Three Portfolio Partners Supporting Small Businesses

Small businesses are vital to our communities — they foster good jobs, drive local development, and create inclusive economic opportunities. Nearly half of all Americans are employed by small businesses, which are responsible for over 60% of new jobs created in the U.S. in the last 30 years.

At Calvert Impact, one of the ways we support small businesses is by investing in intermediaries like specialized small business funds, Community Development Financial Institutions (CDFIs), and microfinance funds that help small businesses get the resources they need to grow. Organizations in the small business and community development sector make up close to 35% of the Community Investment Note® portfolio, while microfinance institutions make up another approximately 13%. We also support the small business sector through other partnerships and programs outside of the Community Investment Note®.

In honor of this year’s U.S. National Small Business Week, we’re highlighting a few of these portfolio partners helping small businesses thrive in different regions of the U.S. Read on to learn about their work and be sure to check out the Community Investment Note® portfolio page to learn about more partners that empower small businesses around the world.

Clearinghouse CDFI

Clearinghouse CDFI (CCDFI) is a full-service, direct lender addressing unmet credit needs throughout the U.S. with a focus on the Southwest. For 25 years, Clearinghouse CDFI has helped bridge the gap between conventional lending standards and the needs of low-income, distressed, and communities of color. Since inception in 1996, CCDFI has funded $2.5 billion in total loans for over 2,600 community projects. These projects have created or retained more than 43,800 jobs and benefited over 4.87 million individuals.

Walt’s “Do It Best” Hardware store is one of the many small businesses that has benefitted from a loan from Clearinghouse CDFI. Walt’s Hardware has served the rural area of Holbrook, Arizona since 1964. The small business offers a “community-oriented” hardware experience at competitive pricing for residents. Walt’s Hardware is the only full-line hardware store within 30 miles. Clearinghouse CDFI provided financing for Walt’s Hardware to increase store inventory and boost business operations.

Amber Hill, owner of Walt’s Hardware, said of Clearinghouse CDFI’s loan process, “We encountered difficulties with conventional lenders due to the unique circumstances of being in a rural area. However, the process with Clearinghouse CDFI went really quickly. Randy and Andy were great! Andy is truly a cheerleader for the rural area and underserved communities.”

Greenline Ventures Small Business Capital Fund I

Greenline Ventures is an impact-focused investment management firm that focuses on providing capital to underserved businesses and communities. In 2016, it launched a $20 million Small Business Capital Fund I (SBCF) to provide loans at favorable or better-than market-rates to underserved small businesses in distressed census tracts throughout the U.S.

One of the businesses that has received a loan through the SBCF is Voormi, a high‐performance, natural fiber based active apparel brand located in Pagosa Springs, CO. Their craft apparel materials are 100% domestically sourced, manufactured and finished garments are sewn in micro‐factories in rural communities. With a focus on quality and innovation, they source their merino wool from Rocky Mountain ranches and apply proprietary technology to its products by sewing synthetic fibers directly into the wool.

Voormi’s goal is to create sustainable products that are built to endure hard conditions, are durable, support the local community, and deliver goods without the need of thousands of gallons of oil and gas to get there. They also strive to transform rural communities into small manufacturing hubs providing economic development where it is needed most. Voormi utilized the SBCF’s loan proceeds to provide the business with working capital to increase inventory, product lines, marketing, purchase equipment and to position themselves for future licensing opportunities.

Partner Community Capital

Partner Community Capital™ (PCAP), formerly Natural Capital Investment Fund, is a CDFI that advances equity and helps communities flourish by lending to enterprises that promote a healthy environment and healthy families in Central Appalachia and the Southeast. Over 85% of the businesses PCAP supports are in rural or economically distressed communities.  As of 2024, PCAP had loaned more than $184.6 million to 1,054 enterprises.

PCAP lends to many businesses based in North Carolina, like Firsthand Foods, a women-owned, B-Corp certified food hub located in Durham. Firsthand Foods connects humanely raised beef, pork, and lamb with local consumers.

Global supply chain arrangements dominate the meat industry, while small-scale farmers are often denied access to market opportunities. Firsthand Foods focuses on building a robust market for local, pasture-raised meats that consumers can trust were raised humanely in a spirit of fairness and stewardship. The business is a network of small-scale, pasture-based livestock producers that share the same values of dignity, quality, accountability, and innovation. The livestock producers sell their animals to Firsthand Food, where they aggregate, market, and distribute their meats to retail and food service customers. In return, Firsthand Foods provides the farmers with meat quality and pasture management information, allowing the farmers to adjust as needed to meet their customers’ standards.

PCAP made a loan to Firsthand Foods to help them to purchase a more energy-efficient walk-in cooler for their business and help reduce energy costs.

Jennifer Curtis, CEO of Firsthand Foods, said of their relationship with PCAP and the loan, "Partner Community Capital's ongoing financial support is instrumental in our strategic expansion at Firsthand Foods as well as our commitment to sustainability. We used our loan from PCAP to purchase a state-of-the-art, energy-efficient, 900 sq ft walk-in freezer and cooler. This crucial new piece of equipment allows us to store and deliver even more responsibly sourced meats to our communities.”

To learn more about all of the Community Investment Note® partners that work with small businesses, visit the Community Investment Note® portfolio page.