charter also provides each CDFI with a grant to fund technical assistance programs and professional training for small businesses to help establish sound business practices necessary for long-term growth.

“We are very pleased to establish a partnership with National Action Network, Reverend Al Sharpton, and Charter Communications to support our mutual goal of economic recovery and growth with minority-led small businesses,” Carver Bancorp president and CEO Michael T. Pugh said in a press release.“ A $1.5 million cash commitment through a below-market-rate loan to our holding company and a $1 million long-term deposit at the Bank affords Carver the opportunity to continue supporting Minority and Women-Owned Businesses Entrepreneurs at a time when many businesses have been negatively impacted by the pandemic. On behalf of Carver and the communities we serve, I want to thank the National Action Network, Reverend Al Sharpton, and Charter Communications for this investment in MWBEs.”

Charter Communications said its Spectrum Community Investment Loan Fund has committed to invest $1 million in the National Asian American Coalition (NAAC) Community Development Financial Institution (CDFI), which will provide low-interest loans to small businesses in Charter’s California service area.

This is the latest investment by the fund as part of its $20 million commitment to support small businesses in financially underserved communities within its 41-state footprint.

“Charter is an important part of every community we serve and we are invested in the continued success of those communities across our footprint,” said Jeff Buller, Charter’s VP overseeing the Loan Fund, in a press release. “Small business ownership and growth are fundamental to developing and sustaining the economic strength of our communities. Our investment in the NAAC and in other CDFIs supports small businesses by providing access to much-needed low-interest capital.”

Related: Charter Doubles 2020 Digital Education Grant Commitment to $1M

The NAAC is a leading national Asian American nonprofit organization advocating for greater economic opportunities for individuals and businesses in underserved communities. NAAC’s CDFI offers California small businesses working capital to help owners restore, maintain, build or grow their business.

“There are countless families and small business owners under pressure from the financial burdens caused by the unprecedented pandemic restrictions,” said NAAC president Faith Bautista in a press release. “Charter’s investment in California’s disadvantaged neighborhoods is happening at a critical time in our history and will be a part of the stories of how some of these small businesses came back.”

In addition to the loans, each CDFI receives a grant to fund technical assistance programs and professional training for small businesses to help establish sound business practices necessary for long-term growth and continuity. Some of these grants have been used to support businesses impacted by COVID-19.

The Spectrum Community Investment Loan Fund previously announced $1 million investments in Pursuit Community Finance in New York, PeopleFund in Texas, the Economic and Community Development Institute (ECDI) in Ohio, and Wisconsin Women’s Business Initiative Corp (WWBIC), $3 million in the National Urban Leagues’ Urban Empowerment Fund (UEF), and an additional $3 million in low-interest loans directly to CDFIs in partnership with and as directed by the National Action Network (NAN). In the coming months, the Loan Fund expects to invest an additional $5 million in CDFIs in states served by the company including Florida, North Carolina, and Missouri.

Charter Communications said it will invest $10 million in a partnership with the National Urban League and the National Action Network to support Black and minority-owned businesses in underserved communities.

Charter’s Spectrum Community Investment Fund will invest $3 million in the National Urban League’s Urban Empowerment Fund, which will make individual loans to minority-owned small businesses. In addition, Charter will invest another $3 million in low-interest loans directly to community development investment funds (CDFIs), under the direction of the National Action Network.

Charter also will provide $3.5 million in PSA value to promote its partners’ Spectrum Community Investment Fund opportunities, and will contribute a $500,000 capacity grant to the National Urban League for revitalizing its CDFI platform including funding for staffing, infrastructure, and operations.

“In all communities, small business ownership and growth are fundamental to developing and sustaining economic power, which is critical to their long-term success,” Charter chairman and CEO Tom Rutledge said in a press release. “Building on our valued partnerships with the National Urban League and National Action Network, these investments will support small diverse-owned businesses through access to much-needed low-interest capital and help build thriving communities across the country.”

As the Urban League’s small business lending subsidiary, the Urban Empowerment Fund provides loans and coaching to minority-owned businesses that provide jobs and revenue to economically distressed areas and other underserved communities.

"Small Black-owned businesses, a primary economic driver in Black neighborhoods, are less likely to be approved for loans than their White-owned counterparts, and when they are approved, they receive smaller amounts and at higher interest rates,” said National Urban League CEO Marc H. Morial in a press release. “As we face the most daunting economic landscape since the Great Depression, committed and enlightened partners like Charter are more valued than ever before. Charter is helping the National Urban League build stronger and more stable communities that create opportunity for prosperity."

Charter launched the Loan Fund in February, committing to invest an initial $10 million in capital by the end of 2021 by making low-interest loans through CDFIs to small businesses whose goods and services help meet core needs in underserved communities within Charter’s 41-state operating footprint. With the addition of the investment partnerships with the Urban League and NAN, Charter’s Loan Fund commitment has increased to $13 million, and the Urban Empowerment Fund investment represents the fourth made by the Loan Fund in the past four months. Charter previously announced $1 million investments in Pursuit Community Finance in New York, PeopleFund in Texas, and the Economic and Community Development Institute (ECDI) in Ohio. Over the next year, the Loan Fund expects to invest an additional $4 million across CDFIs in California, Florida, North Carolina and Wisconsin, in addition to the $3 million into CDFIs as directed by NAN.

In addition to the loans, each CDFI receives a grant to fund technical assistance programs and professional training for small businesses. These grants have recently been made to provide support to businesses impacted by COVID-19.

“In order to achieve the economic equality we want to see, we need to support our Black businesses and our Black entrepreneurs,” said NAN founder Reverend Al Sharpton in a press release. “For too long, our talented Black communities have been deprived of low interest loans, capital and a myriad of resources to help Black businesses thrive and prosper, a reality that has lasted decades inhibiting us from playing and competing in a level playing field. This partnership is one more step to address the systemic scarcity in our communities and to underscore much needed investment to turn the tide of inequity.”

News of the investment comes on the same day that Comcast settled a $20 billion lawsuit brought by Entertainment Studios chairman and CEO Byron Allen and the National Association of African American Owned Media in 2015, claiming Comcast conspired to keep African American owned networks off its systems. Allen has a similar active $10 billion suit against Charter, filed in 2016, that claims carriage discrimination.   

Charter Communications said its Spectrum Community Investment Loan Fund has made a $1 million investment in the Economic and Community Development Institute, an Ohio community development lender aimed at helping small businesses.

In addition, Charter said Jeff Buller, the Charter executive overseeing the Spectrum Loan Fund, has been named to ECDI’s board of directors.

“Charter is investing in the communities in which our customers and employees live and work, and we are excited to be partnering with ECDI in Ohio,” Buller said in a press release. “In order to provide a complete funding package to ECDI, Charter is investing capital that will become small business loans, as well as providing grants that will be used to provide assistance to and training for small business owners. I look forward to serving on the ECDI Board and being part of the great work it is doing to support small businesses in Ohio.”

Charter launched the Spectrum Loan Fund in February, pledging to invest $10 million in capital by the end of 2021 by making loans of up to $1 million to community development investment funds (CDFIs) in its footprint.

“We are grateful for our partnership with Charter and its investment in Ohio’s small businesses,” said Inna Kinney, ECDI founder and CEO in a press release. “It will enable us to provide much-needed capital, incubation services and technical assistance to the businesses that need it most, as they deal with an altered environment in the face of the COVID-19 pandemic. Charter’s investment helps us sustain underserved communities’ access to jobs and demonstrates both ECDI’s and Charter Communications’ commitment to supporting local economies.”

This is the third investment the Spectrum Loan Fund has made in the past three months.

Charter previously announced $1 million investments in Pursuit Community Finance in New York and PeopleFund in Texas. Over the next year, the Spectrum Loan Fund expects to invest an additional $4 million across CDFIs in California, Florida, North Carolina and Wisconsin.

Charter has said it hopes its $10 million commitment will serve as an anchor investment that will lead to additional third party commitments for the small business community. The company said its investments in New York, Texas and Ohio are expected to be combined with an additional $12 million in total capital from other sources and to lead to the creation of hundreds of new jobs in underserved communities throughout those states.

Charter Communications said Thursday that it has teamed with investment banks to create the Spectrum Community Investment Loan Fund, focused on making loans through community development financial institutions (CDFIs) to small businesses that help meet core needs in underserved communities within its 41-state footprint.

The fund will invest $10 million in capital by the end of 2021 and will make loans of up to $1 million to each CDFI. In addition, Charter said it will provide each CDFI with a separate additional grant for extra training and The Loan Fund will invest $10 million in capital by the end of 2021, making loans up to $1 million to technical expertise.

Charter has engaged Cabrera Capital Markets, a diverse-owned investment bank based in Chicago, to spearhead the due diligence process on the Loan Fund’s first three CDFI investments. Cabrera Capital Markets has partnered with the Local Initiatives Support Corporation (LISC), one of the nation’s largest CDFIs, to supplement its CDFI underwriting capabilities.

Siebert Williams Shank & Co. and CastleOak Securities, L.P., two other diverse-owned investment banks, will provide due diligence support and related advisory services on its future CDFI investments.

“Charter is committed to having a meaningful impact in the communities where our customers and employees live and work, and the Loan Fund is the latest Spectrum Community Impact program designed to do just that,” Charter chairman and CEO Tom Rutledge said in a press release. “Through these investments in local small businesses, Charter will positively impact financially underserved communities by providing growth capital, creating new jobs and strengthening businesses.”

During the first half of 2020, the Spectrum Community Investment Loan Fund will invest $1 million in Pursuit Community Finance (formerly known as the Excelsior Growth Fund) in New York, and $1 million in PeopleFund, a CDFI based in Texas. The Loan Fund also expects to invest $1 million in an Ohio-based CDFI later this year. By the end of the first quarter in 2021, the Loan Fund program plans to invest an additional $4 million, collectively, in selected CDFIs in California, Florida, North Carolina and Wisconsin. The initial $7 million investments will be in states comprising 70% of Charter’s more than 29 million customers.

“Pursuit welcomes the Charter investment, which will help catalyze responsible lending to neighborhood small businesses in communities throughout New York State,” said Pursuit Community Finance president Steve Cohen in a press release. “It is noteworthy to have a public company express a commitment to community lending alongside our more typical bank investors.”

Charter said it hopes its $10 million commitment will serve as an anchor investment that will lead to additional third party commitments for the small business community. The cable operator said its $3 million phase one investment in New York, Texas and Ohio is expected to be combined with more than $12 million in total capital from other sources and lead to the creation of hundreds of new jobs in underserved communities throughout those states.

“It is a true honor for PeopleFund being selected by Charter to be part of this initiative and we applaud their commitment in support of CDFIs to help our most vulnerable communities,” said Gustavo Lasala, president and CEO of PeopleFund. “Each dollar that Charter invests in a CDFI has a multiplier effect. We will leverage each dollar from Charter with four dollars from other sources for a grand total of $5 million to be invested in small businesses throughout Texas. This will have an enormous positive economic impact in the communities where these businesses operate by creating hundreds of jobs and helping hundreds of families achieve financial stability and independence.”