Small businesses that were impacted by the COVID-19 pandemic were the greatest beneficiaries of services provided by the nonprofit lender DreamSpring in 2020.
When the pandemic hit early in 2020, DreamSpring quickly adapted to a fully remote work model and pivoted from business-as-usual to providing economic triage alongside an array of partners, which included community-based organizations, banks, federal and local government agencies, philanthropies, individual donors, and existing clients. DreamSpring’s ability to serve as economic first responders to the smallest, most vulnerable businesses in the crisis by providing access to Paycheck Protection Program (PPP) funds and other resources was crucial to keeping thousands of businesses afloat.
The results are impressive.
During 2020, DreamSpring helped to preserve nearly 12,500 jobs by providing close to 3,000 loans totaling over $78.3 million to small businesses in 17 states. This level of impact represents an increase over 2019 of 84 percent in loans provided and 262 percent in dollars lent by the Community Development Financial Institution (CDFI).
The Southwest Association for Indian Arts (SWAIA) was one such beneficiary. In a year when Native communities suffered disproportionately in every imaginable way from the pandemic, SWAIA sought assistance from DreamSpring to develop innovative strategies that would not only help Native American artists survive the immediate crisis but thrive after it. The Santa Fe-based nonprofit is known for producing the city’s annual Indian Market, an event that attracts some 150,000 attendees and serves as a primary vehicle for showcasing Native American arts. The pandemic prevented SWAIA from hosting the market in 2020, but the show went on virtually.
SWAIA received two PPP loans through DreamSpring. The funding enabled SWAIA to retain its full-time employees and helped provide web development support to its more than 1,000 members. While traditional sales outlets such as galleries were shuttered, SWAIA members generated more than $500,000 in online sales.
“DreamSpring’s unprecedented impact and overall effectiveness during 2020 is due to the dedication and passion of our community of clients, partners, supporters, board members, staff, and steadfast and ever-growing family of donors,” said Anne Haines, President and CEO. “By unleashing the power of our innovative lending platform alongside the engagement of our committed partners, we achieved far greater impact in 2020 than we had in any single year prior to the pandemic.”
DreamSpring provides rapid access to capital and customized wrap-around support to the most vulnerable small business owners, focusing on communities that include people of color, women, low- to moderate-income earners, veterans, people with disabilities, the LGBTQ community, the formerly incarcerated, and rural enterprises. Download the DreamSpring 2020 Annual Report, and find more information about loans on the DreamSpring website.