Bank One Alliance Offers Channel for Venture Funds

The U.S. Hispanic Chamber of Commerce (USHCC) and Chicago-based Bank One Corp. have announced an alliance to channel venture capital and credit to the nation’s Latino entrepreneurs. Dubbed “Alianza: Gateway to Capital,” the alliance includes formation of a venture capital fund for businesses that are 51% Latino-owned with $4 million or more in annual revenue.

Bank One has pledged an initial $5 million to the fund, with a promise to raise $5 million more from investors.

Latino-owned businesses are growing in number, revenue and employment but face hurdles accessing capital, particularly equity. The fund aims to address that, said U.S. Hispanic Chamber of Commerce President George Herrera. The Washington-based organization represents 200 Latino chambers nationwide, with a collective membership estimated at 300,000.

Other highlights of the alliance: A USHCC-branded Visa and Mastercard program that earns cardholders discounts while directing affinity reward dollars to the USHCC. And a broadened rewards program that directs resources to the USHCC based on member account balances.

In exchange, Bank One will receive banner sponsorship of “Hispanic Business Today,” a monthly television program owned by the USHCC that airs on NBC in 32 U.S. markets. Bank One, the nation’s third-largest provider of small-business loans, was one of the first banks to cater to Latino consumers through bilingual promotional materials, tellers and a Latino-themed check series.