National Minority Supplier Development Council Business Consortium Fund, Inc.

Our goal is to raise lending capital so that, through loans and technical assistance to MBEs, we can facilitate, at a minimum, MBEs (minority business enterprises) achieving entrepreneurial parity. "Entrepreneurial parity is defined as reaching proportionality between the minority population percentage and the percentage share of business development measures such as number of firms, gross receipts, and employment." (mbda.gov) (See the following for a deeper understanding of the benefits of achieving entrepreneurial parity: https://www.mbda.gov/page/executive-summary-disparities-capital-access-between-minority-and-non-minority-businesses.) Generally, however, if there was entrepreneurial parity in 2002, then MBEs would have generated $2.5 trillion in gross receipts, rather than $661 billion; and, MBEs would have employed 16.1 million persons, rather than 4.7 million persons. We are aiming to facilitate the achievement of entrepreneurial parity, and the associated minority wealth creation, minority job-creation, and minority community job-growth.

Our strategy is multi-fold:
(1) Cultivate and nurture relationships with sources of operating and lending capital including: commercial banks, corporate and private foundations, insurance companies, family offices, high net worth individuals, and other entities that can provide capital for our mission.
(2) Raise and deploy $20-30 million in lending capital annually as we manage towards self-sufficiency through net interest margin.
(3) Collaborate with other lenders and sources of private equity, to facilitate larger capital flows into minority businesses.
(4) Establish, deliver, and facilitate the establishment and delivery of venues via which technical assistance can be provided to minority business owners and executives so that capacity building can be enabled.

We have been lending to MBEs (minority business enterprises) certified by the regional councils of the National Minority Supplier Development Council (NMSDC) since 1987, throughout the United States. We know how to make good loans in this space. We have an active board of directors, executive committee, board committees, management structure and operating infrastructure to make loans to MBEs. And, we are re-developing our technical assistance delivery infrastructure. Further, we are closely aligned with each of the 23 regional councils of the NMSDC, and as a result, we have a national footprint. Additionally, we have recently upgraded our IT infrastructure to more efficiently and effectively deploy our capital. Finally, we are expanding our collaborations with other lenders and working with large national banks to increase our capital base to expand our lending.

Our first loan was to a woman of color business owner in Houston, TX. Since 1987, we have facilitated more than $215 million of loans, to more than 800 minority businesses, and our loans have created more than 7,300 jobs.

We are currently raising capital to serve a minimum of 140 new entrepreneurs of color over the next three years. BCF is undertaking efforts to recapitalize, revitalize, and continue to serve as the bridge between MBEs and the U.S. corporations that can provide meaningful supplier contracts that result in wealth creation for entrepreneurs of color. Part of this plan is to put Business Consortium Fund on a path toward self-sufficiency as we grow our net assets through increased net interest margin.

In November 2021, with support from a new national bank partner, we launched a new microloan program. We expect to originate at least 100 microloans over the next six months, and this flexible capital will lower barriers of entry to entrepreneurs of color seeking to establish and grow their businesses.