CLEVELAND, OH, June 19, 2019– In the third season of Cleveland Chain Reaction, the project’s partners are introducing a new investment structure that will improve the benefits for the winning small businesses as well as for the host neighborhood. This neighborhood economic development project matches growing small businesses with local investment and is taking place in the city’s Collinwood neighborhood. By the end of 2019, the Chain Reaction partners still aim to have five new businesses preparing to open in the neighborhood.
The project is produced by Cleveland Neighborhood Progress, the Council of Smaller Enterprises (COSE), and JumpStart, along with media partner WJW Fox 8. Including all investments, real estate transactions and jobs created, Chain Reaction will deliver up to $1 Million of economic impact into the Collinwood neighborhood.
New this year, JumpStart Inc. and the Greater Cleveland Partnership will each pledge $125,000 to invest in the winning small businesses. The partners will also create a set a standard terms for all of the businesses receiving an investment.
“We are excited to partner with Cleveland Neighborhood Progress, COSE and Fox8 in this work,” said JumpStart Partner, Core City Services and Outreach Lamont Mackley. “We are also excited to be investing in the winning businesses to provide them much needed capital to impact their neighborhood and to help create a set of standard terms for these investments.”
“Providing this type of access to capital will catalyze these five winning businesses and accelerate strategic development in the Collinwood neighborhood,” said Yvette Ittu, Executive Vice President at the Greater Cleveland Partnership.
Additionally, private investors from the community will be invited to the Business Pitch Showcase in August, where the Top 20 Chain Reaction applicant businesses will make their pitch for investment. These investors are welcome to join in with “side-car” investments to the partners’ selections. The private investors may invest a minimum of $10,000 in as many companies as they desire and must adhere to the standard terms that are established.
In creating this new investment structure, the partners are providing equal opportunity for all businesses receiving investment. This new format ensures that a minimum of $250,000 of initial investment is made to growing small businesses and opens the opportunity for an unlimited amount of private investment to follow.
“We’re thrilled that our partners are providing this investment. This is a development that we have all been discussing for some time now,” added Jeff Kipp, Director of Neighborhood Marketing for Cleveland Neighborhood Progress. “With this new investment structure, we are improving the chances for making a significant economic impact in Collinwood.”
Greater Collinwood Development Corp. (GCDC) is the local nonprofit organization that will serve as a resource to the partners, investors and small businesses involved with Chain Reaction season #3. The community development corporation leads community and economic development initiatives in the northern and southern portions of Collinwood as well as in the Euclid Green neighborhood.
Over $1.2M has been directly invested in small businesses through the first two seasons of Chain Reaction, which took place in Slavic Village (2017) and Old Brooklyn (2018).