Helping dreams grow: Grants target funding gaps for black entrepreneurs

When small business owners are asked about their top challenges in operating and growing their enterprises, one answer rises to the top: access to capital.

Industry experts say that struggle is especially acute for Black and Brown entrepreneurs, who continue to face a persistent financing gap.

“There is an estimated $40 billion annual gap in unmet financing for BIPOC-owned businesses and $1 trillion nationally for small businesses overall,” said Carolyn Rodz, CEO and co-founder of Hello Alice. “This means there is a significant need and opportunity for grant programs across industry sectors and demographics, and we’re seeing more enterprises and financial institutions invest in these kinds of programs.”

Founded in 2017, Hello Alice is a free online platform created to tackle the inequities and barriers that small business owners encounter, particularly the lack of capital. The company focuses on supporting what it calls the “New Majority” — women, people of color, LGBTQ+ individuals, veterans and people with disabilities.

Through its Funding Center, Hello Alice connects entrepreneurs to grants and fair-market loans tailored to their business type, location and industry. Rodz said competition is fierce, often involving thousands of applicants, and success depends on how well entrepreneurs can demonstrate focus and readiness.

“Each program is different, but ultimately, you need to be clear about your vision, proof of concept and path toward growth,” Rodz said. “The more clarity and credibility you offer, the more your application will stand out. Know your business plan and numbers inside and out, and do your research on past award recipients to understand what that specific program is in search of.” 

The AFRO compiled a list of current grant programs open to small business owners who are seeking funding and support. 

Wish Local Empowerment Program

Wish Local, a program connecting small businesses with customers from the Wish shopping app, will deliver funding ranging from $500 to $2,000 to Black-owned brick-and-mortar stores across the U.S. The money comes from a $2 million fund that was created by Wish Local to support nearly 4,000 small business owners. There are now requirements on how recipients can spend the funds they receive. However, the organization recommends they use the money to maintain their workforce, pay rent or inventory costs, connect with new customers or benefit the community. 

Hustler’s MicroGrant

Deja “Deja Vu” Parker, a nationally syndicated media personality, has teamed up with HerSuiteSpot, a digital platform created to advance women of color entrepreneurs, to create the Hustler’s MicroGrant. The program is designed to support U.S. small business owners, with a special focus on minority and women entrepreneurs. The $1,000 grants are awarded on a monthly basis. Applications are taken on a rolling basis. 

Just Thrive Program

Justworks, a human resources and payroll platform for small businesses, has launched Just Thrive to support enterprises that are at least 50 percent owned by underrepresented founders and employ at least two W-2 team members. The company has partnered with The Well Work, an organization dedicated to empowering Black women and non-binary founders, for the program. The funding can be used toward payroll, human resources tasks, compliance and more. Applications are accepted on a rolling basis.

This article originally appeared here.

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