October 24, 2011

Job Creation Starbucks Style, Lending to Small Businesses

Howard Schultz’s initiative: Job creation Starbucks style, lending to small businesses.

Americans themselves would start lending to small businesses, with Starbucks serving as the middleman. Starbucks would find financial institutions willing to loan to small businesses. Starbucks customers would be able to donate money to the effort when they bought their coffee. Those who gave $5 or more would get a red-white-and-blue wristband, which Schultz labeled “Indivisible.” “We are hoping it will bring back pride in the American dream,” he says. The tag line will read: “Americans Helping Americans.”
And 
The donations to Create Jobs for USA will not be loaned to the CDFIs. They will be turned into capital — equity that can be leveraged. Pinsky and others told me that that equity can be leveraged 7 to 1, meaning that if 10 million Starbucks customers donate $5, that will support $350 million worth of lending.
The initiative under the banner Create Jobs for USA is being started by Starbucks and Opportunity Finance Network.