National Minority Supplier Development Council Business Consortium Fund, Inc.

Capitalizing Minority Enterprise

aka Business Consortium Fund   |   New York, NY   |  http://www.bcfcapital.com

Mission

The National Minority Supplier Development Council Business Consortium Fund, Inc. is the nation’s sole lender dedicated exclusively to financing NMSDC certified minority businesses. It is a not-for-profit 501c (3) organization affiliated with the National Minority Supplier Development Council, Inc. and is also certified by the United States Department of the Treasury as a community development financial institution. The organization offers a wide range of financing programs and business advisory services to NMSDC certified minority businesses.

Ruling year info

1986

President & Chief Operations Officer

Mr. G. Winston Smith

Main address

575 Lexington Avenue 4th Floor

New York, NY 10022 USA

Show more contact info

EIN

13-3407599

NTEE code info

Economic Development (S30)

Management & Technical Assistance (W02)

Management Services for Small Business/Entrepreneurs (S43)

IRS filing requirement

This organization is required to file an IRS Form 990 or 990-EZ.

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Programs and results

What we aim to solve

SOURCE: Self-reported by organization

We aim to address the problem of the lack of capital, technical assistance, and capacity building tools for minority business enterprises that have opportunities with large corporations and government agencies. Oftentimes, even with contracts in hand, minority business enterprises (MBEs) are unable to obtain capital from traditional sources, namely, commercial banks. As a CDFI (Community Development Financial Institution), we provide loan programs through an alternative lending, impact financing platform to address the access to capital problem for minority businesses.

Our programs

SOURCE: Self-reported by organization

What are the organization's current programs, how do they measure success, and who do the programs serve?

BCF Direct Loan Program

The BCF Direct Loan Program (“DLP”) assists MBEs in obtaining financing including: lines of credit, contract financing, intermediate term loans, working capital loans and equipment financing. The loan is processed and approved in-house.

Population(s) Served

Where we work

Goals & Strategy

SOURCE: Self-reported by organization

Learn about the organization's key goals, strategies, capabilities, and progress.

Charting impact

Four powerful questions that require reflection about what really matters - results.

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 lend out (deploy), initially, a minimum of $20 million of lending capital, so that our revenue from interest income will once again cover our operating expenses.
(3) Raise and deploy $100 million of lending capital, so that we will have a more impactful voice in addressing the national need for capital flows into minority businesses.
(4) Collaborate with other lenders and sources of private equity, to facilitate larger capital flows into minority businesses.
(5) 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. As a result, we have a national footprint. Additionally, we are upgrading our IT infrastructure so that we can receive a higher volume of loan applications, and process and administer a higher volume of new loans. Finally, we are expanding our collaborations with other lenders.

Our first loan was to a woman of color business 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.

Our next step is to raise capital. Immediately, we need to raise operating capital so that our financial statements will be attractive to banks, as banks can be the best source of lending capital. And, immediately, we need to raise and deploy lending capital so that our revenue from interest income will cover our operating expenses and enable continuation of the working of our mission.

Then, next, we will launch the quest to raise a minimum of $100 million of lending capital. We will apply for the CDFI Bond Fund. And, we will establish relationships with other capital providers.

We know that the capital that the minority business community needs, and therefore that America needs to minority business community to access, is available. It needs to be harnessed and channeled. We intend, now more than ever before, to facilitate and participate in the harnessing and channeling of critically needed capital to minority businesses across the United States.

Financials

National Minority Supplier Development Council Business Consortium Fund, Inc.
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Operations

The people, governance practices, and partners that make the organization tick.

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National Minority Supplier Development Council Business Consortium Fund, Inc.

Board of directors
as of 5/20/2020
SOURCE: Self-reported by organization
Board co-chair

Mr. Timothy McBride


Board co-chair

Ms. Kathleen Kress

Fusion 5

Term: 2012 -

John Adams

Retired, PepsiCo, Inc.

Jeffrey Underweiser

Underweiser and Underweiser

Stacey Key

Georgia Minority Supplier Development Council, Inc.

Terrez Thompson

The Coca-Cola Company

Mark Fischer

General Motors Company

Clifford Bailey

TechSoft Systems

Adrienne Trimble

National Minority Supplier Development Council