LISC Small Business Aid
LISC Small Business Aid (Local Initiatives Support Corporation) is one of the largest social enterprises in the country supporting projects and programs to revitalize underserved communities and provide residents with greater economic opportunities. It invests in affordable housing, quality schools, safer roads, growing businesses, and programs that connect people with financial opportunity.
In response to the pandemic, it is providing resources and expertise to support communities, businesses and people. Grants can be used for: liabilities including rent and utilities; Payroll (to include the applicant); Payment of outstanding debt to seller; or other immediate operating costs.
LISC Small Business Aid
LISC Small Business Aid program aims to support small and COVID-19 affected businesses across the country. Priority will be given to black business owners, veteran-owned businesses, women owned business and other businesses in historically underserved locations that lack access to flexible, affordable capital.
Grants will be awarded to companies that are under immediate financial pressure due to COVID-19. Award winners must certify that they promote the best interests of the community and have been negatively impacted by the COVID-19 crisis. The grant can be used for:
- Liabilities including rent and ancillary costs
- Payroll (to include the applicant)
- Pay outstanding debt to suppliers
- Other direct operating costs
Amount: $18,000,000 is available to award up to 900 grants between $5,000 and $20,000.
Applicants must be 18 years old and can only apply for one company. Small businesses must be located in rural communities with a population of 50,000 or less. A parish is defined as the city / town / village in which the business address is located.
If the company is mobile (a food truck, fishing boat, car pool driver, etc.), use the address where the vehicle is parked outside of business hours.
Deadline: Applications are accepted in rounds as follows:
- November 26th – December 2nd, 2022
- December 29, 2020 – January 5, 2022
- January 26th – February 2nd, 2022
LISC Funding for Small Businesses
Local Initiatives Support Corp. Indianapolis Offers $130,000 in COVID Aid to Immigrant-Owned Small Businesses in Indianapolis. According to LISC program, 26 companies have each received $5,000 in grants with support from First Financial Bank, The Glick Fund, and Wells Fargo
The organization says immigrant-owned companies are disproportionately affected by COVID as many are over-represented in the service sector, especially in small restaurants. Language and culture barriers have caused limited access to COVID resources and small business grant support services, according to LISC Small Business Aid.
LISC Indy says priority has been given to investing in immigrant-owned businesses in historically underserved neighborhoods in Indianapolis.
The following companies received help:
- African market
- Ameer Middle Eastern Cuisine
- Ariks rentals and decorations
- Asked painting
- CMT events and catering
- Don Juan Vs Sandwiches
- Don Gusto PJ restaurant
- Ebenezer Haitian Grocery & Kitchen
- Gomez BBQ
- Gutters Plus Indy
- Happy Angels day care center
- Cozy hot pot & sushi buffet
- Indy Korea
- Khambawi Inc
- La Fuente supermarket
- Oriental market in Lungdam
- Mia cleaning
- Morales Marketing
- Multiservicios Latinos
- New Food King Chinese Restaurant
- Nuh Nuh Asian Grocery LLC
- Tapatía Mexican grill
- The pantry
- T-vertebrae crepe
- Tu Tus beauty salon
- Yoya frozen yogurt
Affordable Housing From LISC Small Business Aid
Thousands of property developers and development companies across the country are working to increase the availability of affordable housing. Housing projects cost money, of course, and developers often turn to government programs for funding.
When used effectively, government subsidies often encourage investment from the private sector. If this strategy is successful, the ratio of private to government investments can be as high as 5 or 6 to 1. One organization, the Local Initiatives Support Corporation (LISC), is exploring creative ways to improve this relationship.
Local Initiatives Support Corporation (LISC) was founded in 1980 with the intention of helping Community Development Corporations (CDCs) raise funds for affordable housing and related projects.
In its first 18 months, LISC small business aid helped over 130 communities in 28 states improve housing, infrastructure and economic development.
Funds For Affordable Housing
Over the years, LISC has used $11 billion in government funds to raise a total of $33 billion in investment dollars – all with the aim of building sustainable communities where people of all incomes can afford housing, access to education and Find work.
LISC recently received a $5 million grant from the Treasury Department’s Capital Magnet Fund to set up the Neighborhood Revitalization Loan Fund. The grant money will be combined with funds from Morgan Stanley to help initiate and support projects earning Low Income Housing Tax Credits (LIHTC). In addition to the §8 guarantees, subsidies can be used for the purchase of land, construction costs and advance development planning.
LISC small business aid currently plans to distribute the funds among 30 programs in the United States that support both urban and rural development. The Capital Magnet Fund was created by the Housing and Economic Recovery Act of 2008 as part of the Community Development Financial Institutions Fund (CDFI Fund) and is administered by the Treasury Department.
Last fall, LISC and similar organizations were awarded a total of $80 million. Proponents believe the Capital Magnet Fund is a great example of how a small amount of federal funding can be used to mobilize generous private funding for affordable housing projects.
As Congress continues to seek ways to cut spending and lower the public deficit, organizations like LISC must continue to research and promote methods for allocating private investment funds to low-income housing developments. Although federal funding for this type of project may be cut, affordable housing is needed more than ever as families face financial crises that make housing inaccessible at market prices.