Starbucks pushes job growth program

Starbucks asks customers to give at least $5 to jobs growth program

PORTLAND, Ore. (AP) -- Starbucks hopes customers will be willing to pay at least $5 more when they stop in for their morning cup of Joe.

Starting Nov. 1, Starbucks will begin collecting donations of $5 or more from customers to stimulate U.S. job growth through its "Jobs for USA" program. The Seattle-based coffee chain is collaborating with the Opportunity Finance Network, a nonprofit that works with nearly 200 community development financial institutions to provide loans to small businesses and community groups. Starbucks says 100 percent of the donations will go toward loans for firms and organizations that can add jobs or stem job losses.

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Loans through the network have supported everything from charter schools to grocery stores nationwide. The organization found that, even during the recession, more than 98 percent of the money loaned out has been repaid, which is in line with traditional lenders.

Through the program, businesses will apply to financial institutions, which along with the Opportunity Finance Network will assess their potential for adding jobs. Preference will be given to applicants who can add jobs within six months. An outside organization will audit the program within a year.

"We want to match up every person who has $5 to share with every person who can't spare $5," said Mark Pinsky, CEO of Opportunity Finance Network.

The effort has the potential to be successful, say some experts. Community institutions succeed, they say, because they understand the needs in the areas they serve.

"I think it's a really worthy effort," said Mark Zandi, chief economist at Moody's Analytics. "In theory, this is a great idea and should have impact."

Online: For more information, visit createjobsforusa.org or for information on Opportunity Finance Network and how to find a community development funding institution, visit opportunityfinance.net

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Or better yet go to a locally owned coffee shop and direcctly stimulate local economy.

You know what. At this point, I say go for it.

It's a private initiative, and the government obviously isn't doing enough right now to stimulate job growth. And honestly, I really don't think they're the right ones to do it.

This sounds about as good an idea as anything I've heard dreamed up.

Hell, if mid sized business could generate a few hundred thousand bucks or so, that's enough to hire an employee (or several depending on the type of jobs), and people in lower and middle class jobs don't save---they spend...money in the economy.

SO what they hell, why not?

I agree with you Paintsprayer...but honestly around my parts there aren't any "local" coffee shops...it's all Starbucks or Dunkin' Donuts.

Dan...I agree that at least it's a good idea and worth a shot. I'll give $5 to the cause...why the hell not?

"100 percent of the donations will go toward loans for firms and organizations that can add jobs or stem job losses."

Including the jobs required to run this nonprofit organization, I suppose.

This is the first I've heard of this, but I think it's great to see people (and corporation -- the two not being the same in my definition) doing things like this. I hate people that sit on their asses and complain that politicians arent doing enough. Why abdicate "doing something" to everyone else? We all play a part in the perpetuation or change in direction of our societies.

Starbucks obviously has access to a large group of people with access to discretionary spending (else they'd make their coffee at home and save 1-4 bucks), so this could be a small, perhaps symbolic, but useful help to many in getting umemployment under control.