Business Consortium Fund, Inc. (BCF), a New York-based community development financial institution, has received a $200,000 grant from the Wells Fargo Foundation to expand its Capital Readiness Program (CRP), an initiative designed to help small business owners overcome barriers to affordable financing.
The grant, deployed over a 12-month program term, is expected to support small businesses across the country and unlock roughly $2 million in new lending — turning every $1 of grant funding into about $10 in loans — supporting job creation and revenue growth among participating businesses.
Addressing a Widening Credit Gap
The award comes as small businesses face a tightening credit environment. Bank lending standards for small firms have tightened for fourteen consecutive quarters, and according to the Federal Reserve's 2025 Small Business Credit Survey, only 42% of loan applicants received the full financing they sought, while nearly a quarter received no funding at all.
That gap has pushed many business owners toward costly alternatives. Merchant cash advances — structured as purchases of future receivables to avoid usury limits — now carry effective interest rates ranging from 70% to over 350%. The situation grew more difficult in June 2025, when the U.S. Small Business Administration eliminated the ability to refinance these advances, closing off a key path out of high-cost debt for many owners.
A Model Built on Coaching and Capital
BCF's Capital Readiness Program targets what the organization calls "Almost Loan Ready" businesses — companies declined for fixable credit issues despite clear growth potential. The program pairs a personalized 90-day plan of one-on-one coaching, financial education, and loan origination support — including assistance with loan application packaging for first-time borrowers — with a loan loss reserve that allows BCF to extend credit to higher-risk borrowers.
Participants targeted by the program typically generate $150,000 to $500,000 in annual revenue, employ fewer than ten people, and operate in cash-intensive industries such as construction trades, facilities services, logistics, catering, and niche manufacturing — sectors where a handful of contracts often drive the bulk of revenue. At least half of BCF's clients operate in CDFI Investment Areas.
Track Record of Impact
The grant builds on a partnership that dates to 2021, when a Wells Fargo-led recapitalization helped BCF grow its total assets from $4 million to $10 million. Since then, BCF has funded $13.5 million in loans to 80 growth-stage suppliers, creating 365 jobs and supporting 870 existing ones — with 41% of loans reaching low- and moderate-income borrowers.
Among the businesses BCF has supported:
- Jengo Facilities, a property and facilities management firm, received a Wells Fargo-funded microloan in 2021, followed by a line of credit and a term loan in 2024 that refinanced high-interest debt.
- The Cut Buddy, a Walmart-supplier grooming-products company founded by Joshua Esnard, turned to merchant cash advances above 350% APR during a tariff-driven cash crunch before BCF refinanced the debt into a conventional loan — one of the largest in BCF's history. The company was later featured on NPR.
- Lydia Painting, a Dallas-based, veteran-owned commercial coatings contractor led by Dr. Idowu Itiola, received a $300,000 term loan in 2024 and a $350,000 accounts receivable line of credit in 2025. The company has since grown revenue from $2.2 million to $4.54 million and expanded its headcount from 53 to 68 employees.
"This grant builds on our long-standing partnership with Wells Fargo Foundation and reflects a shared commitment to helping economically disadvantaged business owners avoid predatory lenders and access the capital they need to grow," BCF said in announcing the award.
