Investing in Local Organizations
Power Up Spartanburg makes $10M in loans, $665K in grants, available to small and minority businesses made possible by partnerships with three community development financial institutions
On a humid and hazy late-June evening, the hops-fueled scent of a craft brewery mixed with the sounds of conversations at beer hall-style tables ahead of the announcement of an unprecedented level of support for small and minority businesses across Spartanburg County.
Power Up: Funding, a Power Up Spartanburg program providing access to capital through exclusive loan and grant offerings, was announced during a special Professional Pours networking event at Ciclops Cyderi & Brewery, fittingly, a Spartanburg small business.
Through strategic partnerships with three community development financial institutions—Carolina Foothills Federal Credit Union, the CLIMB Fund, and the National Development Council—a $10-million loan pool and $665,000 in grant funding was made available to Spartanburg County’s small and minority businesses.
“Spartanburg County has for years led South Carolina in big business investment. Our community has a truly global economic reach,” said Allen Smith, OneSpartanburg, Inc. president and CEO. “But with support from our CDFI partners and Spartanburg County Council, Power Up: Funding is another step in solidifying our county as a premier destination for small business growth and investment.”
What Fuels The Work
Launched in March, Power Up Spartanburg is the county’s small and minority business development initiative, designed to reduce racial equity gaps in entrepreneurship, and to create a supportive environment for all small businesses.
The five-year initiative, made possible by $6 million in American Rescue Plan Act (ARPA) funds from Spartanburg County Council, focuses on access to capital and space, technical assistance, and social capital.
Power Up Spartanburg was inspired by data showing Spartanburg County was 3.7% below the national average in number of business establishments with 0-19 employees, and a staggering 30% below the national average in the number of Black-owned, non-employer businesses.
Spartanburg County councilmembers Monier Abusaft and Jessica Coker spearheaded the work to develop Power Up Spartanburg. In conjunction with the rest of the Spartanburg County Council, they determined that small and minority businesses should be as big a part of Spartanburg’s economic success story as industrial and global investments.
“One of the best things about Power Up Spartanburg is that it makes so many resources available to small and minority businesses,” Coker said. “Access to capital is just one component of this movement, but the other nine components will be just as impactful, including education and mentorship.”
What’s the
Funding Breakdown
Power Up Spartanburg’s Advisory Committee, led by Raj Patel, convened a group of business-finance experts who spent hours examining the financial resources that would bring the most impact to the initiative. Patel co-owns Cribbs Kitchen and The Kennedy, and owns Main Street Pub.
“We knew in order for this to be successful and as impactful for Spartanburg County as we knew it could be, access to capital had to be a major piece of the Power Up Spartanburg puzzle,” said Jay Jenkins, OneSpartanburg, Inc. director of small and minority business development.
Start-Up Loans, administered by The CLIMB Fund, are for small and minority businesses operating for less than two years. Up to $50,000 loans are available.
Existing Business Loans, administered by Carolina Foothills Federal Credit Union, are for small and minority businesses operating for two or more years. Up to $50,000 loans are available.
Existing Business Impact Grants are for small and minority businesses operating for two or more years who can display a need for financial assistance due to COVID-19 or other hardships.
Grant amounts are based on revenue. Businesses with $25,000 to $150,000 in revenue can apply for up to $5,000 in grant money. Businesses with $150,000 to $3 million in revenue can apply for up to $10,000 in grant money.
Of the loans and grants available, 30% will be reserved specifically for minority-owned businesses over the next two years.
“All the resources, above and beyond capital, provided by Power Up Spartanburg are designed to have a long-term impact on the small business community at large,” Councilmember Abusaft said. “However, we acknowledge the unique barriers facing minority-owned businesses and in particular Black-owned firms. Power Up Spartanburg, through funding and many other programs, will provide the additional support needed by minority-owned businesses. There’s never been a brighter future for those businesses here in Spartanburg County.”
Businesses that have filled out Power Up Spartanburg Intake Forms can apply to the respective CDFI for loan or grant funding opportunities.
What’s Next
The crowd at Ciclops Cyderi & Brewery on June 29 was vocally excited about the details of Power Up: Funding, but it’s important to note access to capital is only one element of the five-year initiative that is Power Up Spartanburg.
Already launched are events designed for small and minority businesses. Power Up: Dialogues shares the knowledge of an expert or small business success story, and Power Up: Workshops are seminars and training focused on key issues for small and minority businesses, such as how to build a business plan and how to handle HR.
A call-out for Community Captains has been sent, seeking representatives from Spartanburg County municipalities who will volunteer to be part of a contact and resource list for small and minority businesses, and help Power Up Spartanburg reach more of these businesses and entrepreneurs.
A pilot mentorship program, modeled after the renowned MIT Venture Mentoring Service, is underway pairing mentees with multiple, vetted mentors who work with small and minority business owners on their paths forward.
And work is progressing on two important programs of Power Up Spartanburg. One is designed to help small and minority businesses contract and connect with large employers to create transformational business growth. The other is building a list of vetted subject-matter experts who will be accessible to small and minority businesses across Spartanburg for free consultation.
“As a small business owner, I’m proud that Spartanburg has come together to make these kinds of resources a reality. It’s a testament to the dedication fueling Power Up Spartanburg,” said Patel, chair of the Power Up Spartanburg Oversight Committee.
Detailed information about each funding option and more information can be found at PowerUpSpartanburg.com/funding.
“The data behind Power Up Spartanburg showed our county, and South Carolina as a whole, sadly, we’re behind the national average in Black-owned, non-employee businesses, and small businesses overall. But in Spartanburg, we’re working to do something about it. This entire initiative is data-informed,” Smith said. “I believe with Power Up: Funding, combined with the other resources included in Power Up Spartanburg, that our county is poised to see significant progress and growth in our small business community.”
Success Stories
Since launching, more than 150 applications for loans and grants have been submitted by small and minority businesses, and entrepreneurs looking to get their big idea off the ground.
Here are some of the first funding recipients: On the grants side, 75 applications have been processed by the Power Up Spartanburg team, with the National Development Council processing 30 of those.
We Are the Light, a Black-owned business specializing in outdoor lighting and installation of low-voltage, LED fixtures was awarded a loan to help the company restructure its financials, and to help retain and add jobs.
A Salon & Spa, LLC, a woman-owned small business, was awarded a loan to expand its spa and relaxation services, provided to customers to build a sense of calm and reinvigoration.
BASIC Training & Event Center was awarded a loan to bolster the offerings available at its all-occasions event space in Wellford, including expanded children’s day-camps, educational trainings, and CPR sessions for children and adults.
