PeopleFund & Southern Dallas Development Corporation to Merge
Merger of Nonprofits to Benefit Small Businesses
Dallas – On Dec. 8, PeopleFund and Southern Dallas Development Corporation (SDDC) agreed to a statutory merger of the two organizations. Both are non-profit Community Development Financial Institutions (CDFI’s) dedicated to support underserved small business with loans coupled with business education and training.
PeopleFund, with corporate headquarters in Austin, serves the entire state with multiple office locations. Under the terms of the merger SDDC will become a wholly owned subsidiary of PeopleFund. The SDDC staff will continue to manage the City of Dallas’ two small business loan programs, Southern Dallas Development Fund, and the Dallas Business Financial Corporation, on a contractual basis.
Dallas-based Comerica Bank Senior Vice President Irvin Ashford, Jr., and PeopleFund Board Secretary, played an instrumental role in the transaction. He commented, “This merger is a winning proposition for SDDC, PeopleFund and the City of Dallas.”
SDDC President Charles McElrath was equally enthusiastic about the merger, saying “PeopleFund has the resources and support that will substantially increase our lending capacity in Dallas.”
PeopleFund President & CEO, Gary Lindner, lauded the merger, “SDDC will greatly enhance our existing Dallas presence. SDDC, along with our existing Goldman Sachs 10,000 Small Businesses partnership, has enormous potential to boost South Dallas small business owners.” The statutory merger agreement, approved by the respective Boards, will be filed with the Texas Secretary of State.
PeopleFund is a registered 501(c)3 nonprofit organization established in 1994. It is a U.S. Treasury certified Community Development Financial Institution (CDFI) and SBA certified lender. PeopleFund provides business loans up to $350,000 to Texas businesses that do not qualify for bank loans. It also provides client business assistance and education. The target market is minority, women, and veteran business owners and those residing in low to moderate income census tracts. Over 40% of current loans are to startups and non-profit organizations. Through access to capital and educational opportunities, PeopleFund creates economic opportunity and financial stability for underserved people to build healthy small businesses. PeopleFund inspires, educates, funds, and elevates entrepreneurs on the path to prosperity and the American dream.
Southern Dallas Development Corporation
The Southern Dallas Development Corporation (SDDC) was established in 1989. It is a 501(c)3 nonprofit organization and a community development financial institution. The mission is to stimulate economic growth and encourage financial literacy in southern Dallas through strategic business financing. SDDC has two subsidiaries, the Southern Dallas Development Fund and the Dallas Business Finance Corporation to make SBA 504 loans.