WHEREAS, The City of Philadelphia suffers from a very high rate of poverty, hovering around 26%; and a higher-than-average unemployment rate, which was 6.5% as of mid-2015 and higher among certain demographics; and
WHEREAS, Economists and sociologists agree that well-paying, steady jobs are effective and viable pathways to economic mobility, and they have encouraged efforts which lead to their creation; and
WHEREAS, In Philadelphia and elsewhere, such jobs are often located within small businesses in neighborhoods and along commercial corridors; and
WHEREAS, A lack of access to capital has been identified as a major barrier to the creation of new small businesses and the growth of existing ones; and
WHEREAS, In recognizing and attempting to surmount this barrier, the City of Philadelphia’s Department of Commerce recently partnered with a number of nonprofit and for-profit commercial lenders in the City to form the Philadelphia Capital Consortium; and
WHEREAS, The goal of the Philadelphia Capital Consortium is to improve access to capital for small businesses and entrepreneurs throughout the City; and
WHEREAS, Under the Capital Consortium model, small business owners or entrepreneurs, after a streamlined application process, are matched with Community Development Financial Institutions, traditional commercial banks and other lenders, who then provide loans and technical assistance to help businesses start and grow; and
WHEREAS, The Philadelphia Capital Consortium, as it grows in terms of number of lender partners, applications received and loans granted, could provide greater opportunities for independently-owned small businesses to expand, build wealth, and hire more Philadelphians in search of gainful employment; now, therefore, be it
RESOLVED, BY THE COUNCIL OF THE CITY OF PHILADELPHIA, That Council does hereby authorize the Committee on Commerce & Economic Development to hold hearings regarding the Philadelphia Capital Consortium.
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