Starbucks CEO Spearheads Grassroots Lending Plan
For Starbucks Chairman/ CEO Howard Schultz, “waiting for Washington” to come up with tangible plans to generate more jobs is not a likely course of action these days.
To get the ball rolling on a grassroots level, Starbucks Coffee Co. has partnered with the Opportunity Finance Network to launch “Create Jobs for USA.” The effort will pool donations from Starbucks customers, employees and concerned citizens into a nationwide fund for community business lending.
Pinsky said CDFIs must be a member of Opportunity Finance to be eligible to receive the funds to distribute to small businesses. The financial institutions will go through a screening process to ensure that they have a strong lending track record and a healthy pipeline of transactions. The money raised will be used by lenders as net worth, which will then be used as capital by small businesses, he explained.
While no specific goals have been determined yet, Pinsky said he is expecting millions of dollars to come through the donations over a period of months. On the Create Jobs for USA website, the donations and number of jobs created will be tracked and posted.