SEATTLE, November 01, 2011 - Starting today, Starbucks Coffee Company (NASDAQ: SBUX) with the Opportunity Finance Network® (OFN) is accepting donations for the Create Jobs for USA Fund online at www.CreateJobsforUSA.org and in every U.S. company-operated store. Donations to the Fund, which has been seeded with a $5 million contribution from the Starbucks Foundation, will help create and sustain jobs in underserved communities throughout the U.S.
"The Create Jobs for USA program and Indivisible wristbands provide Americans an opportunity to help support job creation at a time when we have alarming unemployment and many struggling small businesses. The more we stimulate demand and increase the purchasing power of middle class consumers, the faster we will recover. By making a donation to the Create Jobs for USA Fund, Starbucks customers and concerned citizens can take meaningful action to help create and sustain American jobs," said Starbucks chairman and ceo Howard Schultz. "We hope this is a galvanizing moment as Americans come together to be catalysts for change by giving community businesses access to the credit they need to hire, to grow and to contribute to creating thriving communities."
As announced on October 3, Create Jobs for USA pools donations from Starbucks customers, partners (employees) and concerned citizens into a nationwide fund, held and managed by OFN, for community business lending. Donors who contribute $5 or more will receive a red, white, and blue wristband with the message "Indivisible." The wristbands are individually handmade in the U.S.A. and all component materials are manufactured by U.S. suppliers, so the effort is also helping support American manufacturing jobs.
The wristband is designed to serve as a symbol of Americans uniting to help create jobs. One hundred percent of donations go to OFN to help fund loans to community businesses nationwide that are committed to creating and sustaining jobsâ€”including small businesses, microenterprises, nonprofit organizations, commercial real estate ventures, and affordable housing projects.
OFN president and ceo Mark Pinsky said, "Create Jobs for USA is primed and ready to start lending right now. This peer-to-peer job creation initiative is a simple, high-impact solution to put America back to work. Opportunity Finance Network has already made grants to Community Development Financial Institutions using the initial $5 million contribution from the Starbucks Foundation. They are working on loans as we speak."
OFN represents a nationwide network of 180 Community Development Financial Institutions (CDFIs) that provide financing to community businesses in underserved markets where accessing credit through traditional lending institutions is challenging or not available. Currently, 28 CDFIs are approved to receive grants and this number will continue to grow. The CDFIs expect to start making loans to small business owners by December. The approved CDFIs are a mix of national and regional organizations that serve borrowers across the U.S., in urban and rural communities from California to New York and from South Dakota to Florida.
Every $5 donated will result in $35 in loans to community businesses. On average, CDFIs will match $30 of money from other sources with every $5 donation. Based on conservative forecasting models developed by OFN with input from independent economists, one new job will be created or retained for approximately every $21,000 in loans – or approximately every $3,000 in donations. Since CDFIs in the OFN network have an average 98 percent loan repayment rate, virtually every $1 donated will be re-loaned, compounding the job-creation impact. Small business owners interested in learning more or applying for a loan should visit www.opportunityfinance.net/findacdfi.
About Starbucks Coffee Company
Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting the highest-quality Arabica coffee in the world. Today, with stores around the globe, the company is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at www.starbucks.com.
About Opportunity Finance Network
Opportunity Finance Network (OFN) is the national network of Community Development Financial Institutions (CDFIs)â€”private financial institutions that are 100 percent dedicated to delivering responsible, affordable lending to help low-income, low-wealth, and other disadvantaged people and communities join the economic mainstream. CDFIs in the OFN network serve all 50 states, and OFN Member CDFIs originated more than $23.2 billion in financing in urban, rural, and Native communities through 2009. More information is available at: www.opportunityfinance.net
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