Impact
Innovation
Inclusion
Growth

In 2022, Ascendus focused on four key strategies to address the new challenges of our small business owners:

• Impact: Shifted from just access to capital to include improved financial health to increase our positive impact on clients
• Inclusion: Increasing inclusion for those most affected by the pandemic
• Innovation: Innovating new offers to address the new challenges, and
• Growth: Growing the organization through collaboration, inclusion, and innovation.

The shift to financial health reflected our understanding that financial inclusion was no longer enough. More than ever, our clients needed to be financially healthy, which we define as being resilient and able to access opportunities over time. To measure financial health, we spearheaded a new impact measurement framework to longitudinally measures our clients' progression across credit, cash flow, and financial health indicators. We are implementing the framework in 2023.

One lesson from the last two years is that the pandemic disproportionately and adversely impacted communities of color. For this reason, we increased the inclusion of women and entrepreneurs of color in our lending work. In 2022, Ascendus lent 78% of the capital made available to entrepreneurs of color, mostly Black and Latin American.

We innovated and launched three new offers to address the new challenges faced by small business owners.

• First, we launched our "Line of Credit Program," a revolving, evergreen capital solution that provides access to capital when needed.
• Second, we launched our "Rideshare Program," a unique solution for self-employed entrepreneurs offering delivery and transportation services, a group traditionally denied capital.
• Finally, we launched the "Get Ready" Line of Credit Program, focused on Black business owners who would otherwise not qualify by providing a small line of credit that grows 10x within six months and can increase FICO credit scores by up to fifty points. The goal is to help Black business owners "get ready" to access significant future capital.

Ultimately, Ascendus grew its mission. In 2022, we:

• Increased the capital deployed for small business owners to over $38.4 million (over twice our pre-pandemic level)
• Increased our loan portfolio serviced by 52%
• Increased our net assets by $4.4 million.

"My barn having burned down, I can now see the moon," wrote Mizuta Masahide, the 17th-century Japanese poet and samurai. Despite the infernal effects of the pandemic on business activity, followed by rising rents, inflation, increased interest rates, and labor shortages, our small business clients continued looking upward and forward to remain hopeful and resilient. Ascendus was lockstep behind them, guiding clients on their journeys.

Our vision of "financial ascension for all" served as our moonlight during the long, dark pandemic storm. Our strategic focus on impact, inclusion, innovation, and growth met the day's needs. With your continued support, we hope to continue adapting to future challenges as we guide our clients and our organization, 'This Way Up!'