Wells Fargo has announced a $1.3 million grant to Ascendus through its Open for Business Growth initiative, a nationwide program designed to scale growth-ready businesses. The announcement was made on stage at the iHeartRadio New York's Z100 Summer Bash presented by Wells Fargo, where Wells Fargo Chief Financial Officer Mike Santomassimo shared the news alongside Ascendus Chief Executive Officer Paul Quintero.

The grant pairs $900,000 in capital with more than 200 hours of coaching for entrepreneurs and supports the creation or retention of more than 170 jobs. The philanthropic investment funds the Ascendus Path to Growth Program, which will work with small business owners in New York, Florida, Georgia and North Carolina over two years. Under the program, Ascendus will deploy $900,000 in loans and lines of credit to an estimated 45 entrepreneurs, deliver more than 200 hours of one-on-one coaching, and support business owners seeking to create or retain 170+ jobs. Ascendus is a nonprofit community lender formerly known as the Carolina Small Business Development Fund; it adopted the Ascendus name in 2021. Wells Fargo's Open for Business philanthropy began in 2020 as an effort to help small businesses—particularly diverse-owned firms—keep operating through the pandemic's economic disruption.

According to the announcement, what sets the program apart is what happens after the loan: capital opens the door, and coaching is what turns it into growth. Each borrower works through a roadmap built on the Ascendus FinHealth Score® and the Ascendus Borrower Index, with quarterly sessions aimed at three kinds of growth: growing revenue, growing from a first line of credit to a larger one, and, in time, growing from a nonprofit lender to a traditional bank. That bank-readiness pathway is well established in community development finance, where Treasury-certified Community Development Financial Institutions (CDFIs) — a category that includes Ascendus — operate in markets underserved by traditional lenders and work to prepare borrowers for mainstream bank credit.

Small business owners across these markets are building companies that need capital sized to their stage, the organizations noted. Ascendus works with them through loans of up to $100,000, lines of credit, and coaching focused on credit health and long-term financial confidence. Over the program's two-year timeline, the stated benchmarks — roughly 45 entrepreneurs served and 170+ jobs created or retained — will be the measures of its progress, as will whether borrowers advance from first credit lines to larger loans and, ultimately, to traditional bank financing.

"When capital is paired with one-on-one coaching, our initial loan becomes the first step in a client's financial journey, building momentum through a larger second loan and ultimately direct bank financing. That final step unlocks new capital for our clients while refinancing Ascendus' loans, allowing us to reinvest in the next generation of entrepreneurs and drive sustained small business growth. This $1.3 million grant from Wells Fargo will support 45 entrepreneurs across four states, helping them move from bank-ineligible to bank-ready, and from surviving to scaling. For Ascendus, this is financial ascension in action, and we are grateful to Wells Fargo for investing in the long-term growth and potential of small business owners." — Paul Quintero, Chief Executive Officer, Ascendus

"Wells Fargo's Open for Business Growth initiative is designed to accelerate the growth of businesses that line economic corridors and provide vital jobs in local communities. Ascendus is a leader in guiding entrepreneurs down the capital pathway with coaching matched to their needs. It's this blending of capital and coaching that is transformative for business owners seeking to reach the next level of growth." — Kimelyn Harris, Head of Business Growth Philanthropy, Wells Fargo

Source: GlobalFinTechSeries