Starbucks initiative supports small businesses

10/18/2011

Starbucks recently showed its support for small businesses and community development financial institutions by donating $5 million in seed money to start the Create Jobs for USA program.

The coffee giant has teamed with the Opportunity Finance Network, which represents a nationwide group of 180 CDFIs that provide financing to community businesses in underserved markets that can't access traditional credit.

Beginning November 1, the initiative will begin accepting donations online and at nearly 7,000 Starbucks locations across the United States. Those who donate $5 or more will receive a red, white and blue wristband with the word "Indivisible" on it.

"We've got to thaw the channels of credit so that community businesses can start hiring again," said Starbucks chairman and CEO Howard Schultz. "Create Jobs for USA empowers Americans to help other Americans create and sustain jobs, with Starbucks and OFN as a catalyst and the Indivisible wristband as a symbol of our country's unity."

All of the donations will go toward OFN to fund additional small business loans. Bloomberg Businessweek adds that other notable brands including Goldman Sachs have also funded small business lenders in hopes of improving their reputations.