Loans purchased by CornerSquare Community Capital will be required to meet the following characteristics:
The CDFIs will offer varied loan products with minimum loan amounts as low as $5,000.
The loan must have been originated by an approved CDFI to participate in the program.
The underlying small business/borrower must be at least 50 percent owned, controlled, and operated by residents of the United States who are one of following:
- African American, Latinx, Native American, or Asian
- Low-to-moderate income
- Operate in a low-to-moderate income census tract
Loans not meeting one of these characteristics will not be purchased by CornerSquare.
Absolutely. To obtain CDFI status, an organization is required to originate 60 percent of its loans to borrowers that meet the criteria that will be used by CornerSquare Community Capital. So, while CornerSquare has a narrower focus, the participating CDFIs will actively seek and provide financing to borrowers who do not meet the criteria for this program.
CornerSquare Community Capital will not be working directly with entrepreneurs. CornerSquare is launching to provide support and additional resources to lenders that are already active. Small businesses interested in applying for loans may contact the CDFI partners directly for more information.
Each participating lender has existing loan products, each with their own set of guidelines for how their individual loans can be used. CornerSquare Community Capital supports lenders in making loans, but the administration and oversight of individual loan transactions is managed by the participating CDFI.