The Visa Foundation has announced a commitment of two programmes totalling $210 million to support small and micro businesses and to address an urgent need from local communities following the spread of COVID-19.
A statement from its media office said the first programme of $10 million was designated for immediate emergency relief to support charitable organizations on the frontlines responding to the COVID-19 pandemic, such as public health and food relief, in each of the five geographic regions in which Visa operates. These regions include North America; Latin America and the Caribbean; Europe; Asia Pacific; and Central Europe, Middle East and Africa.
“As COVID-19 continues to unfold, communities are feeling the effects and need our immediate support,” said Al Kelly, CEO and chairman of Visa in the statement.
“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,” the statement added.
It said the second programme was 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 statement said thiis action expands the Visa Foundation’s long-standing support for small and micro businesses globally.
It stated that the funds from the Visa Foundation would provide capital to non-government organizations (NGOs) and investment partners supporting small and micro businesses.
Noting that 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, it said 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.”
“Now more than ever, we must accelerate our support for small businesses on the frontlines driving economic growth,” said Kelly, adding, “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.”
The statement further stated that through the $200 million small and micro business programme, 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, according to the statement, will also allocate $140 million with investment partners that generate positive social and financial returns for small and micro businesses.
“Two hundred million dollars in new financial resources demonstrates our continuing commitment to support small and micro businesses, with a focus on women’s economic advancement globally” said Graham Macmillan, President of the Visa Foundation.
“When women thrive, communities thrive. We know this matters now more than ever as the global economy seeks to recover and rebuild,” he added.