Wells Fargo, Neighborhood Concepts Help Make Small Business Ownership a Reality

Strong communities go beyond affordable housing, they also pave the way for small businesses to provide economic opportunities.

A major obstacle faced by minority small business owners is securing financial backing to qualify for a loan.

Organizations such as Neighborhood Concepts and Wells Fargo have partnered to help aspiring entrepreneurs invest in their communities and build wealth.

Redeveloping North Huntsville is something that’s gaining traction. To some, the north side is viewed as declining neighborhoods, struggling businesses, and no opportunities for employment.

“Businesses fail when they if they don’t have a plan,” said Judy Hardin, the executive director of the North Huntsville Business Association. “There are other elements that business may need; minority, small, or large, but if we can find a way to share that information or point them to a resource, that makes everyone successful.”

That’s why it’s important to have the tools to sustain a business long after its grand opening. Adequate funding just is the first piece of the business puzzle.

Dark Side Coffee

A new, minority-owned small business in North Huntsville. The Dark Side specializes in a variety of espressos, coffees, lattes, and teas. Darkcino, its signature beverage, is a delightful mix of Cappuccino meets Hot Chocolate. The menu centers on a variety of grilled cheeses, including specialty sandwiches, which represent each of the four Dark Side owners: Devyn Keith, Jarius Palmer, Jaray Wilson, and Joe Clark.

Devyn Keith is also a City Council member who represents District 1, an area that covers North Huntsville, including Alabama A&M University and stretching into the downtown core.

A native Huntsvillian, Keith is driven by a passion for public service and a deep connection to the people of his community, he is a true believer that “Huntsville is the best city this side of Heaven.”

“Devyn reached out to all of us,” said Jaray Wilson, one of the four owners. “One of the things that we talked about is wanting to give back to the community, in a different type of way. A way where people in the community could feel like they had a place where they could go to where they felt comfortable.

“We researched different things of that nature, we realized there was an opportunity in the coffee market, especially in Huntsville. There are several locally owned coffee shops, but none in North Huntsville. So, that’s what started the Dark Side.”

The initial plan was for a 3,000 square-foot coffee shop farther north on the parkway, across from Alabama A & M, near Winchester Road. When COVID-19 threw a wrench in those plans, the team took advantage of an opportunity to rent a space in the H.C. Blake plaza. Plans include opening the larger location this summer, while keeping the smaller location open, too.

Neighborhood Concepts

Neighborhood Concepts came into being more than 30 years ago. The nonprofit organization was formed out of a lawsuit involving public housing in Huntsville that was being torn down. The residents sued to have it rebuilt. Out of the mediation of that lawsuit, Neighborhood Concepts was created, completely autonomous from the Housing Authority, but tasked with rebuilding some of the demolished housing.

“For the first 20 years or so, Neighborhood Concepts focused on affordable housing,” said Executive Director Mary Ellen Judah. “But our board recognized that strong neighborhoods needed more than just affordable housing, they needed access to economic opportunity.”

About six years ago, Neighborhood Concepts set up a revolving loan fund and became certified by the U.S. Treasury Department as a Community Development Financial Institute.

“We were the first Alabama-born CDFI and we provide access to capital to small businesses and entrepreneurs in the 11 counties of north Alabama,” said Judah. “We are not designed to compete with the banks, but we are set up to provide financing for businesses that aren’t quite ready for a traditional business loan.

“We give them the loan for their business, we provide some technical assistance, and then we help them get ready to graduate to traditional financing. Or, in some instances, we might partner with a local bank to provide the financing.”

About two years ago, Keith contacted Neighborhood Concepts with the idea for Dark Side, she said.

“He came sat down and talked to us about it,” said Judah. “I was very impressed from the very beginning because these guys did their research, knew the market.”

There was a Starbuck’s on Mastin Lake Road and North Memorial Parkway, which was one of the few remaining retail chains that had invested in North Huntsville and it had closed.

“Devyn came in and he knew all the statistics for their sales, what was going on at that Starbucks, and what the need was,” said Judah.

Unfortunately, COVID happened and it slowed everything down. With the economic uncertainty, a lot of financial institutions were tightening their reigns.

“I never cease to be amazed at the ingenuity of young entrepreneurs in our community because Jarius, Devyn, and the rest of guys pivoted very quickly,” said Judah. “They said, ‘well, hey, we might not be able to do that today, but here’s what can do to start an investment in our community.’

“To me, not only was it just a wonderful thing for North Huntsville, but it’s a great idea to have a smaller investment to begin with and let’s see how it goes. And that gives us some good actual sales data that we can share when we’re ready to do the next phase.”

Many of the small businesses Neighborhood Concepts works with have minority owners who have been traditionally underserved. Neighborhood Concepts helps these small business owners recognize their entrepreneurial trade, but more importantly, they help them build wealth through business ownership.

“North Huntsville is starting to see things come back. Things like coffee shops are what make neighborhoods,” said Judah. “We were so excited when we received this grant from Wells-Fargo because it allowed us to provide not only some concessionary financing as well as some grant money.”

Wells Fargo Open for Business Program

Wells Fargo’s Open for Business Program focuses on increasing access to capital, providing technical expertise, and long-term resiliency programs for small business owners, with an emphasis on diverse small business ownership.

To date, the Open for Business Fund has deployed more than $84 million in philanthropic capital to Community Development Financial Institutions, which has helped an estimated 16,000 struggling minority-owned small businesses and helped to keep in place 50,000 small business jobs.

Created in July 2020, the Open for Business Fund provides capital and expertise for businesses hardest hit by the pandemic. Wells Fargo has donated approximately $400 million in gross processing fees from participating in the first round of the Paycheck Protection Program (PPP) and has set aside about $250 million of that funding for CDFIs.

“The Open for Business Fund was created as a result of Wells-Fargo donating the processing fees that we collected by our participation in the Paycheck Protection Program,” said Stephen Norris, Wells Fargo Regional Bank President. “Through the fees that we received, we were able to launch the Open for Business Fund. “

As many small businesses are still experiencing hardship from the COVID-19 pandemic, Wells Fargo is working to support its customers in another round of the PPP and continuing to provide additional small businesses support through its Open for Business Fund. For the next round of PPP, the company is committing not to take a profit and will continue seeking out opportunities to support small businesses most in need.

“I was absolutely thrilled when we were able to award Neighborhood Concepts with a $550,000 grant,” said Norris. “Knowing firsthand what Neighborhood Concepts is all about, it’s just a great example of how we can work together and help more diverse small business owners reach their full potential.”