MBN USA
November 12, 2022
Macy's funding $200 million for underrepresented businesses
NEW YORK--(BUSINESS WIRE)-- Macy’s Inc. recently announced S.P.U.R. Pathways: Shared Purpose, Unlimited Reach, a multiyear, multifaceted funding program to advance entrepreneurial growth, close wealth gaps and shatter systemic barriers faced by diverse-owned and underrepresented businesses. This innovative effort, created in partnership with Momentus Capital, advances a long-standing Macy’s, Inc. commitment to underrepresented businesses and aims to galvanize the retail industry to invest in the next generation of entrepreneurs.
Through Macy’s, Inc.’s $30 million investment, S.P.U.R. Pathways will ultimately represent up to $200 million in access to critical funding for underrepresented businesses and will feature a comprehensive range of financing options from growth equity capital to loans for working capital and commercial real estate. Additionally, this effort will provide a full suite of educational resources, fueling a holistic supplier ecosystem and acting as a catalyst for outsized growth.
“S.P.U.R. Pathways: Shared Purpose, Unlimited Reach is dedicated to shaping the future of U.S. retail. Macy’s, Inc. has promoted underrepresented businesses and entrepreneurs for more than a decade and furthers that commitment today, pushing the U.S. retail industry to a new era,” said Jeff Gennette, chairman and chief executive officer of Macy’s, Inc. “As part of our social purpose platform, Mission Every One, this investment will provide access to capital resources that will advance the next generation of brands and service providers. By investing in high-growth underrepresented businesses at all stages of growth, we intend to create meaningful economic impact within our communities, while serving our customers.”
The lack of substantial capital deployment remains a persistent obstacle to underrepresented businesses’ success. As an example, in 2021, startups with at least one Black founder only had access to 1.3% of total venture capital dollars invested in the United States1. By facilitating equity investment and loan access opportunities, Macy’s, Inc. believes S.P.U.R. Pathways will drive accelerated business growth among diverse-owned and underrepresented businesses and entrepreneurs.
“With Macy’s, Inc., we have a unique opportunity to offer underrepresented businesses the resources to grow in a more equitable environment,” commented Raymond Guthrie, Chief Investment Officer and Head of Capital Deployment for Momentus Capital. “The Macy’s, Inc. supplier ecosystem provides access to comprehensive tools, industry experts, educational resources, and now with funding through our collaboration and the formation of S.P.U.R. Pathways: Shared Purpose, Unlimited Reach, creates an unparalleled opportunity within the retail industry. Access to capital and expertise fuels mutual growth and fosters wealth creation and entrepreneurship within historically underfunded communities.”
Over the next five years, Macy’s, Inc. is investing a total of $30 million, consisting of a $20 million investment in its own supplier access fund, and an additional $10 million investment, projected to provide approximately $100 million in capital for diverse-owned and underrepresented growth-stage businesses. A third channel creates a pipeline to a Momentus Capital loan program anticipated to provide up to $100 million in capital access to businesses at various stages of development.
Earlier this year Macy’s, Inc. introduced its social purpose platform, Mission Every One, developed to build on the company’s heritage of corporate citizenship and to achieve positive societal change.
Through Mission Every One, Macy’s, Inc. will direct $5 billion of the company’s spend, scaling through 2025, to the partners, products, people, and programs that help create a more equitable and sustainable future. A portion of this spend will support investments in business development programs, including S.P.U.R. Pathways and The Workshop at Macy’s, the retail industry’s longest-running retail development program, which has empowered more than 200 diverse-owned brands. Across Macy’s, Bloomingdale’s, and Bluemercury, with a network of more than 700 stores, digital shopping through online and app experiences, and new smaller off-mall store formats, Macy’s, Inc. fosters a comprehensive supplier ecosystem that advocates for businesses at all levels of growth and across a vast array of categories and size.
Full Suite of Tools & Resources
Macy's, Inc. offers suppliers access to a complete supplier ecosystem, including opportunities for mentorship through The Workshop at Macy's and strategic relationships with national advocacy organizations. In addition to financing through S.P.U.R. Pathways, businesses will have access to necessary tools and new opportunities to progress through various growth stages. This includes an advisory network of successful entrepreneurs around the country for strategic growth advice and help with credit improvement, business plans, financial reporting, daily operating challenges, business strategy, opportunity evaluation, and other personalized services. Advisory services through S.P.U.R. Pathways will also provide access to additional training and resources, including professional services, business templates, technology and software development tools, as well as online and in-person workshops focused on the specific needs and industry of each participating diverse-owned enterprise.
For additional information on this critical funding access, please visit macysinc.com/spurpathways.
About Macy’s, Inc.
At Macy’s, Inc. (NYSE: M), we are a trusted source for quality brands at great values from off-price to luxury. Across our iconic nameplates, including Macy’s, Bloomingdale’s and Bluemercury, we help our customers express their unique style and celebrate special moments, big and small. Headquartered in New York City, we operate one of retail’s largest e-commerce businesses integrated with a nationwide footprint to deliver the most convenient and seamless shopping experience. Our purpose is to create a brighter future with bold representation – so we can realize the full potential of every one of us. For more information, visit macysinc.com.
About Mission Every One
Mission Every One is Macy’s, Inc.’s commitment to create a brighter future with bold representation for all that empowers more voice, choice and ownership for colleagues, customers, and communities. Built on three pillars of impact – our people, communities, and planet, Macy’s, Inc. will direct $5 billion of the company’s spend, scaling through 2025, to the people, partners, products and programs to drive a more equitable and sustainable future. For more information on Mission Every One, visit macysinc.com/purpose.
About Momentus Capital
Momentus Capital is transforming how capital and investments flow into communities to provide people access to the capital and opportunities they deserve.
Through our family of mission-driven organizations, including Capital Impact Partners, CDC Small Business Finance, and Ventures Lending Technologies, we are working to reinvent traditional financial systems that have failed to address systemic issues of inequality, economic empowerment, and the widening racial wealth gap.
Each organization under the Momentus Capital brand will still operate as separate entities, but their clients will now have access to more resources and products. We offer a continuum of financial, knowledge, and social capital to help local leaders build inclusive and equitable communities and create generational wealth. This includes a comprehensive package of loan products, impact investment opportunities, training and business advising programs, and technology services that advance locally led solutions.
Leveraging 80 years of combined experience, a portfolio of nearly $3 billion, and strong community engagement, the family of companies has delivered more than $23 billion in financing, created and preserved 250,000 jobs, and served 12,000 small businesses and five million people across their history. With headquarters in Arlington, Virginia, and San Diego, California, Momentus Capital operates nationally with a focus on larger urban areas and cities in Arizona, Michigan, Nevada, New York, Texas, and Washington, D.C.
[1] Gené Teare, “VC Funding to Black-Founded Startups Slows Dramatically as Venture Investors Pull Back,” Crunchbase News, June 16, 2022, https://news.crunchbase.com/diversity/vc-funding-black-founded-startups/#:~:text=Two%20companies%20with%20a%20Black,a%20valuation%20of%20%242.5%20billion.
View source version on businesswire.com: https://www.businesswire.com/news/home/20221104005637/en/
Macy’s, Inc. Communications
Macy’s, Inc. Investor Relations
Source: Macy’s, Inc.
Released November 7, 2022
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