TMF Funding Report 2023 v3 : simplebooklet.com

Progress onOUR STRATEGIC PLANAt the core of The Merchants Fund lies a steadfast commitment to an aspiraonal vision where Philadelphia’s talented and diverse merchants have equitable access to meaningful assistance, capital, and the other resources necessary to build business, family, and community wealth. Throughout the year, we’ve witnessed remarkable strides in aligning our goals with the evolving needs of our community. Thoughul iniaves and dedicated team-work have propelled us forward while ensuring that the businesses we support remain viable and able to serve their neighbors and community.THE MERCHANTS FUND TEAM 2024Sta & SupportJill FinkZyad HamamouGeorge PitsakisSomalisa Sahoo Chris StanishSimon WellmanVising Wharton Board FellowsFranck OuaaraStephen SerraoBoard of ManagersKersy AzocarTom GinsbergPeter Gonzales, PresidentBruce HotalingJames Johnson PieSteven King, Sr.Seulky McInneshinCarey Morgan, TreasurerShawn NesbitSamantha Porter, SecretaryElbert SampsonShalimar ThomasJoanna WinchesterAna Lisa Yoder, Vice PresidentDafan ZhangAdnan Zulqar

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A Message from ourEXECUTIVE DIRECTOR4THE MERCHANTS FUND 2023 FUNDING REPORTwww.merchantsfund.orgAs we reect upon the past year, we are pleased to present our 2023 Annual Funding Report, capturing the essence of our work and the progress made toward our vision of a thriving Philadelphia for small businesses and their owners. The following pages explore our commitment to impacul partnerships, strategic growth, and the resilience of small businesses in the face of unprecedented challenges.As TMF celebrates its 170th anniversary this year, we also consider our long legacy, parcularly in the context of the history of Philadelphia. Less than a week aer TMF’s founders led arcles of incorporaon, the Consolidaon Act of 1854 was enacted on February 2nd. It was a visionary response to the challenges posed by rapid urbanizaon - laying the foundaon for a consolidated Philadelphia, unifying city and county. This landmark legislaon reshaped Philadelphia’s future by creang a cohesive municipal government that fueled the city’s economic growth, fostering a sense of unity among its diverse communies, and ulmately paved the way for the vibrant city we cherish today. We now nd ourselves in another historic moment - welcoming Cherrelle Parker, the 100th mayor of Philadelphia, who, in January 2024, became the rst woman to hold this esteemed oce. We proudly recognize the signicance of her leadership in shaping the trajectory of our city. This milestone elecon echoes our city’s rich history of progress, diversity, and adaptability, while simultaneously serving as a poignant reminder that progress is not only reected in the pages of history but is an ongoing narrave that we acvely contribute to.The conuence of these historic events underscores the transformave power of a shared vision, the resilience of our city, and the importance of adapve governance in the face of change. It is with a spirit of collaboraon and a shared vision that we look ahead with opmism, condent that our collecve eorts will amplify our collecve impact and shape a future where Philadelphia’s small businesses not only survive but thrive. Jill C FinkExecuve DirectorThe Merchants FundOnward,

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GRANT MAKINGStabilizaonStabilizaon grants are made to businesses to support specic projects that will help the business with growth or to overcome an obstacle that limits its ability to operate at full capacity. In 2023, TMF made 49 stabilizaon grants totaling $307,000.In most cases, grants were used to either replace old, failing equipment or to add new equipment that would enable the business to generate new revenue or expand its services (without taking on new debt). In nearly all cases, the businesses had exisng debt or would not have been able to service new debt.COFFEE CREAM & DREAMS, FRANCISVILLEReceived a grant for new equipment:“With the addion of the refrigerator and the ability to oer addional cold drinks, [the grant] allowed us to generate addional revenue, which then enabled us to be able to connue to provide income for ourselves and support our families.”- Stephanie FordCOLMENA MULTISERVICES, FAIRHILL Received a grant to replace the HVAC system and install new tempered glass for security:“Being a single mother of 7, it has been tough for many reasons, but mostly income-related. [Because of the grant] I was able to spend more me with my family since I did not have to invest more of my me at work to generate this type of income needed for these improvements. This grant was very helpful.“- Lizmar Encarnación RosariProgram“6THE MERCHANTS FUND 2023 FUNDING REPORTwww.merchantsfund.orgDIBB’S BBQ, OVERBROOKReceived a grant to purchase new equipment:The impact of the TMF grant allowed our business to keep up with customer demand. We are able to produce more food to serve more customers. Without the proper equipment, we could only sell a limited amount of slow-cooked meats because the process takes 12-16 hours. The new grill provides a means to cook chicken on a separate grill. The grant also impacted our family in a posive way. This assistance increased income and stability beneng our family’s overall nancial situaon. Pung our son through college further contributed to our economic well-being by allowing us to pay a part of his tuion with the income derived from the business. - Darren Pearson

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YOUNG AMERICAN CIDER HOUSE & TASTING ROOM, GERMANTOWN/MT. AIRYReceived a grant to purchase equipment and supplies to expand wholesale distribuon:“The TMF grant got the three owners of Young American Hard Cider thinking on the larger scale of distribuon. It enabled us to begin the process of shiing from sales from one locaon to many locaons. We would not have had the funds available for many years to purchase all these supplies and materials without this grant. It jump-started a whole new sales division of our company.” - Kate KamanIMMORTAL VISION STUDIO, KENSINGTON Received a grant to purchase new camera equipment for the studio that can also be rented to other photographers for use: “The TMF grant impacted our community in a posive way. Not only did it allow our business to get back on track nancially but it lled a gap with local photographers. Photographers now have the resources in-house to create magic inside of Immortal Vision Studio.”- Clayton Wolfe Jr.“7THE MERCHANTS FUND 2023 FUNDING REPORTAB BEAUTY NAIL & SPA SALON, NORTH PHILLY Received a grant to expand to also oer hair care services:The grant had a signicant impact on me and my family, primarily because I now have the ability to generate more income and therefore provide for myself and my children in ways that I couldn’t before. I am feeling most opmisc about the potenal income that we can generate through the changes and addional services that we’ve added to the salon. I’m excited to be able to oer a more complete beauty experience. I would not have been able to take the risk of expanding my business if I didn’t have the money provided by The Merchants Fund, they made all of this possible. - Rayda Rodriguez STABILIZATION EMERGENCY OTHER$307,00049$894,35080$36,5006$1,237,850135 GRANTSTOTALS# OF GRANTS2023GRANT TOTALS

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GRANT MAKINGEmergencyThanks to a major investment from the City of Philadelphia Department of Commerce TMF has been able to drascally expand emergency support for businesses. This partnership was a standout achievement of the year, resulng in $850,000 in emergency grants distributed to 74 businesses. From disrupons and loss of revenue due to public works projects, res, the collapse of a bridge on Interstate 95, and other emergencies, these grants played a crucial role in stabilizing our local economy, supporng family businesses, and reinforcing the bonds that keep our communies strong and resilient. TMF made addional emergency grants totaling $44,350 to 6 businesses that did not qualify for funding under the program funded by the Commerce Department. For more informaon about the Emergency Grant Program, please visit hps://merchantsfund.org/impact.EXPECT LACE, MANAYUNK Received a grant following ooding due to street work by the Water Department:“The economy has been a factor in my family’s nances; to be able to use this grant for my business without seeking nancial support or burden my family has had a great impact and is greatly appreciated. I would not have been able to stay open. TMF has given me an opportunity to invest in inventory that helped me stay in business. We lost a lot of core inventory from water damage and core items make up a signicant amount of our revenue so to be able to replace that was a huge help for us.”- Shaw LewisProgram“www.merchantsfund.org8THE MERCHANTS FUND 2023 FUNDING REPORTNICE PHARMACY, KENSINGTONReceived a grant due to vandalism during civil unrest:We had 3 break-ins in 3 years where our place was ransacked. This [grant] denitely helped us decide to stay open and not permanently close because we had help.- Randal PolicareAWESOME LITTLE CUPCAKES, TACONY Received a grant due to the impact of the I-95 bridge collapse:Because of the grant I was able to keep my full sta and keep the business funconing fully. We ended up far below our previous year’s sales so I was able to stay open without too much fear.- Stephanie Lawrence“

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Photos submied by applicants demonstrang the extent of the disrupon.Street construcon that closed the W. Girard commercial corridor for four months last winter aected neighborhood businesses in myriad ways. Accessibility challenges limited deliveries of supplies, led take-out apps to drop local restaurants from their service, and customers to cancel appointments. The poor pedestrian experience caused a decline in walk-up business, hurng visibility, awareness, markeng, and percepons of safety. Unfortunately, the closure also fell across the primary holiday shopping season and interrupted the rst stage of recovery businesses were experiencing from the COVID-19 pandemic.Emergency relief administered by The Merchants Fund has been essenal - mely, exible, and comparable to the harm suered. Recipients have used funds to invest in equipment purchases and maintenance deferred by the disrupon, pay down debt incurred due to the loss of business, and create fresh markeng materials and campaigns to rebuild their customer base. The accessibility of the funding - available to new and veteran businesses - has helped each recipient apply the assistance in the way most appropriate to their needs. In addion to the money, for many business owners, the program represented an important signal that the city cares about their work, sacrice, and success. On mulple occasions, we have been told the grants shied their trajectory from contracng or ending a business, toward growth, renewal, and expansion.Patrick SherlockExecuve Director, Fairmount Community Development Corporaon (CDC)“PARTNER ORGANIZATIONFAIRMOUNT CDCPartners - from CDCs to the Commerce Department’s Oce of Business Services - play a crucial role in TMF’s ability to quickly get funding to businesses, particularly during emergencies. Fairmount CDC supported businesses by encouraging them to apply and assisng with applicaons. With their support, we were able to disburse over $100,000 to 7 businesses in 2023, with addional funding disbursed in 2024 after the program received addional funding.

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GRANT MAKINGDiscreonaryTMF reserves a modest amount of funds to make discreonary grants in situaons where there is an unmet need that doesn’t neatly t into an exisng grant program and where a small grant from TMF can have a meaningful impact. In 2023, we made 6 discreonary grants totaling $39,000. TWEE made for lile hands - a woman-owned makers’s studio in Philadelphia that produces handmade, eco-friendly art tools such as sidewalk chalk and vegetable-based paints - received a grant that allowed them to develop a new product line, including inventory, packaging, and safety-tesng.TWEE“This award made all the dierence in compleng this project and developing a new product. I believe the ability to show other Philadelphia funders that an organizaon as highly regarded as The Merchants Fund sees your growth potenal is denitely a door opener for addional supporters.”- Margaux DelColloProgramwww.merchantsfund.org10THE MERCHANTS FUND 2023 FUNDING REPORT

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PARTNERSHIP HIGHLIGHT: Mom Your BusinessIt is a rarity to encounter a single organizaon capable of comprehensively addressing the diverse array of needs commonly faced by businesses. Rather than aempt to fulll every requirement of merchants, TMF collaborates with other organizaons to ensure that businesses receive comprehensive support, ranging from capital to coaching and everything in between. Oen, mulple organizaons convene to collecvely address these needs, maintaining constant communicaon in service of the business owner. This collaborave approach minimizes the burden on business owners and guarantees they receive the necessary support.These symbioc partnerships are essenal for fostering a robust ecosystem capable of eecvely serving the small business community. In 2023, TMF joined forces with Mom Your Business, leveraging our respecve strengths to tackle the unique challenges faced by business owners. Addionally, we enlisted the support of partners such as Neighborhood Progress Fund and Greenline Access Capital when necessary to bridge any gaps in services. Ulmately, this collaborave and mutually supporve approach, dedicated to the advancement of small businesses, proves to be a successful model for everyone involved.Thanks to the generous grant from The Merchants Fund, Mom Your Business was able to double its award of its Founders to Funders Business Accelerator Pitch Contest. Our fourth cohort received our largest prize since we started and have used those funds to purchase inventory, hire contractors, and upgrade operaons. Thank you for the support and partnership.Tanya MorrisFounder/CEO, Mom Your Business“11THE MERCHANTS FUND 2023 FUNDING REPORT

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www.merchantsfund.org12THE MERCHANTS FUND 2023 FUNDING REPORTBEYOND THE GRANTThe TMF launched the Beyond the Grant iniave in 2020 and welcomed our inaugural cohort of businesses in 2021. In response to valuable feedback from business proprietors, the program model has been rened to priorize individualized coaching tailored to the unique requirements of each business and the goals of each merchant. Our coaching engagements are designed to address both short-term needs, such as lease modicaons before renewal, and long-term strategic imperaves. Spearheaded by George Pitsakis, the program benets from the collecve experse of a bench of coaches and professionals, including Chris Stanish and Rich Matosky, each with experse across various elds. TMF takes pride in assembling a team of coaches with rsthand experience as small business owners. This strategic approach not only expedites the establishment of trust but also ensures that our coaches possess rsthand insight into the many risks, challenges, and gracaons inherent in entrepreneurship.VAULT + VINE, EAST FALLS Received coaching in conjuncon with an emergency grant due to a 2+ months-long Water Department street closure:When Breana and her sister applied for an emergency grant they were only a few months into having purchased Vault + Vine from the original owner. The combinaon cafe and nursery meant so much to the community - and them - that they took a leap of faith when making the purchase despite not having any experience as business owners. It was only a few months later that the street in front of them - and then the sidewalks on either side of them - were closed for construcon. TMF was able to assist them with a grant as well as coaching and a crash course on owning a business. Breana worked with George to analyze prot margins across her various revenue streams and learned how to use nancial data to beer understand the business and its strengths and weaknesses.“[TMF] held my hand and walked me through everything. The support came at a pivotal moment, and it means the world to us. We really had to think about closing. Just seeing that the neighborhood and TMF wanted to help us… when other people have a hand in your success it feels like it’s meant to be. The grant allowed us to stay open and gave us just enough me to be able to get a bank loan. We’ve doubled our revenue since then; it really feels like a solid business and we can go the long haul and be here for years and years to come. TMF’s belief in our vision and dedicaon to helping businesses like ours thrive is truly inspiring. This grant is not just a nancial boost; it’s a vote of condence that fuels our determinaon to overcome challenges and succeed.”- Breana PefordProgram

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FISHTOWN PICKLE PROJECT, FISHTOWN Niki and Mike began working with George and Rich at a pivotal me in their business. Revenues had organically scaled, and new opportunies like retail spaces, large wholesale accounts, addional farmers market opportunies, and e-commerce soluons provided a plethora of opportunies. The business also faced challenges common in today’s economy: stang shortages, increased costs of direct inputs, changing consumer preferences post-pandemic, etc. Together, FPP and TMF business coaches streamlined operaons, created a strategic plan, and updated nancial projecons to ulmately secure loan funding, determine the proper path forward for the business, and use historical data to inform decision-making.“Prior to being connected with TMF and awarded this grant, my husband and I felt overwhelmed and lost on how to maintain our steadily growing business. The coaching and this grant have truly helped us beer understand our nances, how to develop sales projecons, and map out plans for growth. I am feeling skillful, savvy, capable, and empowered to grow our business with learned knowledge, experience and resources, including TMF.”- Niki Toscani13THE MERCHANTS FUND 2023 FUNDING REPORT

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ART HISTORY 101, MAYFAIR Jusn “Jay” Pross is one of TMF’s long-term coaching engagements. Jay received an emergency grant in 2021 aer his store was destroyed by a re. He began working with George at that me and the coaching connues to this day. This commitment exemplifies the need for consistent and long-term coaching engagements. Inially, the engagement addressed basic business issues like ling taxes properly and on me, implemenng a bookkeeping system, and creang standardized processes. The coaching then evolved to address higher-level needs: the creaon and implementaon of a strategic plan, the analysis of various revenue streams and their respecve gross margins and opportunies, and the expansion of the brand’s physical and digital footprint. When Jay was ready to purchase a building, TMF connected him with our CDFI partner Neighborhood Progress Fund for a mortgage. Moving forward, TMF will provide check-ins ranging from monthly to quarterly to the core team of AH101 to assist in the strategic growth and evoluon of the company and the generaonal wealth creaon of the owner. Every business owner needs a coach or mentor, another person to ri ideas o of - TMF coaches provide this valuable role to not only help a business survive but also thrive… and there’s no me limit to the relaonship.In Jay’s own words: “I am the Owner/Operator of Art History 101, a clothing brand from Philadelphia. Aer 11 years of business and running a small brick-and-mortar in Northeast Philadelphia, we suered a devastang re in which we lost everything and we didn’t have insurance. From that incident, I was linked up with The Merchants Fund. Our relaonship started by them giving me a $10,000 grant. The goal we set was to get Art History back on its feet and have me run the business like a business. I was connected with George Pitaskis from TMF and he became my business advisor and mentor. I was running a protable business with no knowledge of “back office” duties and George was very knowledgeable in that category. He taught me how important these things were to run www.merchantsfund.org14THE MERCHANTS FUND 2023 FUNDING REPORTBEYOND THE GRANTProgram$321,188$523,031$723,79720232022202161%YOYINCREASE2021-202272%YOYINCREASE2022-2023$900K2024Projections:Nick Sirianni, wearing an AH101 design during a press conference.ANNUAL REVIEW

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a successful business. We started with a strategic business plan and then we created a business org chart. Then, we went over job tles and descripons, bookkeeping, etc. and the goal was to get me out of the day-to-day operaons. George and I met every week consistently for the rst 9 months and at that point, we were ready to reopen our brick-and-mortar store at the same locaon on Frankford Avenue. Since reopening the business has grown tremendously. Sales increased and I’m out of the day-to-day operaon. We just recently purchased our own commercial property and upgraded our equipment. From 2022 to 2023 we increased our business sales by $200k. George and I sll meet monthly. He constantly checks in on me and the business and if I ever need advice or quesons answered he always responds. On September 27th, 2023 our retail store was broken into and looted. Looters threw a brick through our window and stole all of the merchandise that we had on our sales oor. This included some of the inventory we had on back stock and our register cash drawer. They cleaned us out. Jill from The Merchants Fund reached out right away and helped us with another grant to help us replenish our inventory and get us back up and running ASAP.I’m grateful for The Merchants Fund. They have been there for me in mes of need. I’ve gained so much business knowledge from George. It has been a huge factor in the growth and success of Art History. “15THE MERCHANTS FUND 2023 FUNDING REPORTLIVING OUR VALUESOn September 9, 2023, TMF Business Coach, George Pitsakis celebrated his wedding to Nikki McMahon on their bucolic farm in South Jersey. As an entrepreneur himself, George, the proud owner of Juniper Muay Thai, Philadelphia’s premier Muay Thai boxing gym situated in South Philadelphia, understands the signicance of championing local enterprises and independently-owned businesses.Unfeered by the constraints imposed by convenonal wedding venues and their designated caterers, George and Nikki consciously opted to spotlight their cherished small businesses—many of which have been beneciaries of TMF grants throughout the years—in their fesvies. Although this decision necessitated addional eort and meculous coordinaon, it underscored George and Nikki’s unwavering commitment to their principles and the intrinsic value of small enterprises.From start to nish, the wedding epitomized the essence of who George and Nikki are, including how they center their values when making decisions. Sky Cafe (TMF grantee)Mike’s BBQFishtown Pickle Project (TMF grantee)Mancuso & Son Italian GrocerAmish Pretzels (in jersey)Zsa’s Ice Cream (TMF grantee)

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About The Merchants FundThe Merchants Fund has provided support to Philadelphia merchants during mes of nancial hardship since 1854. Our vision is for a Philadelphia where small businesses and their owners thrive and where talented and diverse merchants have equitable access to meaningful assistance, capital, and other resources necessary to build business, family, and community wealth. We give life to this vision through the strategic deployment of exible capital including grantmaking and forgivable loans, values-aligned and mission-driven investments, and individualized business coaching for grantees. We priorize support to BIPOC-, immigrant-, and women-owned businesses operang in low- to moderate-income neighborhoods.SupportSince our founding over 170 years ago, TMF remains the only organizaon in the Philadelphia region whose sole mission is to provide direct nancial support to struggling merchants and small businesses. Won’t you join us? If you believe - as we do - that small businesses are vital to our neighborhoods and the lifeblood of our communies, please consider a tax-deducble donaon to The Merchants Fund.MERCHANTSFUND.ORG/DONATE

TMF Funding Report 2023 v3

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