Recent years have intensified the challenges faced by small businesses, but they’ve also galvanized local action
One fund has closed nearly $26 million in loans for over 400 Black and brown entrepreneurs in the Philadelphia region and facilitated $32 million in lending capital.
What do you do if your small business in Philly struggles to secure the financing it needs to survive and grow? For countless entrepreneurs, particularly those in Black and brown communities, the answer remains elusive — something that continues to stifle dreams and limit opportunities.
Small businesses are the heartbeat of Philadelphia’s neighborhoods. From corner stores to family-owned restaurants, they embody the grit and determination that defines our city, enriching our culture, economy, and community spirit.
But systemic barriers — such as limited access to affordable capital, technology, and business counseling services — place a disproportionate burden on entrepreneurs of color, perpetuating cycles of financial inequality and widening the generational wealth gap. The economic turbulence of recent years has only exacerbated these imbalances. Add in the tenuous future of critical federal and state programs that have served as lifelines for small-business owners, and the result is an environment where these challenges are not just heightened, but starkly exposed.
The partnership isn’t just confronting systemic barriers, it is actively dismantling them.
Consider Amanda Diaz, owner of Diaz Flat Fix in Kensington. After immigrating to the United States in 2010, Diaz earned a business administration degree from Temple University and began managing her father’s tire repair shops in 2013. For the better part of a decade, she grappled with high-interest debt due to the lack of affordable financing options.
That all began to change for Diaz in 2020, when capital from Impact Loan Fund, a local community development financial institution (CDFI), provided critical relief. A loan allowed her to refinance her debt and granted her access to a business training program tailored for Spanish-speaking entrepreneurs. With these resources, she went on to secure a $25,000 Kensington Growth Loan with favorable terms, enabling her to purchase one of her father’s locations and establish her own legacy in a male-dominated industry.
While the challenges may have intensified in recent years, they also galvanized local action. Enter the Philadelphia Growth, Resilience, Independence, and Tenacity (GRIT) Fund, of which the Impact Loan Fund is a member. Launched in 2021 by the Pennsylvania CDFI Network and the Greater Philadelphia Financial Services Leadership Coalition, with the backing of 15 regional banks, the $100 million initiative empowers Black and brown entrepreneurs by investing in the 11 regional CDFIs that serve them.
The partnership isn’t just confronting systemic barriers, it is actively dismantling them.
Diaz’s story isn’t the only success. Since its launch, the GRIT Fund has closed nearly $26 million in loans for over 400 Black and brown entrepreneurs, provided over 5,100 business counseling services, and facilitated $32 million in lending capital investments. The efforts have created or retained 3,298 jobs.
Samara Heaggans, cofounder of Backhome Foods, is another powerful example. With access to capital and advisory services from Neighborhood Progress Fund’s Build for Success program, Heaggans transformed her vision of ready-made meals into a thriving business. Similarly, Scutt Blanc of Blanc Catering LLC overcame periods of business closure and even homelessness with support from Finanta. Today, his catering company delivers exceptional culinary experiences citywide.
These stories serve as a powerful reminder that the American dream is still alive in Philadelphia, even amid economic headwinds and systemic challenges, and that provided with loan capital and business counseling support, aspiration can be turned into achievement.
The GRIT Fund’s success has spurred its expansion into Lehigh Valley and Central Pennsylvania, a testament to its growing statewide influence. But the work is far from over. It relies on sustained collaboration among banks, government, community stakeholders, and individuals alike. As federal and state support for small businesses remains uncertain, local action is more crucial than ever before. By rallying behind the GRIT Fund, we can ensure its aspirational $100 million goal becomes a reality — fueling more stories like Diaz’s, Heaggans’, and Blanc’s.
Together, we are building a region where growth, resilience, independence, and tenacity are not simply ideals, but lived experiences for every entrepreneur, every community, and every neighborhood. The future relies on our shared commitment, and the moment to unite in contributing to it is now.
Varsovia Fernandez is the CEO of the Pennsylvania Community Development Financial Institution Network.