Access to capital helps daycare owners grow their businesses and create childcare options for local working families
NEW YORK, NY – July 8, 2019 – Ascendus announced today that their Childcare Provider Initiative in New York has delivered over $1 million in capital to nearly 100 licensed childcare providers in the Bronx since October 2018. The program, which is made possible with catalytic support from Citi Community Development, empowers childcare businesses to grow their already invaluable impact on their communities, driving a triple bottom line through providing opportunity and stability.
The businesses offer affordable educational spaces for children and enable the parents of those children to participate in the workforce. Additionally, these predominantly female entrepreneurs are able to provide an income for themselves as well as rewarding employment opportunities for their community.
“The Childcare Provider Initiative is part of our organizational strategy to target and support women entrepreneurs in order to close the income and wealth gap they face,” said Paul Quintero, CEO of Ascendus.
The initiative is designed to reach groups who have few financial resources available: 97% are women, 97% belong to minority racial or ethnic groups, 63% consider English their second language; and 55% live in the South Bronx, one of the most impoverished counties in the country. The average loan size is $14,000 and 100% of these borrowers have used their loans to invest in the growth or expansion of their businesses.
“This is a poor community, yet we provide things to enhance these children’s lives. It doesn’t matter where they come from or what they face, it gives them a chance to be successful,” shared Elizabeth Galloway, Ascendus client and co-founder of O&E Childcare in the South Bronx.
The initiative provides Spanish-language outreach and one-on-one counseling to licensed childcare providers, paired with a new loan offering that connects eligible providers with funds in just 48 hours to sustain and grow their businesses.
“In its first seven months, the Childcare Initiative has made great strides in connecting eligible New York City childcare providers with the tools and resources they need to start and grow their businesses,” said Greg Schiefelbein, New York Tristate Director, Citi Community Development. “Through Citi’s collaboration with Ascendus on this program, we have seen how access to capital and multilingual outreach can transform local childcare businesses and help make entrepreneurial aspirations a reality.”
The Childcare Provider Initiative is part of Ascendus’ strategic plan to ensure that underserved populations have access to the resources and capital that will enable their businesses to grow and expand. Childcare is one of several key industries identified as Ascendus continues to scale its services to low-to moderate-income business owners across its geographic footprint.
Ascendus plans to expand the program across all of New York and establish it in various other markets along the east coast over the next two years.
Ascendus is a nonprofit small business lender working to create economic opportunity by providing entrepreneurs with access to the capital and the business support they need to create and grow healthy enterprises and contribute to thriving local economies. Since 1991, Ascendus has provided more than $200 million to 25,000 small businesses owners across the country. For more information, visit www.ascendus.org.