Dipo Olowookere
A commitment of about $210 million has been channelled to small and micro businesses to address an urgent need from local communities following the spread of COVID-19.
The funding package was provided by the Visa Foundation and it comes in two phases. The first is $10 million designated for immediate emergency relief to support charitable organizations on the frontlines responding to the COVID-19 pandemic, while the second is a five-year strategic $200 million commitment to support small and micro businesses around the world, with a focus on fostering women’s economic advancement.
The funds will be disbursed to beneficiaries in each of the five geographic regions in which Visa operates: North America; Latin America and the Caribbean; Europe; Asia Pacific; and Central Europe, Middle East and Africa.
CEO and chairman of Visa, Mr Al Kelly, stated that, “As COVID-19 continues to unfold, communities are feeling the effects and need our immediate support.
“As a global company that operates a very local business, we recognize this need. We’re also committed to the long-term recovery and will continue to explore ways we can accelerate economic activity in line with our mission to help individuals, businesses and economies thrive.”
He further said, “Now more than ever, we must accelerate our support for small businesses on the frontlines driving economic growth.
“As many small and micro business owners are women, there will be a ripple effect supporting women’s economic advancement, which we believe is one of the most important ways to achieve gender equality, reduce poverty and foster inclusive economic development.”
On his part, President of the Visa Foundation, Mr Graham Macmillan, stated that, “$200 million in new financial resources demonstrates our continuing commitment to support small and micro businesses, with a focus on women’s economic advancement globally.
“When women thrive, communities thrive. We know this matters now more than ever as the global economy seeks to recover and rebuild.”
Small and micro businesses are the backbone of the global economy, accounting for more than 90 percent of worldwide businesses and contributing 50 to 60 percent of global employment.
There is a $300 billion annual credit deficit in funding for women-owned small and micro businesses, which is expected to grow given the recent economic turmoil unfolding due to COVID-19.
Through the $200 million small and micro business program, the Visa Foundation will provide $60 million in grants to NGOs dedicated to supporting small and micro business owners, many of whom are women, in every region where Visa operates.
The Visa Foundation will also allocate $140 million with investment partners that generate positive social and financial returns for small and micro businesses.
