Connect with us

Business

How to Build a Mission-Driven Lending Business

mm

Published

on

There are lenders and then there are mission-driven lenders. And if you get excited thinking about the latter, there’s no reason why you can’t build a business around this. The key is to develop a pragmatic approach that allows you to grow in a very specific trajectory.

What is a Mission-Driven Lender?

Mission-driven lenders, also referred to as Community Development Financial Institutions (CDFIs), are organizations that commit to working with communities and businesses that traditional financial institutions historically under-served. This includes small businesses, non-profits, and entrepreneurs in low-income communities that lack resources. A mission-driven lender can be a credit union, community bank, nonprofit organization, or even a venture capital fund. 

“They typically raise the money they lend through grants, low-interest loans, foundations, the government or banks looking to satisfy Community Reinvestment Act requirements,” Venturize explains. “CDFIs are very focused on community, targeting their funding to small businesses, microenterprises, nonprofit organizations, commercial real estate and affordable housing.”

Some mission-driven lenders even have their own revolving loan funds that are targeted toward very specific regions, states, or industries. They make low-interest loans to companies in these areas that would not otherwise qualify for bank loans. This type of lending is usually accompanied by mentoring and other support to increase their chances of being successful. 

CDFIs often participate in 7(a) loans through the Small Business Administration’s Community Advantage Program. This allows them to award loans up to $250,000. Others use venture capital funds that may or may not provide equity in return. 

4 Tips to Becoming a Mission-Driven Lender

Every mission-driven lender has its own specific focus. However, they’re all organically constructed with the purpose of bettering specific communities by making it easy for good ideas to flourish. If you’re interested in living out this goal as a mission-driven lender, here are a few specific things you need to do.

 

  • Make Sure You Know Your Why

 

While all mission-driven lenders have the same overarching purpose, the specific goals, vision, and mission of each lender will differ. It’s imperative that you get clear on the why behind what you’re doing.

Entrepreneur Michelle Sun asks, “Why do you want to build what you are building? What does success look like to you? Is it measured by impact, financial success or flexibility of your work hours? Every entrepreneur has a different ‘why.’ Get clear on these at the get-go, and refer back to them along your journey.”

Once you know your why, you can move on to other aspects – like surrounding yourself with other people who believe in your mission.

 

  • Build a Team of Like-Minded People

 

Diversity is good when building a team. You want people who think differently, come from different backgrounds, and bring unique strengths to the table. However, this is one business where you need like-minded people. When we use the term “like-minded,” we don’t mean everyone thinks exactly the same. Instead, we mean everyone is on the same page regarding the mission, goals, and desires. Everyone has a passion for seeing underserved communities and entrepreneurs elevated. That’s the goal.

 

  • Use the Right Tools

 

So much of modern lending is about technology and automation. And as a mission-driven lender, you need to make sure you’re using the right tools. In other words, you need tools that support and align with your mission. You might have to look a little harder to find these tools but, believe it or not, they exist.

SPARK loan origination software, for example, is designed to work with mission-driven lenders. Features include non-profit pricing and program support. They’re also the only loan origination technology company in the industry that operates as a Public Benefits Corporation.

 

  • Put Yourself Out There

 

You can build the best mission-driven lending practice in the industry, but if the community doesn’t know you, it’s a waste of time and money. Make sure you’re putting yourself out there. This includes grassroots marketing, advertising, and constant networking. Make your name known!

Get Started Today

Mission-driven lenders exist to close the financial chasm and fill in the opportunity gaps that exist in most communities. If you’re interested in making your community or industry a better place, being a mission-driven lender is a great place to start. And if you build your organization with a strong foundation, good things will happen for you!

The idea of Bigtime Daily landed this engineer cum journalist from a multi-national company to the digital avenue. Matthew brought life to this idea and rendered all that was necessary to create an interactive and attractive platform for the readers. Apart from managing the platform, he also contributes his expertise in business niche.

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Interview with Jason Ho, CEO of Teklium: A Vision for the Future of Technology

mm

Published

on

Photo courtesy of Teklium 

By Mj Toledo

There is a wealth of experience behind Teklium, and it is embodied in its chief executive officer (CEO), Jason Ho. His educational foundation was laid at National Chiao Tung University and Pennsylvania State University, where he developed his skills in electrical engineering. With over 400 patents to his name, he has played a key role in advancing semiconductor technologies and artificial intelligence (AI).

From leading custom chip design for the F35 Fighter Jet to innovating at Teklium, Ho’s work has been adopted by major corporations worldwide. In this interview, he shares his vision for the future of technology and how Teklium’s developments fit into this broader landscape.

Q: Hi, Jason. For those who may not be familiar with Teklium, could you tell us more about your company?

Jason Ho: Certainly. Teklium is a technology company focused on improving AI and semiconductor technologies. Our mission is to create self improving AI systems and hardware that can tackle various technological challenges and shape the future of multiple industries.

Q: You hold over 400 international patents, with one of your most notable innovations being hydrogen battery technology. What inspired you to promote this sustainable transportation solution?

Jason Ho: I’ve always been deeply interested in finding sustainable energy solutions, especially in transportation. Traditional lithiumion batteries have clear limitations, both in terms of performance and their environmental impact due to resource mining. Hydrogen batteries present a promising alternative, offering both environmental benefits and faster refueling times, which could make electric vehicles more practical and appealing.

Q: What drove you to focus on hydrogen battery technology specifically?

Jason Ho: My collaboration with Mark Bayliss, President of Visual Link, played a significant role. Mark introduced the concept of a closed loop hydrogen system, and our joint efforts resulted in the development of a hydrogen battery technology that we believe can provide a clean and safer alternative to lithiumion batteries. This inspired me to continue refining the technology, working with Visual Link to bring it to market.

Q: How do you see your company’s hydrogen battery technology impacting the electric vehicle industry in the next decade?

Jason Ho: I’ve thought about this a lot. Our hydrogen battery technology has the potential to revolutionize the electric vehicle industry by offering a more efficient and sustainable energy source. The ability to refuel quickly, combined with the technology’s adaptability to a wide range of temperatures, could make electric vehicles far more practical and attractive to consumers in the long term.

Q: Can you explain the significance and potential impact of Teklium’s closed loop hydrogen energy system on global energy consumption?

Jason Ho: The closed loop hydrogen energy system is groundbreaking because it enables onsite hydrogen generation through water electrolysis, eliminating the need for external supply chains. This drastically lowers energy consumption and minimizes environmental impact by recycling water in a continuous loop. The system offers an environmentally friendly solution for industries beyond transportation, including energy storage and telecommunications.

Q: What challenges do you foresee in scaling up hydrogen battery production, and how does Teklium plan to address them?

Jason Ho: Scaling up hydrogen battery production comes with significant challenges, including the development of necessary infrastructure, reducing production costs, and ensuring safety standards. At Teklium, we plan to address these obstacles by partnering with industry leaders to build the required infrastructure and by investing in research to lower costs. We’re also committed to implementing rigorous safety protocols to ensure the technology performs reliably.

Q: How does Teklium’s strategy for AI infrastructure differ from traditional approaches?

Jason Ho: At Teklium, we’re taking a different approach by exploring ways to develop advanced materials and technologies that could improve the performance and efficiency of AI infrastructure. We’re focused on moving beyond traditional silicon based systems and envision a future where we can create three dimensional chip structures that significantly reduce data movement and energy consumption. By integrating memory and processing capabilities, we believe we can revolutionize AI workloads.

Q: Teklium has ambitious plans for extending Moore’s Law. Can you elaborate on how these plans could transform the semiconductor industry?

Jason Ho: Siliconbased chips are nearing their physical limits, so we’re exploring technologies that could allow us to scale transistor density both vertically and horizontally. By adopting these new approaches, we aim to significantly increase chip performance and, in doing so, challenge the traditional expectations of Moore’s Law. We also envision a future where chips are reusable and can be reprogrammed over decades, which could reshape the semiconductor industry’s business model in terms of sustainability and efficiency.

Q: What environmental benefits could Teklium’s technologies bring, particularly in reducing carbon emissions and resource consumption?

Jason Ho: Our innovations could have a profound impact on the environment. We’re committed to developing technologies that reduce resource consumption and minimize waste. By creating more efficient manufacturing processes and extending the lifespan of chips, we hope to significantly reduce electronic waste. Our work on AI infrastructure could also cut energy consumption in data centers by as much as 60%, which would translate into substantial reductions in carbon emissions. And, of course, our hydrogen battery technology offers a clean energy storage solution that could accelerate the adoption of renewable energy sources.

Q: Aside from electric vehicles, what are some other exciting applications of Teklium’s hydrogen battery technology?

Jason Ho: While electric vehicles are an obvious application, there are so many more exciting possibilities. Our hydrogen batteries could serve as large scale energy storage solutions, balancing grid loads and supporting renewable energy sources like wind and solar power. They could also power remote cell towers and data centers in areas where traditional power sources are unreliable. In aerospace, these batteries could enable long range drones and even electric aircraft. The potential applications in disaster relief and military operations, where portable and reliable energy is critical, are also very exciting.

Q: How does your collaboration with companies like Nantero and Visual Link advance Teklium’s technological developments?

Jason Ho: Our collaboration with Nantero is allowing us to explore advanced memory architectures, while our partnership with Visual Link offers crucial insights into practical applications and market needs. Visual Link also helps us navigate regulatory challenges, ensuring our innovations are commercially viable and compliant with industry standards.

Q: Teklium is involved in the concept of AI City in partnership with West Virginia Data Center Group. Can you tell us more about the vision for this project?

Jason Ho: AI City is an ambitious concept that we’re working on with the West Virginia Data Center Group to turn into reality. The idea is to create an intelligent infrastructure that incorporates cutting edge technologies in AI and data centers, optimizing everything from energy usage to communication networks. We envision a city that can learn and adapt to the needs of its residents, reducing inefficiencies and improving quality of life. It’s still in the planning stages, but we’re confident it can become a reality in the near future.

Q: What are your long term goals for Teklium, and how do you see your inventions influencing future generations?

Jason Ho: My long term vision for Teklium is to become a leader in sustainable technology solutions. We aim to continue pushing the boundaries of AI, semiconductor technology, and energy solutions. I want our innovations to inspire future generations to tackle global challenges like climate change and resource scarcity. Ultimately, I hope Teklium’s work contributes to a more connected and sustainable world.

While Teklium’s advancements may take time to fully realize, they open up exciting possibilities for addressing critical challenges like energy consumption and sustainability. Under Jason Ho’s leadership, Teklium is poised to make a significant impact on the future of technology and the environment.

Continue Reading

Trending