Resources for Black-Owned Businesses
Statistics show that just over 4% of American businesses are in fact black owned. Not only that, but those black owned businesses that do get set to launch, do so with less capital starting out than their white counterparts. And while right around seven percent of white owned businesses procure funding during their first year, for black owned businesses that number is only about one percent. Obviously, some disparities do exist. Given our current climate, these numbers are coming into play more and more as the pandemic takes it toll on black owned businesses across the country.
Studies have shown that among the hardest hit during the crisis were small black owned businesses.
Some estimates suggest that minority owned companies were twice as likely to close for good. And versus white companies, black firms received approximately twenty percent of PPP proceeds that went out. The good news though is that there are resources for black owned businesses who are finding that now more than ever, they need additional cash to keep their companies afloat. Below are a few programs that specialize in working with minority owned organizations.
This is a preliminary place for all business owners to start. You can search through thousands of federal grants available — and many specifically for black owned businesses. The site also goes into detail about the application processes involved.
The Minority Business Development Agency (MBDA)
The Minority Business Development Agency (MBDA) is connected to the Department of Commerce and is geared to minority owned businesses. What can you find here? There is a ton of information regarding available grants and loan programs for minorities. Among the more popularly accessed: Enterprising Women of Color Grant and the Minority Business Enterprise Inner City Innovation Hub Grant.
The National Minority Supplier Development Council (NMSDC)
The (NMSDC) is a non-profit specializing in helping minority owned businesses across the country. There is a grant called the Business Consortium Fund which can be used by those minority businesses that have been certified as such.
Another nonprofit, Accion, offers resources and ways for business owners to connect to one another and other entrepreneurs as well. They also do have a minority owned business loan program.
Foundation for Business Equity (FBE)
The FBE has a Business Equity Initiative program; this is intended to provide needed funding to Black and Latino owned companies. They were quite responsive throughout the crisis and consequently created an emergency fund for those minority owned businesses who realized revenues of at least 250k and were based in Massachusetts.