Announces Launch of Ignite CDFI
The Chester County Economic Development Council (CCEDC) announced it was awarded certification as a Community Development Financial Institution (CDFI) from the U.S. Department of the Treasury after a rigorous, multi-year application process. This distinction recognizes CCEDC’s proven track record of delivering capital support and technical assistance to underserved businesses and entrepreneurs across the region, with a particular focus on minority- and women-owned businesses, as well as those operating in low-to-moderate income communities. In addition to this certification, CCEDC also received a $2 million grant from the Commonwealth through the Department of Community and Economic Development under the Highly Disadvantaged Business Assistance Program.
“When we set out on this journey, we understood the region’s unique capacity for developing successful new businesses along with the incredible need for financing these ventures,” said Jim Turner, member of CCEDC’s board of directors and Ignite CDFI advisory board chair. “Pennsylvania is actually third in the country for new business sustainability, with 56% of new businesses still open after five years.”
In the last two years, 92% of job growth in Pennsylvania came from very small businesses. During this time, CCEDC approved $13.4 million in loans across nine counties through the Pennsylvania Catalyst Loan Fund, with 96% of those loans funded to disadvantaged borrowers. Building on that foundation, CCEDC will now operate under the banner of Ignite CDFI, a newly branded regional initiative designed to expand its reach well beyond Chester County into eight other counties to fuel small business growth.
“Acquiring this certification is the culmination of years of deliberate work, earning the trust of businesses and entrepreneurs who needed us most,” said Mike Grigalonis, President and COO of the CCEDC. “Ignite CDFI will serve as a beacon to entrepreneurs and startups that don’t fit neatly into a bank’s lending criteria, with the federal recognition to back that up across the entire region.”
Ignite CDFI will include:
- The Pennsylvania Catalyst Loan Fund, a $22 million revolving fund developed in partnership with nine counties, which has already resulted in 549 jobs being retained and 419 new jobs created
- Business Resource Centers that serve entrepreneurs and small business owners with business coaching services free of charge. Currently, one business resource center operates in Coatesville, Chester County, and immediate plans are for new centers in Reading and Harrisburg, with further expansion across the nine-county region
- New Business Champion Grants, which provide grant recipients the opportunity to work one-on-one with professional service advisors to address their most pressing business needs. To date, 263 grants totaling $266,000 have been issued in cooperation with the County of Chester.
Together, these programs will form a continuum of support designed to meet the needs of businesses and entrepreneurs at every stage, from the earliest spark of an idea to securing capital for growth. Looking ahead, these grant funds available will allow:
- 300 professional services grants of $2,500 each
- Nine English as a second language (ESL) courses to be offered at employer sites
- $10,000 each, in 9 total counties, dedicated to workforce development programs
- $70,000 to prepare tech start-ups for angel investment
“Every day, we work with people who have a real vision for their business but just need someone in their corner,” said Chris McHenry, Vice President, Development Finance at the CCEDC and CDFI Manager. “Whether we are connecting entrepreneurs with the right advisor, helping to cover the costs of an attorney, or being that second lender when the bank reaches its limit, Ignite CDFI lets us do all of that at a scale we’ve never been able to achieve before.”
