By Ms Jheri Worldwide
Staff Writer
This month's "Coffee with Leaders" series, presented by The Raleigh Chamber of Commerce, featured a compelling discussion with Kevin Dick, President and CEO of the Carolina Small Business Development Fund (CSBDF). The event provided local business owners and entrepreneurs with invaluable insights into navigating the small business ecosystem and fostering equitable economic development.
Kevin Dick, whose organization boasts a 35-year legacy of supporting North Carolina's economic landscape, underscored the CSBDF's core mission: providing both financial and technical assistance to small businesses. A key differentiator for CSBDF, as Dick explained, lies in its approach to small business lending. Unlike traditional banks that primarily focus on a "credit box" and credit scores, CSBDF acts as a long-term partner. "If you show up, you're the perfect person to pick," Dick quipped, emphasizing their willingness to work with businesses that might not meet stringent bank criteria. He illustrated this by explaining that while a bank might approve a loan for a thriving business, CSBDF offers sustained guidance, helping businesses refine financial statements, explore market opportunities, and strategize for growth. "We become a partner throughout the life cycle of the business," he stated.
Dick also emphasized the foundational role of access to capital, describing small business lending as "transformational when rooted in community and equity." He challenged the notion that investments in organizations like CSBDF are merely grants, asserting, "our organization is an investment," pointing to the ripple effect of small business growth on tax revenues and local character. He cited Fat Tuesdays, a local business, as an example of how small businesses contribute to "neighborhood-level energy."
A significant portion of Dick's address focused on the historical context and ongoing disparities in access to capital, particularly for marginalized groups. He passionately recounted a "story that is definitely grounded in truth" about the creation of "Levittowns" after World War II. He explained how the federal government provided 0% financing to developers like Levitt, on the explicit condition that homes would not be sold to Black individuals. This policy, enshrined in written covenants, created a stark contrast between the wealth-building opportunities afforded to white soldiers returning home and the systemic barriers faced by Black soldiers.
"Wealth in this country is generational," Dick stressed, "not just the transfer of finances, but the transfer of knowledge and relationships." He illustrated how the inability of Black individuals to access traditional banking relationships in the past continues to impact generational wealth today. This historical context, he explained, directly led to the creation of Community Development Financial Institutions (CDFIs) and the Community Reinvestment Act (CRA) of 1977, which finally recognized and addressed the practice of "redlining" by banks.
Dick acknowledged that challenges persist for small businesses seeking funding. He identified credit scores as a major hurdle, noting that many profitable businesses with solid operations might have their credit impacted by unforeseen life events like medical emergencies. He also highlighted a "lack of understanding what they can afford to take on" as another common challenge, emphasizing the need for businesses to accurately assess their operating income.
CSBDF, with the help of its business solutions officers like Vera and Ryan, who were present at the event, aims to bridge these gaps. They provide tailored technical assistance, helping businesses understand their financial capacity and prepare for sustainable growth. Dick also proudly mentioned their "on the ground" Spanish language program, a growing part of their portfolio aimed at serving the expanding Hispanic entrepreneurial population in North Carolina.
The event concluded with an encouraging call to action: "Leverage Support Networks," "Overcome Funding Hurdles," and recognize that "Access to Capital is Foundational." The insights shared by Kevin Dick provided valuable tools and a deeper understanding of how equitable access to resources is not just a societal ideal, but a powerful engine for North Carolina's economic vitality.
