Skip to page content

Read more

Stay up to date with our work:
02 Aerial Corner dusk

Read our Founder's letter here

Arist Relief Cover

WAVES by Vicios Ocultos for the Artist Relief Fund

Stay up to date with our work:

Insights

Insights

How Microloans make a difference

The need

Female business owners and entrepreneurs of color have difficulty getting access to the capital they need to grow.

The response

The LiftFund’s Dream Makers Fund, a revolving microloan fund for entrepreneurs.

Small businesses need capital to grow. Yet despite the growth of female-owned businesses—the number of women-owned businesses increased 21% between 2014 and 2019—women entrepreneurs are offered smaller loans across the board and pay higher interest rates than men. The loan market for entrepreneurs is so tilted that women ask for roughly $35,000 less in financing than men, per Fundera. White men have easier access to capital. Loans, even those provided through the Small Business Administration (SBA), can be a maze of paperwork and red tape. The LiftFund is trying to change that.

Launched in 1994 in San Antonio, LiftFund helps secure financing in 14 states with one simple goal: to level the financial playing field and give entrepreneurs the capital, education, and resources they need. The organization works across all sectors of the economy, providing financing options—through the SBA, community lenders, foundations, and traditional banks—and technical support to entrepreneurs with limited access to resources.

The Hostetler / Wrigley Foundation saw an opportunity to help lift up local, diverse small businesses through LiftFund’s Dream Makers Fund. “The Dream Makers Fund is working to break down systemic barriers many small business owners face by giving money and resources to those who have long been shut out,” Hostetler/Wrigley Foundation president Sue Hostetler says. “This aligns with exactly what we’re trying to do at the foundation: create opportunity for female- and minority-owned businesses through microfinancing.”

The fund is a revolving business loan fund that extends lending to owners who typically are not able to secure capital. When the loans are repaid, the capital is redistributed to new small business owners. This structure creates a constant loop of money loaned and repaid, meaning that the Hostetler/Wrigley Foundation’s $100,000 donation will result in measurable and meaningful impacts on small businesses for years to come.

And the LiftFund not only helps entrepreneurs build their businesses, it also helps their communities thrive. Every dollar loaned to a small business through LiftFund produced $14 in economic activity in their community, per the LiftFund’s 2017 economic impact report. Th Hostetler / Wrigley Foundation and the LiftFund’s Dream Makers Fund can make a big difference for small business



LiftFund’s client roster is diverse: nearly 55% identify as Hispanic and 22% as African American.

Through the end of 2020, LiftFund had made 23,445 loans to the tune of nearly $369 million for small business owners.

Lift Fund Tagline Cover 2jpg

Entrepreneurship transforms families