Seven Cities Launch Initiative to Support Small Business Owners Through Financial Counseling

Enhancing Small Business Services Through Financial Counseling

The Cities for Financial Empowerment Fund (CFE Fund) recently announced a significant initiative aimed at bolstering the financial health of small business owners. The program, known as the Small Business Boost (SBB) initiative, sees the selection of seven cities that will offer one-on-one financial counseling to local entrepreneurs. This initiative aims to address the essential but often overlooked intersection between personal finance and business success. Starting this month, cities such as Akron, OH; Aurora, IL; Columbus, OH; Louisville, KY; Polk County, IA; Rochester, NY; and Sacramento, CA will participate in providing this vital support.

The Connection Between Personal and Business Finance

Launching a small business is considered one of the most effective avenues for accumulating wealth. Yet many entrepreneurs encounter significant personal finance obstacles that can hinder their capabilities to start or expand their business ventures. The SBB initiative, supported by the Principal® Foundation, seeks to bridge these gaps by offering professional financial counseling services tailored specifically to the unique challenges faced by local entrepreneurs.

Jonathan Mintz, the president and CEO of the CFE Fund, emphasized the importance of this initiative, stating, "Small business ownership can be a powerful pathway to opportunity, but for too many, personal finances create barriers to success. The Small Business Boost initiative will help entrepreneurs manage their personal finances so they can better access capital and generate wealth.”

This program not only provides financial resources but also fosters a supportive community of entrepreneurs who learn to navigate their financial journeys effectively. Each selected city will receive $90,000 in funding along with technical assistance, thereby enhancing their existing small business support infrastructure.

Past Achievements and Future Goals

The SBB initiative is part of a larger effort by the CFE Fund, which had its first pilot program funded by Principal Foundation between March 2022 and 2023. The pilot, conducted in five cities, tested how financial counseling could help entrepreneurs manage their personal finances, thus laying a foundation for sustainable business growth. Following the positive results, this new chapter will expand the reach and power of the initiative.

Through collaboration with local businesses and service providers, entrepreneurs will receive guidance on navigating their personal finance challenges linked to business ownership, such as separating personal and business finances, improving credit scores, and reducing debt to qualify for business loans. This approach not only benefits individual entrepreneurs but also strengthens the local economy and communities at large.

The Financial Empowerment Centers (FECs) are integral to the SBB initiative, with counselors assisting individuals from low- and moderate-income backgrounds in managing their finances effectively. By focusing on the essential aspects of financial education and planning, FECs help households build savings, reduce debt, and ultimately enhance their chances of business success.

Building a Network of Supportive Resources

This initiative aligns with a growing recognition of the essential role that small businesses play in the economy and community development. Jo Christine Miles, Director of Principal® Foundation, reiterated this point, stating, "Small businesses are the mainstay of our nation's economy and the backbone of our communities." By providing resources and creating networks of support, the SBB aims to elevate the entrepreneurial spirit across participating cities.

In addition to direct financial counseling services, the SBB initiative seeks to establish robust channels of qualitative research. Understanding the small business client journey and the impact of personal finances on entrepreneurial success will provide invaluable insights in enhancing future programming. The ultimate goal is to empower local entrepreneurs, providing them with the tools and support they need to succeed.

As the initiative rolls out, it will be closely monitored and evaluated to ensure that it is effectively meeting the needs of small business owners. The CFE Fund and its partners are committed to continuous improvement and innovation in financial counseling services, ensuring a brighter and more financially secure future for entrepreneurs across America.

For more information about the Cities for Financial Empowerment Fund and the Small Business Boost initiative, visit CFE Fund's official site or follow them on Bluesky at @cfefund.bsky.social.