Wells Fargo has contributed towards a $70 million fund, created by Hello Alice and the Global Entrepreneurship Network (GEN), which is designed to improve access to credit for small business owners.

The fund is part of the equitable access programme, which provides credit and financial education to entrepreneurs overlooked by traditional banks or who have credit challenges.

The bank provided the initial capital for the fund to Hello Alice, which is a FinTech platform focussed on providing smaller companies with more credit opportunities.

The fund is managed by GEN and aims to address the demand for credit from entrepreneurs belonging to marginalised groups. This includes those with disabilities, veterans and people from a minority ethnic background.

According to data from Hello Alice, only a quarter of small business owners from marginalised groups have applied for a business credit card, yet 85 per cent of these applications were denied due to poor credit or lack of credit.

"Small businesses are a critical contributor to the economy and to building generational wealth," said Otis Rolley, president of the Wells Fargo Foundation. "We need to create more pathways for historically marginalized small businesses to grow and prosper.

“We are honoured to join forces with Hello Alice, GEN, and the other partners involved to take one step closer to making equitable access to credit and capital a reality for small business owners across all industries."

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