Small businesses are key to our economy, significantly contributing to job growth and income in the U.S. According to the U.S. Small Business Administration (SBA), more than half of Americans either own or work for a small business, and they create about two out of every three new jobs in the U.S. each year.
Community Development Financial Institutions (CDFIs) and Community Development Entities utilize the CDFI Fund’s various programs to finance small businesses and support entrepreneurship and job creation in underserved communities nationwide. Since 2009, CDFI Program awardees have originated 88,173 small business loans* totaling $3.28 billion. The New Markets Tax Credit Program has also provided funding for 691 projects for small businesses totaling $276,501,094 since Fiscal Year 2003.
In recognition of National Small Business Week and to highlight how CDFIs and CDEs help create and sustain small businesses, CDFI Fund Director Annie Donovan visited Rito Loco, a food truck to store front success story, and their CDFI partner, the Latino Economic Development Center (LEDC), both of which are based in Washington, DC.
Danny Diaz and Louie Hankins started Rito Loco in 2012 (Rito is short for burrito). After a wildly successful ride with the food truck, the two partners decided to open a brick-and-mortar location in Washington, DC’s Shaw neighborhood in August of 2015. In September of 2016, Dan and Louie approached LEDC for support to expand the restaurant and make other capital improvements.
Bill Luecht is the Senior Advisor for Legislative and External Affairs at the CDFI Fund.
*The CDFI Fund utilizes the FDIC’s definition of small business loans across all its program. Small business loans are defined as business or micro loans under $1 million.