OAKLAND, Calif., May 3, 2018 /PRNewswire-USNewswire/ -- The Quality Jobs Fund, seeded with a $100 million charitable donation from the Federal Home Loan Bank of San Francisco, today announced a $3.2 million investment in Pacific Community Ventures, a nationally recognized CDFI that supports Bay Area small businesses.
Pacific Community Ventures (PCV) will leverage this investment into a projected $5 million of loans to small businesses that will create more than 5,000 jobs with median wages of at least $17 per hour. This capital will support PCV's integrated small business support model, which includes lending, mentoring, and quality-job-creating tools and incentives, as well as a robust impact measurement and management system.
Mary Jo Cook, PCV's president and chief executive officer, said that about one-third of the loans will be to small business owners in Alameda County, noting that small businesses need help to create the quality jobs that support families and communities.
"We cannot simply ask small business owners to create quality jobs without giving them the tools, mentoring, and roadmaps to do so in ways that support their overall business needs," Ms. Cook said. She added that their toolkit, Good Jobs, Good Business, provides examples, resources, and advice to help small business owners boost their bottom line by creating jobs that help them attract employees and improve retention, performance, and productivity.
"We are committed to helping small business owners create jobs that are good for their workers and good for their businesses," she said. "To support small business owners on this journey, we're experimenting with ways to incentivize small businesses to improve job quality. While we recognize there are limitations to how much this can change business behavior, we want to reward business owners that take steps to improve their workforce practices."
Rep. Barbara Lee (CA – 13) said she was "pleased" with the Quality Jobs Fund's decision to invest in Oakland's small business community. "Small businesses drive the local economy and are the engines of job creation," she said. "We must place small business owners at the front of our economic growth plans, and initiatives, such as this one by the Federal Home Loan Bank of San Francisco, can provide small businesses, especially women- and minority-owned businesses, with the support needed to grow and thrive."
FHLBank San Francisco seeded the Quality Jobs Fund with a $100 million charitable contribution to facilitate quality job creation, finance small business expansion, and support job training in its three-state district of Arizona, California, and Nevada, and in other communities nationally. The groundbreaking initiative will improve the wealth-building potential of working families, help generate future homebuyers, and serve as a catalyst for sustainable, long-term community development programs, especially those in underserved communities by supporting innovative programs that upskill low-income workers in vital industries and finance the expansion of businesses creating quality jobs.
Greg Seibly, president and chief executive officer of FHLBank San Francisco, said that fresh ideas were needed to increase the pool of potential homebuyers, and that our outreach determined that fortifying the financial security of working families would produce more home purchases.
"Our initiative hopes to provide quality jobs that can allow working families to purchase homes in safe, nurturing communities," he said. "FHLBank San Francisco began this process two years ago with discussions with business, workforce and training experts on what strategies best fuel successful job creation and small business expansion. It's exciting to move forward and support investments that will enhance the quality of life for working families."
The Quality Jobs Fund is administered by the New World Foundation. "We continue to be thrilled by the opportunity provided by the Federal Home Loan Bank of San Francisco to advance the Quality Jobs Fund initiative," said Colin Greer, President of the New World Foundation. "Over many years, the New World Foundation has worked in U.S. communities and learned that civic strength and the well-being of families is created by good jobs, decent housing, and investment in the future for families. Pacific Community Ventures is an exciting opportunity to advance that mission through investment in Bay Area communities, with a focus on women, minorities, and firms based in lower-income communities."
Crave BBQ in Oakland is one of the many business receiving investments from the Quality Jobs Fund through Pacific Community Ventures.
Opened by Chef Rashad Armstead in 2016 as a pop-up restaurant, it has hosted popular events like Warriors-watch parties and live concerts. After successfully testing his BBQ concept, Chef Armstead secured a location at 2608 Market Street in Oakland. Once the new location is complete, Chef Armstead plans to hire several new employees, offering medical insurance and key leadership roles. He will also offer internships to McClymonds High School, CiviCorps, and Beyond Emancipation. In turn, he plans to train and eventually employ the interns who successfully complete the Crave Internship Program.
"When you see me, you see every person that ever fought for their dreams, so I'm humbled to be in this place," said Chef Armstead. "With PCV's help I will continue to fight my way to the top, because I know there is a little kid that looks like me and came from where I came from and is looking at me and hoping that I make it so he or she will know that they can too."
Another business, DAD Services, is also typical of the types of small businesses funded by PCV. DAD Services is a janitorial company that aims to employ disadvantaged people. The company was established in 1998 by Donald Jacko and has always been a minority-owned, family-run business. DAD Services serves a diverse group of clients, including medical institutions, investigative services, and security companies at their various locations.
Lawrence H. Parks, Senior Vice President, Legislative and External Affairs, for FHLBank San Francisco, called it critically important to make investments that will expand quality jobs. "We understand that the health of a community depends on creating more quality jobs and increasing homeownership," he said. "That scenario gives residents a stake in the well-being of their neighborhood and a path to make their communities strong and sustainable."
About the Federal Home Loan Bank of San Francisco
The Federal Home Loan Bank of San Francisco delivers low-cost funding and other services that help member financial institutions make home mortgages to people of all income levels and provide credit that supports neighborhoods and communities. FHLBank San Francisco also funds community programs that help members create affordable housing and promote community economic development. FHLBank San Francisco members are headquartered in Arizona, California, and Nevada and include commercial banks, credit unions, industrial loan companies, savings institutions, insurance companies, and community development financial institutions.
About the New World Foundation
The New World Foundation, an endowed public charity, is committed to unparalleled national and global on-the-ground philanthropic expertise. Over the course of the Foundation's 64-year history, the Foundation has been a trusted ally for both its grassroots social justice work and its national civil rights policy efforts. Administering significant disbursement of charitable funds in 15 states, the Foundation is distinctly positioned to be nimble and flexible on the frontlines of innovative community change, make long-term mission-aligned investments, promote sustainability with both new projects and longstanding work, and serve as a hub for next-level program and community impact.
About Pacific Community Ventures
Pacific Community Ventures envisions a world of thriving communities where everyone has a fair shake. Our mission is to invest in small businesses, create good jobs for working people, and make markets work for social good. We achieve our mission through a combination of fair lending, free mentorship, skilled volunteerism, social impact measurement and management tools, and field-building research.
SOURCE FHLBank SF and New World Foundation