PHILADELPHIA – Citizens Bank and PIDC announced a major new partnership in which Citizens will loan $3 million to boost community investment and small business lending in commercial districts throughout the city.
The loan makes Citizens a major new investment partner in PIDC Community Capital, PIDC’s Community Development Financial Institution (CDFI) subsidiary that provides critically-needed financing for small businesses in neighborhoods across the city. The announcement was held at Replica Creative, a successful city-based design and print company owned by local entrepreneur Dr. Keith Leaphart.
“In Philadelphia, small businesses play a vital role in our success as a city,” said Mayor Jim Kenney. “Small business owners are creating jobs and transforming our neighborhoods, and we should be doing all that we can to support them. This expansion of PIDC Community Capital with the help of Citizens Bank will be extremely beneficial, increasing the amount of funds available to small businesses and entrepreneurs throughout the city.”
“Small business investment is a driving force in growing Philadelphia’s economy, and this investment from Citizens Bank will expand PIDC’s ability to provide financing for entrepreneurs that will drive growth in neighborhoods throughout the city,” said PIDC President John Grady. “Our plan is to continue to raise additional private capital to significantly expand PIDC’s small business loan portfolio to provide flexible, affordable financing to more terrific neighborhood businesses like Replica Creative. We thank Citizens Bank for its willingness to join us in rebuilding our neighborhoods and revitalizing our city, and we encourage businesses from every corner of Philadelphia to look to PIDC as a resource when they are seeking to grow.”
“PIDC is an excellent partner, and this is an outstanding opportunity to invest in small businesses in neighborhoods throughout Philadelphia,” said Daniel K. Fitzpatrick, President of Citizens Bank of Pennsylvania, New Jersey and Delaware. “At Citizens Bank, we understand that these businesses are the key to the region’s future, just as they are all across the nation. Small business represents more than 66 percent of the new jobs in Philadelphia, and more than 65 percent of new jobs created in the United States. By partnering with PIDC, we hope to help even more entrepreneurs and small business owners thrive in Greater Philadelphia.”
“Flexible financing from PIDC has been vital to the growth of my small business,” said Dr. Leaphart. “Having access to capital provides opportunity for small businesses to survive and thrive in every Philadelphia neighborhood. In our case, PIDC financing allowed us to take an innovative idea from dream to reality. We appreciate the support of Citizens and all of the investment partners in PIDC’s lending program, and we encourage continued investment as a key to the success of small businesses throughout the city.”
“Small businesses are a cornerstone of our city’s economy,” said Commerce Director Harold T. Epps. “This program complements the Administration’s focus on small business and job creation, and I am thrilled that with this additional investment, PIDC Community Capital will now have the ability to support even more of Philadelphia’s talented, eager entrepreneurs in neighborhoods throughout the city.”
PIDC has aggressively expanded its business lending to small businesses and entrepreneurs, having doubled its loan volumes since 2011 with investments in 91 percent of the city’s zip codes. In 2015 alone, PIDC provided $27 million in financing to 85 small businesses, a 26 percent increase in loans over the previous year. What’s more, PIDC Community Capital funds have leveraged an additional $16 million in private investment over the last three years – equating to $2.70 for every dollar lent. The Citizens Bank loan announced today is part of PIDC’s ongoing commitment to expand small business lending and business support activities over the next three years.
Get more information about PIDC financing for small business here