Macy’s has unveiled its new Shared Purpose, Unlimited Reach (S.P.U.R.) Pathways program to drive growth and investment for businesses owned by members of underrepresented groups that typically face barriers to capital. Macy’s has pledged to invest a total of $30 million — $20 million of its own supplier access fund and an additional $10 million — over the next five years, building upon its previous Mission Every One $5 billion commitment to support greater equity and diversity in its business by 2025.
S.P.U.R. Pathways, which was launched in partnership with Momentus Capital, aims to generate up to $200 million in funding for businesses led by members of underrepresented groups, with a variety of financing options such as growth equity capital and loans for working capital and commercial real estate. Through the program, $100 million in capital is projected to be generated for diversely owned growth-stage businesses. A Momentus Capital loan program is expected to create up to $100 million in capital access to businesses at every stage of development. The initiative will also provide educational resources to support growth.
According to a June 2022 Crunchbase article, startups with at least one Black founder had access to only 1.3% of total venture capital spending in the U.S. in 2021.
“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, creates an unparalleled opportunity within the retail industry,” said Raymond Guthrie, Chief Investment Officer and Head of Capital Deployment for Momentus Capital in a statement. “Access to capital and expertise fuels mutual growth and fosters wealth creation and entrepreneurship within historically underfunded communities.”
“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,” said Jeff Gennette, Chairman and CEO of Macy’s, Inc. in a statement. “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.”