Bank of America, the U.S. Small Business Administration and the Initiative for a Competitive Inner City Team up to Help Inner City Entrepreneurs Access Capital

November 19, 2008 2:00 PM EST

NEW YORK, Nov. 19 /PRNewswire/ -- Bank of America, the U.S. Small Business Administration (SBA) and the not-for-profit, Initiative for a Competitive Inner City (ICIC) joined together to advance inner city small business growth today by hosting Inner City Capital Connections (ICCC) 2008. The New York event brings together private equity investors and entrepreneurs from inner cities around the country seeking capital for growth.

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In a keynote address, SBA Acting Administrator Sandy Baruah highlighted the agency's efforts to stimulate inner city small business growth through its partnership with ICIC as well as its E200 initiative, a jobs and growth stimulation effort targeting 200 promising inner city small businesses.

"Successful small business growth is the key to job creation, investment and economic strength in America's inner cities," said Baruah. "Supporting these entrepreneurs is core to SBA's mission and an essential component of moving our economy in the right direction. SBA is proud to play a role in facilitating the connection between investors and emerging inner city entrepreneurs and to accelerate opportunities for small businesses in these markets."

Inner City Capital Connections is a joint project of Bank of America and ICIC. The ICCC process identifies and prepares a select group of entrepreneurs interested in networking opportunities with equity capital investors. The event provides the opportunity for entrepreneurs to meet with these investors and pitch their business plans. Unlike other capital raising events, ICCC is unique in its focus on inner city entrepreneurs. SBA supports the effort to match investors and entrepreneurs by helping identify small companies and SBIC firms to participate in ICCC events. ICCC events were held in Chicago, Los Angeles, New York, and Miami in 2005, 2006, and 2007.

"Today's economic climate is difficult for everyone, and small businesses are among those particularly challenged," said Alan Rappaport, Bank of America New York President. "Bank of America has a deep commitment to creating opportunities for growth in the communities we serve and we are pleased to facilitate capital raising for these dedicated inner city entrepreneurs. Past events have shown that bringing investors and inner city entrepreneurs together helps create economic growth and jobs."

Also at today's event, ICIC will be publish preliminary results from a study of participants in past ICCC events. Survey respondents reported that more than $80 million in growth capital has been raised by ICCC participating companies. Of that amount, $21 million was equity capital and $58 million was debt investment. ICCC companies created 3,500 new jobs since 2005. Collectively, these companies employ more than 8,000 workers, with 30 percent of the workforce residing in the inner city. According to the 2007 ICCC Survey, 61 percent of participating investors have already made investments in inner city communities, and a full 94 percent of participating investors proactively source deals from companies in hub-zones, low-moderate income census tracts, and/or areas that have historically lacked access to capital.

"In a very short time, ICCC has shown that inner city companies are ready for growth capital and are willing to do what it takes to build strong sustainable businesses," said Manjari Raman, Senior Vice President of Programs for ICIC. "A majority of companies who have participated in the program call the experience 'transformative' and show dramatic growth within months of attending an ICCC event. For U.S. private equity investors, the event opens the way to a new asset class for investments. ICCC demonstrates the connection between access to capital and its direct effect on entrepreneurship and economic development in the inner city."

Bank of America

Bank of America is one of the world's largest financial institutions, serving individual consumers, small and middle market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk-management products and services. The company provides unmatched convenience in the United States, serving more than 59 million consumer and small business relationships with more than 6,100 retail banking offices, more than 18,000 ATMs and award-winning online banking with more than 25 million active users. Bank of America offers industry leading support to more than 4 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients in more than 150 countries and has relationships with 99 percent of the U.S. Fortune 500 companies and 83 percent of the Fortune Global 500. Bank of America Corporation stock (NYSE: BAC) is a component of the Dow Jones Industrial Average and is listed on the New York Stock Exchange.

The Initiative for a Competitive Inner City

The Initiative for a Competitive Inner City (ICIC) is a national not-for-profit organization founded in 1994 by Harvard Business School professor Michael E. Porter. ICIC's mission is to promote economic prosperity in America's inner cities through private sector engagement that leads to jobs, income and wealth creation for local residents. ICIC brings together business and civic leaders to drive innovation and action, transform thinking and accelerate inner city business growth and investment. www.icic.org

U.S. Small Business Administration

The U.S. Small Business Administration (SBA) was created in 1953 as an independent agency of the federal government to aid, counsel, assist and protect the interests of small business concerns, to preserve free competitive enterprise and to maintain and strengthen the overall economy of our nation. SBA recognizes that small business is critical to our economic recovery and strength, to building America's future, and to helping the United States compete in today's global marketplace. www.sba.gov

Disclaimer: SBA's participation in this cosponsored activity is not an endorsement of the views, opinions, products or services of any cosponsor or other person or entity. All SBA programs and services are extended to the public on a nondiscriminatory basis. Cosponsorship Authorization # 08-7050-07.

SOURCE Bank of America

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