NEWARK, N.J. - Underscoring the importance of expanding access to capital for small business entrepreneurs, U.S. Senator Robert Menendez announced a $300,000 grant from U.S. Treasury Department's Community Development Financial Institution (CDFI) Fund to The Intersect Fund, a New Brunswick based CDFI which will expand their lending to more small businesses throughout the State.
"I'm proud to announce this investment in The Intersect Fund and its successful mission as a community-based microlender, which is injecting new life in our local economies," said Menendez, who has been a leader in the Senate in funding the Community Development Financial Institutions (CDFI) Fund. "More importantly, I'm proud to highlight small business entrepreneurs like Heidy who, with the help of these loans, are turning their dreams into reality, creating jobs and renewing our neighborhoods."
During a press conference at GlassRoots, a nonprofit glass-blowing studio that works with at-risk youth in Newark, Heidy Aviles, co-owner of the Columbia English Institute in Newark talked about how a loan of $10,000 from The Intersect Fund made it possible for her and her partner to refinance a predatory loan used to start their businessand reduce their interest payments by 94%. That has enabled the school to grow and generate income, which has resulted in the creation of 9 new jobs in Newark this year.
At the event, Capital One Bank also announced a $200,000 investment in Intersect. The bank provided a $100,000 grant to support the Fund's investment in measurement and evaluation systems, as well as to advance its work with college-aged entrepreneurs. Capital One Bank also provided a $100,000 loan to support The Fund's strategic growth. Additionally, Ross Cohen, Senior Director at Capital One, recently joined The Intersect Fund's board of directors.
"Capital One is committed to investing in local small business and workforce development initiatives through partnerships with organizations like The Intersect Fund that generate economic opportunities for the individuals, families and communities throughout New Jersey," Cohen said. "The Intersect Fund has accomplished impressive results since its founding, and I'm thrilled to join the board as the organization expands to support more New Jersey-based small business owners. On behalf of my colleagues at Capital One, we congratulate The Intersect Fund team on this financing milestone and look forward to further collaboration in the future."
"Today is a great day for entrepreneurs in New Jersey," said Rohan Mathew, executive director of The Intersect Fund. "We work with the smallest, budding entrepreneurs and meet them at their home or place of business. With a lending process that is both high-touch and high-tech, The Intersect Fund is able to provide great customer service and a ladder to the mainstream financial system for hundreds of people."
The new investment will allow The Intersect Fund to expand statewide, accepting loan applications from any small business located in New Jersey. It will also allow the Fund to raise its maximum loan size from $10,000 to $20,000. Since 2009, The Intersect Fund has lent more than $310,000 to 175 entrepreneurs with a repayment rate of 98% and has doubled its loan volume each year. The Fund anticipates investing $1 million in small business startup and expansion over the next 2 years, creating 300 new jobs.
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