Common Capital, Inc.

Common Capital, Inc. is a nonprofit, community development financial institution (CDFI) based in Western Massachusetts. It was founded in 1990, originally known as the Western Massachusetts Enterprise Fund. The organization's mission is to strengthen local communities by creating economic opportunities for underserved populations, including low- and moderate-income individuals, women, people of color, and immigrants[2][5].

Purpose and Activities

Common Capital operates by providing loans and free business assistance to small businesses and nonprofit organizations that face challenges accessing capital from conventional financial institutions. The organization offers fixed-rate loans ranging from $1,000 to $300,000, with interest rates typically between 8.25% and 10%[4]. These loans can be used for various business needs, such as working capital, equipment purchases, and real estate acquisitions[4].

In addition to financial support, Common Capital offers comprehensive business assistance, including training and education on financial management, marketing, and human resource management[5]. This approach helps borrowers build sustainable businesses, create jobs, and contribute to the economic vitality of their communities[5].

Governance and Structure

Common Capital is governed by a volunteer board of directors comprised of local community leaders and business professionals. Since 2017, it has been a subsidiary of Way Finders, a nonprofit organization focused on housing and economic development[2].

The organization is certified by the U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund), a designation that reflects its commitment to serving underserved markets[2].

Impact and Achievements

As of its founding in 1990, Common Capital has issued over 800 loans totaling more than $32 million to small businesses in Western Massachusetts. These efforts have helped create or retain more than 2,000 local jobs[2][5]. In recent years, Common Capital continued to set records in lending and business assistance, focusing on supporting a diverse range of entrepreneurs, including startup businesses and those owned by women and people of color[5].