Amid California’s booming entrepreneurial landscape, a transformative financial force has emerged. this force is known as TMC Community Capital, Removes traditional lending practices and associated hassles. Its innovative approach to approving loans and supporting small businesses—especially those owned by women, operating in low-income, and underserved communities—offers a breath of fresh air to the financial world .
TMC Community Capital is a different breed of financial institution. It does not consider only credit score and collateral, as traditional financial institutions and major banks usually do. Instead, TMC CC’s innovative approach focuses on the individual, the business and the wider community, providing resources and capital previously unavailable to many of these entrepreneurs. This approach has earned them a respected status as a CDFI-approved organization, and they have received funding from major institutions such as US Bank, Capital One, and Wells Fargo. “Innovation and community are at the heart of everything we do. We build services with the community, not just for the community,” explained Daniel Fernandez, CEO.
The Role of a CDFI: Bridging the Economic Divide
TMC Community Capital’s ability to think outside the traditional lending box is due to its status as a Community Development Financial Institution (CDFI). These unique financial organizations exist to provide affordable credit, capital and financial services to low-income and under-served communities. Rather than being solely profit-driven, their mission includes promoting economic growth, job creation and community revitalization in areas that have historically been overlooked by traditional financial services.
CDFIs rose to prominence in addressing the severe lack of accessible capital and financial services in disadvantaged communities. Traditional lenders often avoid lending to low-income individuals and small businesses, citing their lack of creditworthiness or collateral. This hesitancy has left many communities economically disadvantaged, who are facing formidable challenges such as high unemployment and poverty. CDFIs like TMC Community Capital are working to change that narrative.
At the heart of TMC Community Capital’s mission is the desire to redefine access to capital. Traditional lenders often leave individuals with minimal credit history or assets stranded in a sea of financial uncertainty. When traditional avenues are closed, these individuals may fall prey to high-cost, predatory lenders whose hidden fees can lead to crushing debt.
Enter TMC Community Capital: The Choice of Choice. Offering affordable loans ranging from $5,000 to $50,000, they focus on women-owned, low-income, and small businesses with limited resources. TMC’s community-based underwriting, combined with an accessible online platform optimized for mobile use and available in multiple languages, opens up new horizons for under-served communities.
Their objectives are clear: to educate small businesses on financing options, provide quick access to capital, maintain affordable costs, and assist entrepreneurs in establishing a credit history.
“We strongly believe that every entrepreneur, regardless of their background or circumstances, has equal access to capital and opportunities. Through our innovative lending initiatives, we are breaking down financial barriers, fostering innovation, and creating a dynamic business landscape that is inclusive and vibrant. . Our team is committed to driving economic growth, uplifting disadvantaged communities, and catalyzing the success of small businesses. Together, we’re building a future that where dreams can flourish and the possibilities are limitless,” Fernandez said.
One business, one entrepreneur at a time
Operating entirely within the borders of California, TMC Community Capital has made considerable inroads. In the last year alone, they extended over $2.1 million in loans to 62 small businesses in 18 countries.
TMC primarily serves BIPOC businesses (94%), of which more than half (54%) are owned by women, and a vast majority (85%) fall in the low- to middle-income group. Businesses of varying maturity, revenue and size all share a common thread – the entrepreneurial spirit fueled by TMC’s financial support.
Two of the many success stories include Todo Verde, a plant-based Mexican food business owned by Jocelyn Ramirez, and Full Belly Bakery, a black woman-owned enterprise started by trained pastry chef Eva. Both businesses received $50,000 from TMC Community Capital, allowing Todo Verde to produce inventory for online sales and local stores, and Full Belly Bakery to purchase equipment and move into retail space for expansion.
With each loan, TMC Community Capital is doing much more than just funding a business. They’re empowering an entrepreneur, sparking community revitalization, and ushering in a new era of lending. As the organization continues to grow and serve, we eagerly anticipate the continued transformation and redefinition of the financial landscape of California’s under-served communities.