Starbucks is going to be injecting a large amount of cash into the local economy. The US coffeehouse chain revealed that it will be giving $10m to the economy to support local development in an endeavor to propel economic expansion and new business owners. This will be put primarily into the more underserved regions.
It is anticipated that at least 500 loans will be financed through this $10m donation. Four community leaders will be given the money: Accion Chicago, Chicago Community Loan Fund, the IFF and the Local Initiative Support Corporation.
As well as money, those taking the loans will be given guidance, assistance, logistical/technical training, etc. Kevin Johnson, CEO of Starbucks explained:
“We believe the pursuit of profit is not in conflict with the pursuit of doing good. This sustained investment will provide borrowers who often face barriers with access to capital and mentorship to grow their business and create more jobs in Chicago.”
This is not the first time Starbucks has given generously to bolster the economy and help the impacts of the recession. In 2011 – in conjunction with the Opportunity Finance Network – invested $5 million in its Create Jobs for USA initiative raising $15 for community lenders nationwide.