VEDC News & Press Releases
|UBS Provides $5 Million in Alternative Financing for Small Businesses in Florida|
December 4, 2014 - UBS today announced the funding of a small business loan program through the Greater Miami Business Opportunity Fund (GMBOF), a lending vehicle for small businesses across the state of Florida. Located in Miami, FL, GMBOF will provide up to $5 million of alternative financing solutions for qualified existing small business owners seeking loans of $50,000 to $500,000. With small business representing 98.9 percent of all employers in Florida, GMBOF meets an important need for the state, as funding of this type is not currently readily accessible.
“Small businesses are crucial to our economic recovery and development. However, many of these businesses can’t get the loans they need for working capital to buy equipment or inventory, or to make tenant improvements,” said Allen Braithwaite, Vice Chairman, UBS Bank USA. “By providing these companies with access to the funds they need to grow and create jobs, UBS is helping not only these entrepreneurs succeed, but also their local communities.”
GMBOF is a nonprofit lender created by VEDC in partnership with UBS. VEDC, a Los Angeles based national business transitional lender and established Community Development Financial Institution, is expanding its national footprint into Florida, where it will provide support and training for Tampa-based Neighborhood Lending Partners (NLP); NLP has been operating in Florida since 1991, providing financing to affordable housing and community revitalization projects. GMBOF demonstrates UBS’s ongoing commitment to provide resources for small businesses positioned for growth and is part of UBS's Elevating Entrepreneurs initiative. Elevating Entrepreneurs is a joint undertaking of UBS Community Affairs & Corporate Responsibility, Americas and UBS Bank USA.
“VEDC has been the lender of last resort for many good companies that have struggled during the economic downturn and recovery,” said Roberto Barragan, President and CEO of VEDC. "We have successfully assisted small businesses in major metropolitan areas such as Los Angeles, Chicago and the New York Tri-State, and now we are able to bring capital and education opportunities to small business owners in Florida. The newly created Greater Miami Business Opportunity Fund will take advantage of our proven track record and is an innovative and affordable source of alternative financing.”
“We are proud to work with UBS and VEDC during a time when small business owners are facing disproportionate challenges in securing financing and resources,” said Debra Reyes, NLP president and CEO. “The goal of this partnership is to promote economic revitalization and business sustainability to family owned, retail and commercial businesses. At NLP, we are excited about the opportunities for education and access to capital this will bring to small businesses in the state of Florida.”
Through a separate $5.5 million multi-year grant, UBS is supporting VEDC's national expansion efforts. Alongside the $5 million in Florida, over $32 million in capital is now available for loans to small businesses in Connecticut, New York, New Jersey, California, Illinois, Nevada and Utah. To date, $11.8 million has been loaned to 57 small businesses, which has resulted in the creation or retention of over 1,430 jobs.
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Notes to Editors
About UBS AG
UBS draws on its 150-year heritage to serve private, institutional and corporate clients worldwide, as well as retail clients in Switzerland. Its business strategy is centered on its pre-eminent global wealth management businesses and its leading universal bank in Switzerland. Together with a client-focused Investment Bank and a strong, well-diversified Global Asset Management business, UBS will expand its premier wealth management franchise and drive further growth across the Group.
UBS is present in all major financial centers worldwide. It has offices in more than 50 countries, with about 35% of its employees working in the Americas, 36% in Switzerland, 17% in the rest of Europe, the Middle East and Africa and 12% in Asia Pacific. UBS employs about 61,000 people around the world. Its shares are listed on the SIX Swiss Exchange and the New York Stock Exchange (NYSE).
About UBS Bank USA
UBS Bank USA is a Utah industrial bank regulated by the Federal Deposit Insurance Corporation (FDIC) and the Utah Department of Financial Institutions. Based in Salt Lake City, Utah, UBS Bank USA offers FDIC-insured deposit accounts, as well as credit cards, mortgages and securities backed loans. UBS Bank USA is a wholly-owned subsidiary of UBS AG, one of the largest asset managers globally.
About UBS Community Affairs & Corporate Responsibility, Americas
UBS Community Affairs & Corporate Responsibility, Americas is dedicated to providing under-resourced, high-potential individuals with access, advice, and education to help develop more enterprising communities. This is achieved through signature philanthropic initiatives, strategic partnerships, local giving and employee volunteering. Signature philanthropic initiatives in the Americas include UBS NextGen Leaders and UBS Elevating Entrepreneurs which are aligned with the firm’s global focus areas of education and entrepreneurship.
About UBS’s Elevating Entrepreneurs
Entrepreneurship is one of two philanthropic focus areas for UBS; and through the firm's signature initiative, Elevating Entrepreneurs, as well as through strategic partnerships with national nonprofit organizations, UBS Community Affairs & Corporate Responsibility, Americas is committed to providing access to advice and opportunities to spur entrepreneurial growth and job creation. Through the initiative, UBS provides entrepreneurs with high-impact business mentoring, access to capital as well as education and networking opportunities to help them grow their companies and develop more enterprising local communities.
VEDC is a leading non-profit small business lender that is changing the way small business lending is done by making it more available, sustainable and impactful. As a national small business lender, VEDC has lent $360 million in direct and guaranteed loans to 100,000 small businesses and created more than 27,000 jobs. As a certified Community Development Financial Institution (CDFI), VEDC’s mission is to help create jobs and promote economic development in under-served communities. It provides loans and micro-financing options to small businesses, particularly those owned by women and minorities, that don’t quality for traditional bank financing. VEDC’s expanding portfolio is composed of community-based loan funds in Los Angeles, Chicago, San Francisco, Las Vegas, Reno, Salt Lake City, Miami and the New York Tri-State area. For more information visit www.vedc.org.
About Neighborhood Lending Partners
Neighborhood Lending Partners, Inc. (NLP) is a multi-bank lending consortium providing financing to developers of affordable housing and community revitalization. NLP is a non-profit Community Development Financial Institution (CDFI) and a Community Development Entity (CDE) servicing the state of Florida. The organization provides numerous governmental agencies various levels of loan and/or grant administration, assisting them in providing services and subsidy funds that serve low income targeted populations. NLP offers products, services and programs that were created to incentivize the private sector to invest in affordable housing and community revitalization including small business lending programs. All of which have set aside requirements for low income residents.