The current economy is making it more difficult for Alabama small businesses to obtain capital to start or grow their businesses. In fact, many even argue that the lack of funding is one of the factors holding back the economic recovery.
In addition to traditional loans, Alabama small businesses often look to other opportunities, ranging from grants and bonds to investor-based venture capital. But have you ever thought to look to your fellow coffee drinkers?
According to a recent MSNBC article, coffee giant Starbucks is partnering with the non-profit Opportunity Finance Network, a national network of 180 community development financial institutions (CDFIs) that provide loans to businesses in low-income communities. As part of the collaboration with OFN, customers can donate money online or at some 7,000 Starbucks locations nationwide. This money is then used to fund loans to small businesses at CDFIs.
Starbucks claims the $5 million it provided to kick off the campaign, when combined with the $1 million already raised, will create up to $42 million in loans to small businesses. The collaboration was the brainchild of Howard Schultz, the chairman and CEO of Starbucks. He considers the program a “peer to peer job creation program,” citing economic studies showing that small businesses tend to create jobs.
“If you look at research and job growth that is taking place, small businesses are really driving the new positions that are being created,” said Olson. “If you are going to try to add jobs, we felt that the place we could make the biggest impact was in the small business community.”
How We Can Help
If you are looking to start an Alabama small business this year, it is advisable to consult with an experienced business attorney. In addition to helping you explore financing options, we can help you draft a solid business plan, register you business with the Secretary of State, and address any other legal issues that may impact your business.
Rutledge & Yaghmai is a full service litigation firm that offers more than fifty-seven years of diverse legal experience. The attorneys of Rutledge & Yaghmai leverage that experience to assist large and small businesses throughout Alabama in achieving their business goals while minimizing their risks.
In addition to offering transactional business services such as Alabama business formation and planning, Rutledge & Yaghmai prides itself on the diversity of Alabama business litigation cases it has handled successfully.
To learn more about the wide range of transactional and business litigation services we offer Alabama businesses, please contact the attorneys of Rutledge & Yaghmai today.
