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Welcome to Breaking the Blueprint
A blog series that dives into the unique business challenges and opportunities of underrepresented business owners and entrepreneurs. Learn how they’ve grown or scaled their businesses, explored entrepreneurial ventures within their companies, or created side hustles, and how their stories can inspire and inform your own success.
Less access to banking in Black communities and a history of discriminatory lending practices have made it harder for Black founders to secure loans or financial assistance.
According to a recent study, Black founders only managed to use 1% of venture capital in 2022. It’s an unfortunate truth, but it doesn’t mean that there isn’t funding out there for Black founders to make use of. In this piece, discover 37 funding resources for Black-owned businesses that can help you put your best foot forward.
Small Business Loans
1. Accion Opportunity Fund
This program offers mentorship programs, microloans, and a hubzone program that offers small business owners access to funding based on their needs. It connects low-income entrepreneurs, entrepreneurs of color, and women to affordable capital, educational resources, coaching, and business networks. Applications are accepted on a rolling basis.
2. Business Consortium Fund Loan
Business Consortium Fund Loan programs are for minority-owned businesses that cannot lock in financing through other avenues and are certified by the U.S. Department of the Treasury. Amounts range from $500 to $50,000. Interest rates are capped at 3%, and loan repayment terms can extend for seven years.
3. Community Development Financial Institutions Fund
This fund is part of the U.S. Treasury Department. CDFIs are financial institutions such as banks, credit unions, loan funds, microloan funds, or venture capital providers. These institutions provide residents and businesses loans funded by the U.S. Treasury Department to create economic opportunities in low-income communities.
4. DreamSpring
DreamSpring is a nonprofit serving minority small business owners in 27 states. It offers four different types of loans to provide support and help you re-start and re-open your business.
5. HerSuiteSpot
HerSuiteSpot is a digital platform for women of color entrepreneurs to get business training, coaching, and funding support. It offers multiple funding opportunities, including two microgrants.
6. Funding Circle
Funding Circle is a small business loan provider that offers small business loans in the US and UK.
Online Business Loans
1. Fast Break for Small Business
Legal Zoom has partnered with the NBA, WNBA, and NBA G League to offer a grant opportunity for Black entrepreneurs to take advantage of.
2. BlueVine
BlueVine is an online banking platform with short-term loan options and lines of credit.
3. OnDeck
This alternative lender offers loan options for those who need a company that will work across a broader credit spectrum.
Grants
1. iFundWomen
iFundWomen (iFW) is a funding resource specifically for women entrepreneurs. Its Universal Grant Program is a debt-free resource for you to use to start or support your business.
2. Shea Moisture
Shea Moisture offers $1M grants annually to small, Black-owned businesses across the health and beauty sector.
3. Hello Alice
Hello Alice’s Democratizing the Friend & Family Round grant aims to help women of color overcome the early stage funding gap that they often face.
Equity Crowdfunding
1. Kiva
This lending program is a nonprofit made with nontraditional borrowers in mind, and it’s an online lending hub that connects entrepreneurs to crowdsourced lending.
Private Equity Firms
1. Collab Capital
If you’re looking to build a sustainable, innovative business, Collab Capital is the investment fund for you.
2. Harlem Capital Partners
Based in New York City, this program has set a goal to invest in more than 1,000 diverse founders over 20 years.
Additional Resources
1. Chambers of Commerce
These organizations offer training and resources to help promote the interests of local businesses.
2. Farm Aid
This platform is a nonprofit organization offering an annual grant program that funds family farms and rural service organizations.
3. SCORE
Completely run by a network of volunteers, this organization has provided resources like education and mentorship to small business owners since 1964.
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