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For Your Small Business January 29, 2025

Old National Partners with KZCF, Room 25 for Small Business ‘Access to Capital’ Program

By Joe Kiser, President, Old National Bank Foundation

In the summer of 2023, a groundbreaking collaboration emerged in Kalamazoo, Mich., exemplifying the power of impact investing to address systemic inequities in access to capital for underrepresented entrepreneurs.

The partnership initiative was born from the efforts of the Kalamazoo Community Foundation’s (KZCF) Impact Investment Committee, Old National Bank (ONB), and Room 35, an entrepreneur support organization dedicated to fostering business growth in Michigan. Room 35 is renowned for its training programs, including the intense Blueprint Construction Business Accelerator, which equips BIPOC (Black, Indigenous, and People of Color)- and women-owned businesses with the tools to build capacity, expand their networks, and scale their operations.

Access to Capital for the Underrepresented

The Access to Capital Program specifically targets Black and Hispanic general contractors for support, pairing them with business coaching and technical assistance through Room 35 with lines of credit up to $50,000, facilitated through ONB. These credit facilities are secured by a $250,000 cash investment from KZCF, held in certificates of deposit at ONB. These lines of credit, combined with Room 35’s coaching, build capacity and create a holistic support system to help contractors thrive and compete.

All pilot applications are processed through ONB’s Empowerment Small Business Loan program, ensuring contractors gain real-world lending experience and feedback. If a contractor’s loan cannot be approved under standard terms, KZCF’s secured funds provide the necessary credit support to keep their business growth on track.

Small Business Loan Expertise

ONB’s Empowerment Small Business Loan Program has played a pivotal role in shaping the initiative, which overall represents more than just financial assistance; it’s a model for innovation in impact investing.

By combining Room 35’s capacity-building programs, ONB’s financial expertise and credit facilities, and KZCF’s commitment to equity, the program creates a pathway for systemic change. With potential to scale, the partnership offers a replicable blueprint for other communities and financial institutions to follow.

For more information about the Access to Capital Program, contact Joe Kiser at joe.kiser@oldnational.com.

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