Starbucks Coffee Co. is teaming up with a group of community financial development agencies to raise money to loan to small businesses to create or retain jobs.
In an announcement today, the Seattle-based coffee company said it will pool donations from Starbucks customers, employees and concerned citizens to raise money for the Create Jobs for the USA program.
The donations will go to the Opportunity Finance Network, which represents 180 community development financial institutions that provide loans to businesses in under-served markets where it is difficult to get credit.
All of the money raised will be used to fund loans to small businesses, micro-enterprises, nonprofit organizations, commercial real estate and affordable housing.
Every $5 raised will be leveraged to provide $35 in loans to the community. OFN’s models show that one new job will be created or retained for every $21,000 in loans. In other words, by their estimate, for every $3,000 in donations, one job will be created or retained.
Starbucks will seed the project with a $5 million donation from the Starbucks Foundation.
“Small businesses are the backbone of America, employing more than half of all private sector workers — but this critical jobs engine has stalled,” said Starbucks CEO Howard Schultz. ” We’ve got to thaw the channels of credit so that community businesses can start hiring again.”
OFN will begin accepting donations Nov. 1 online at www.CreateJobsforUSA.org and at Starbucks’ nearly 6,800 company-operated stores. Everyone who donates $5 or more will get a red, white and blue wristband with the word, “Indivisible” on it.
So tell us … Do you think this campaign will help with jobs?
Want the latest on O.C. jobs? Text OCRJOBS to 56654 to get free O.C. job news alerts.
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