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What's The Best Way To Get More Small Business Loans Today?
Black-owned businesses do not have equal access to financial capital compared to their white counterparts in the United States. According to the Minority Business Development Agency, the causes of this disparity are racial discrimination and unfair lending practices. This is why grants can be especially beneficial for black business owners.
Grants are funding opportunities, usually a fixed amount of money, issued by a variety of donors, including local, state, or federal governments. Grants are also made through non-governmental organizations such as corporations or public/private partnerships. By definition, grants must not be repaid and are not considered small business loans or forgivable loans. However, each recipient may have conditions on how the grant money will be used.
In this case, the criteria for small business assistance includes black ownership. Generally, every small business has additional grant requirements to meet. For example, a business may be located in a certain country or state, have a certain number of employees, have a social impact angle in its model, embody a certain value, have a minimum or maximum gross profit. Or have a founder from a certain demographic.
Grants are not always well publicized and may have short application windows. You can learn about these opportunities by networking with small business owners and through organizations such as the Minority Business Development Association (MBDA), the American Small Business Development Center Network, Hello Alice, the US Small Business Administration (SBA) and organizations such as Resources and National Minority Supplier Development. Council (NMDC). The SBA approves programs such as Small Business Innovation Research (SBIR), disbursing federal grants through other federal agencies such as NASA and the Environmental Protection Agency (EPA). Close the funding gap for underrepresented founders.
Investing In Black Entrepreneurship
Black and minority small business grants can take many forms, such as transferring a set dollar amount to a business's bank account, or tied to required participation in a workshop or program. Here are some examples of grant types for black entrepreneurs:
For many business owners, this may seem self-evident: a black-owned business is one whose leaders, founders, or owners are black. Therefore, they are black-owned businesses. But what happens when multiple business owners, a parent company, or multiple investors are of different races or mixed races?
Each grant may have its own definition for a black-owned business, but it basically boils down to this: black-led. According to the 2011 U.S. Census Bureau Survey of Business Owners: Black-owned businesses are "companies in which blacks or African-Americans own 51 percent or more of the business's equity, interest, or stock." When grant programs are open to minority business owners, or entrepreneurs of color, it usually means that 51% of the business owners are Black, Asian-Indian, Asian-Pacific Islander, Latino, or Native American. belongs to a composition. Such a team.
Grants for Black Business Owners are opportunities created specifically for Black entrepreneurs and Black-owned businesses by the United States government and private organizations. These private and federal funding opportunities open the door to minority grants, which can help black businesses grow and succeed and can be a stepping stone to closing the black-white wealth gap.
Building Supportive Ecosystems For Black Owned Us Businesses
Today's black-owned businesses have better opportunities to access capital and business financing due to laws such as the Equal Credit Opportunity Act, black-led CDFIs (Community Development Financial Institutions), and minority business development. Support has increased.
Applying for small business grants can be a daunting process that involves collecting tax returns, bank statements and income documents. To make sure your application is eligible, check if your business meets the grant requirements
Application form filling and submission. Remember, once you put together a grant application, it becomes easier to apply for future grant opportunities.
Here's a list of grants for black business owners—or organizations that offer grants—including eligibility, the application process, and sponsoring organization information.
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The NAACP and Nextdoor Kind Foundation have teamed up to create the Keep It Local Business Fund, a $5,000 micro-grant awarded to entrepreneurs of color. In addition to minority business support, business owners have access to training materials and promotions on Nextdoor. These grants include specific criteria, including businesses that have a community focus and annual revenue of less than $1 million. There is an online application process.
Twenty Black entrepreneurs have the opportunity to win $25,000 to grow their businesses through this NAACP PowerShift Entrepreneurship Grant, sponsored by John Dimond of Shark Tank. In addition to grant funding, each entrepreneur receives mentorship and brand visibility. Applications usually open in mid-October.
Vish Local is an e-commerce platform that enables physical picking and delivery of online purchases. Wish Local has created a $2 million fund to award local empowerment grants of $500 to $2,000 to black-owned, brick-and-mortar small businesses that are Wish Local partners. Flexible in terms of use of grant funds. Additional grant criteria include having an average annual income of less than $1 million and participating in local distribution if the grant is awarded (it's free).
The annual NBMBAA Scale-Up Pitch Challenge awards $50,000, $10,000, $7,500, or $1,000 from the National Black MBA Association. The competition enables startups to connect with early-stage investors and venture capitalists (VCs). The newly launched College Edition offers a top $50,000 prize to entrepreneurial college students. Eligibility includes team membership being a founding member and an active member of the NBMBAA.
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The NAACP and Bacardi committed $10,000 to help the BAR issue liquor licenses (or seek one) for black-owned businesses in the hospitality industry. In addition to funding, grant recipients have access to education and business support to accelerate their businesses. Applications are usually open from mid-June to late July.
The Coalition for Backing Black Business, with which it partners, is a group of companies that provide $5,000 Back Black Business grants to black-owned small businesses located in economically disadvantaged communities. Businesses must be affected by the pandemic, have between three and 20 employees and operate in specific sectors. (Business types that are not eligible are listed here.) Contributors also receive mentoring from successful business owners, as well as training. Top applicants will be awarded an additional $25,000 growth grant.
The NBA, WNBA, NBA G League, LegalZoom, and Acion Opportunity Fund have teamed up to provide $10,000 in quick breaks for small business grants to small business owners. Winners will also receive free access to the LegalZoom service. Applications are open through the 2022-2023 NBA season.
Galaxy of Stars, a membership-driven resource platform that supports minority small business owners (along with the organization that empowers low-income and minority-owned small businesses Secret Stars), awards Galaxy MicroGrants each year. The short application process asks for basic information such as contact information, ethnicity and whether you are a current or prospective business owner. It also promotes donation opportunities through its social media.
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Global entrepreneurship and investment platform SoGal is working with companies such as Walmart, Verizon and clean makeup brand Winky Lux to provide Black Powder startup grants of $5,000 and $10,000 on an ongoing basis. Grants are for black women and non-binary entrepreneurs who have a scalable, high-impact startup idea with "aspiration to become the next billion-dollar business." Application is a short online form.
Vistaprint, the Boston Celtics Shamrock Foundation, and the NAACP have joined forces to issue $25,000 Power Forward Small Business Grants to black-owned small businesses located in select areas of Massachusetts, Maine, New Hampshire, Rhode Island, Vermont and Connecticut. Grant recipients will receive design and marketing support. Applications are accepted on a rolling basis until the $1 million fund is exhausted.
Arkansas-based Kinetic Business, a fiber Internet company in Windstream, is offering up to $2,500 in Black Business Support Fund grants to black-owned small businesses in their service area. Eligibility for assistance includes a small business (no more than 25 employees) and for-profit, industry restrictions. Click the Check Availability button on this page to see if your business is in an eligible service area
Comcast NBCUniversal is awarding $10,000 in grants from the Comcast RISE Investment Fund to 100 small businesses owned by people of color. The business must be located in Chicago, Miami, Oakland, Seattle, or Washington, DC. Beyond money, these grants provide technology, media and marketing support. After verifying the eligibility, you can apply online.
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Black-owned businesses in Oakland, California can apply for grants through the nonprofit Oakland Black Business Fund (OBBF), in partnership with Bay Area Community Bank and the nonprofit Alliance for Community Development. It offers free access to business growth strategies by providing financial capital and technology support. There is a short online application process. The amount paid was not disclosed
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