Building a more equitable Charlotte for small businesses

Wells Fargo’s $420 million donation to its Open for Business (OFB) Fund has provided a lifeline to small businesses struggling to recover after the pandemic. The initiative—channeled by more than 200 community organizations—has provided critical capital and technical assistance, empowering businesses in disadvantaged areas to not only survive but thrive.

The new crisis has prompted calls for additional support for struggling communities and small businesses in southeastern states. There are lessons from the recovery from the pandemic that apply to the devastation wrought by Hurricane Helen in North Carolina and other states. Wells Fargo immediately donated $1 million.

“We know the effects are still unfolding for many, and the aftermath will create a very dynamic situation,” Darlene Goins, head of philanthropy and community impact and president of the Wells Fargo Foundation, said in a press release. “We plan to monitor areas of difficulty to see how the bank supports long-term efforts.”

In that context, the OFB Fund laid the necessary foundation.

Beyond direct financial support, the Fund fostered a collaborative support ecosystem, strengthening the institutions that make up Foundation for the Carolinas. This assistance has helped entrepreneurs like Yssica Aguirre Pina, owner of Charlotte Salon and Spa, access critical resources and achieve their dreams of business ownership and expansion.

Capital, technical assistance and partnership

To help small businesses affected by the pandemic, the OFB Fund has provided critical support through flexible capital and technical assistance. Wells Fargo* has ensured that these resources reach communities in need by donating its $420 million Paycheck Protection Program (PPP) fee to the fund. Through 200-plus entrepreneurial support organizations and Community Development Financial Institutions (CDFIs), the Fund provides financial and advisory services, empowering small businesses to navigate challenges and grow stronger.

“Investment in underappreciated small businesses really pays off,” Goins said. The fund has catalyzed $2.1 billion in public and private investment and provided $1.4 billion in affordable loans, grants and loan modifications to struggling small businesses. The initiative prioritized disadvantaged communities and strengthened the capacity of supporting organizations to better serve their communities and help small businesses in the long run.

“We’ve really tried to improve businesses that have great needs and are often undervalued,” Goins explained. “Seventy-nine percent of businesses are racially and ethnically diverse. Seventy-two percent identify as low- and moderate-income. Fifty-three percent are women. Most of them are women of color.

Wells Fargo Fuels Economic Mobility in Charlotte

Tracy Russ, special advisor for civic initiatives at the Carolinas Foundation, leads the Beyond Open program, which is funded by Wells Fargo and has awarded more than $10 million in grants to small businesses in Charlotte. Beyond Open (known as Open for Business outside of Charlotte) has leveraged partnerships with CDFIs and community organizations to provide comprehensive support to disadvantaged entrepreneurs.

The Foundation’s program is committed to addressing financial instability. A 2014 study by Harvard economist Raj Chetty ranked Charlotte last among 50 major US cities in economic mobility. This grim statistic has inspired the foundation to prioritize economic growth and fostering opportunity, especially for historically disadvantaged communities. While Charlotte is not in last place, it still has work to do on its 38th ranking.

Beyond Open can help the city and its small businesses do just that. By concentrating resources in Charlotte, the program aims to create a more equitable distribution of capital and support. “We recognize that small businesses are catalysts for positive change in these communities,” Russ noted.

Central to Beyond Open’s success is its collaborative model. The foundation works closely with CDFIs and other community partners to provide not only funding but also technical assistance and guidance to small business owners. “We leverage the relationships of trust that CDFIs have built in these communities,” Russ explained. This partnership approach allows the Foundation to reach a wider audience and ensures that grantees receive the support they need to succeed.

The impact of Beyond Open extends beyond the direct benefits of grant funding. The program helped strengthen the capacity of CDFIs and other supporting organizations, creating a more robust and sustainable ecosystem for small business development in Charlotte. As the program enters its final round of funding, its innovative model offers valuable lessons for other communities seeking to promote inclusive economic growth.

To date, the Beyond Open program has awarded $10.7 million in grants to nearly 300 small businesses, 91% of which are owned by people of color and 60% of which are women-owned. The program created 229 new jobs and saved 730 existing jobs. Additionally, Beyond Open has helped small businesses increase their revenues by a combined $11 million.

Grants and Mentoring: A Success Formula for the Latina Entrepreneur

Yassica Aguirre Pina, a 32-year-old entrepreneur, is the proud owner of Chic Salon and Spa in Charlotte with her mother. The salon recently celebrated its seventh anniversary, marking a significant milestone in Aguirre Pina’s journey, which began with faith and a $20,000 loan from someone they knew.

Starting a business was not part of her original plan. Aguirre Pina had a steady corporate job with profits and no entrepreneurial experience. When her mother proposed the idea of ​​buying a small salon where Aguirre Pina would do facials and her mother would style hair, she resisted and then tested the waters. At first, she worked part-time, but quickly decided to quit her job and enter the world of entrepreneurship full-time. The first year was challenging, full of long hours and doubts about whether they were doing things right.

Determined to succeed, Aguirre took an active approach to learning Pina. She read books and sought guidance from Prospera, a nonprofit that provides small grants and other resources. “Prospera focuses on Latino entrepreneurs,” Aguirre Pina said. “They were instrumental in helping me sort out our finances and create a business plan.”

A turning point came when she received a $100,000 grant from Beyond Open, focused on helping minority companies facilitate business optimization with finance and marketing, thanks to the support of her mentor, Facilitator One Director Nidia Fonseca.

The grant allowed Aguirre Pina to continue with expansion plans. Initially, she considered moving the salon to a bigger location. However, as the business grew, she realized that having two locations was a good growth plan. Aguirre Piña bought his own commercial property, but the renovation turned out to be more challenging than expected. Unexpected expenses and the need for additional funds forced her to reevaluate her budget and seek more help and possibly a loan from the organization.

Despite these setbacks, Aguirre Pina said that with guidance, he is hopeful that he can overcome the obstacles and grow his and his mother’s business with their second location. She is committed to learning, networking and inspiring her siblings and other Latinas. “I want them to see that there are opportunities and not to be afraid to ask questions,” Aguirre Pina explained.

How are you asking for support from the entrepreneurial ecosystem in your community?