From left to right: Julia Green, owner of LaBella's Salon and Leticia Bezerra, OFN member Rennaissance Community Loan Fund’s commercial lender
Minority-Owned Hair Salon Opens in Mississippi Using Affordable Financing From CDFI
Client: Julia Green, owner of LaBella's Salon
Client Location: Gulfport, MS
CDFI: Renaissance Community Loan Fund
CDFI Service Area: MS, AL
Financing, with support from OFN’s Finance Justice Fund
Among challenges that many entrepreneurs face, access to affordable financing is one of them. It’s even harder for entrepreneurs of color and women, like Julia Green. Traditional banks often have strict requirements that these entrepreneurs struggle to meet, stifling their dreams of turning ideas into reality.
This is where community development financial institutions (CDFIs) like OFN member Renaissance Community Loan Fund (RCLF) play a key role. They fill financing gaps and provide affordable, flexible capital to communities underserved by mainstream finance.
Affordable Financing Helps LaBella’s Salon Expand to Second Location
After more than a decade of renting a salon space, Julia Green knew she was ready to take the next step in her entrepreneurial journey.
Looking to purchase and renovate a building for her new business in 2019, Julia sought guidance and financial support from RCLF, a CDFI whose mission is to promote community and economic development in underserved communities in Mississippi and Alabama. RCLF worked closely with Julia to provide financing to open her first location for LaBella’s Salon.
Located in the historically Black and now overall minority neighborhood of the Orange Grove area of Gulfport, Mississippi, LaBella’s Salon has provided various hair care solutions, from styling to treatments and more for the past four years. A Black and woman-owned small business, LaBella’s offers a welcoming atmosphere where clients arrive as guests and leave as friends.
As the salon became more popular and successful over the past few years, Julia began to consider expanding to a second location. Since she had a good experience with RCLF with the first location, she turned to the CDFI again to assist her in securing financing for her second property.
With her proven track record and RCLF’s ability to provide multiple loan options to fit the circumstances, Julia was able to close on another loan from RCLF and purchase a second building in December 2023. Not only did RCLF provide capital for the business, the CDFI also continues to provide business coaching.
The newest location of LaBella’s Salon will open in Spring 2024. In addition, Julia sells raw hair extensions and has a wig line. She also plans to launch a shampoo and conditioner product line.
“As a minority woman, I am so proud and happy I am Mrs. Green’s lender and that we are able to help her expand her business and serve more people on the coast,” said Leticia Bezerra, RCLF’s commercial lender. “I am thankful she trusted us again for her second location.”
Learn More about How OFN Members Provide Affordable Financing
Read more about RCLF on CDFI Connect, an online community for OFN members, allies, funders, investors and other CDFI industry supporters to network, collaborate, and learn.
In 2022, OFN members provided more than $10.7 billion in financing to people, markets, and communities underserved by mainstream finance. And that financing helped start or expand more than 850,000 small businesses and microenterprises, like LaBella’s Salon.
To learn more about the activity and performance of the CDFI industry, download OFN’s annual reference guide, Side by Side, and Inside the Membership fact sheet.
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