Did you know that Black-owned businesses are least likely to receive funding? Comparatively, 40% of white-owned firms received all of the financing they sought, compared to 31% of Asian-owned firms, 20% of Hispanic-owned, and only 13% of Black-owned firms. Fortunately, many organizations and opportunities are working to fix this gap and elevate minority-owned businesses.

Here are eight loans and financing options designed to empower underserved communities.

1. Black Girl Ventures.

Black Girl Ventures (BGV) funds early-stage, revenue-generating businesses with under $1 million in revenue. Entrepreneurs who qualify have the opportunity to make a three-minute pitch to an audience, who all vote for their favorites by contributing money. The business with the most votes win, with the top three winners receiving $10,000, $6,000 and $2,000.

2. Restaurant Business Development Grant.

Feed the Soul Foundation’s Restaurant Business Development Grant program is geared toward food and service industry businesses that are at least 51% owned by someone who is Black, Indigenous, Latinx, LGBTQ+, military veteran, disabled or formerly incarcerated. In addition to financial support, Restaurant Business Development Program participants receive six months of consulting services and educational training to support the business maintenance. Take a look at the organization’s timeline to prepare an application so you can also be considered. 

3. Juntos Crecemos program.  

Backed by PepsiCo, the Greenhouse Collaborative Accelerator Juntos Crecemos program is a five-month guided program designed to empower Hispanic-owned food and beverage start-ups. Up to eight businesses are selected to participate in a five-month accelerator program and awarded a $20,000 grant. One company is even awarded an additional $100,000 at the end of the program. 

4. Scale-Up Pitch Challenge.

Every year, the National Black MBA Association (NBMBAA) hosts an annual Scale-Up Pitch Challenge. To apply, applicants must be NBMBAA members. Finalists compete for a $50,000 cash prize while second place receives $10,000, third place receives $7,500 and one winner is also chosen for the “People’s Choice Award,” worth $1,000. Applicants must prepare a three-minute pitch to describe the services and offerings of the business and how it differs from others.

5. 8(a) Business Development program.

There are many financing opportunities through the Small Business Association (SBA), some of which were created to support minority-owned businesses. The 8(a) Business Development program helps socially, and economically disadvantaged small businesses grow by limiting those who apply based on financial and demographic qualifications. It allows business owners of underserved communities to become solid competitors in the federal marketplace. To be eligible, business owners should be in business for at least two years.

6. REI Navigate program.

REI Navigate is a four-month program for business owners of color who are in the outdoor industry. Five to seven winners are selected to receive a $25,000 grant, and there’s the potential for additional investments from the REI Navigate fund. The program also provides the participants with one-on-one mentorship, group programming and the opportunity to present at a live demo event.

7. The Black Ambition Prize.

Founded by Pharrell Williams, American musician and philanthropist, the Black Ambition Prize provides funding for businesses that have at least one founding team member who identifies as Black or Hispanic/Latinx. The grand prize winner is awarded $1 million, and 15 additional businesses are awarded between $15,000 and $250,000. Winners also receive coaching and marketing opportunities along with workshops on pitching and leadership practices. Black Ambition asks all applicants to sign the Black Ambition Founders’ Pledge, which is a commitment to build diverse and inclusive companies, invest in others, and have a positive influence on the entrepreneurial landscape.

8. FirstBank’s small business loans, grants, and resources.

FirstBank is committed to helping small businesses grow. For instance, the bank offers financial and educational resources to minority-owned businesses, including:

• Small Business (SBA) 7(a) Loans — are government-backed loans that offer more favorable and longer terms than traditional loans. SBA loans can be used for diverse purposes, including real estate purchases, working capital, or business acquisitions.
• Small Business Empowerment Awards — is a season-long program, in partnership with the Phoenix Suns, designed to strengthen marginalized communities and minority-owned businesses across the Valley, through financial and promotional support.
• Multicultural Banking Centers (MBC) — alongside several Spanish and Asian Banking Centers, FirstBank’s MBC provides customers with banking services, financial literacy, and business success tools in their native or preferred language.
• Business Success resources — FirstBank has several financial resources, including account and loan offerings, treasury management tools, and more at efirstbank.com/goodbusiness.

These resources are just the tip of the iceberg when looking for financing programs for minority-owned businesses. For more tips and tricks, visit our Business Success page at efirstbankblog.com.

Subject to approval disclosure – FirstBank determines actual loan qualification only after receipt of a complete loan application and analysis of pertinent information, such as (but not limited to) credit history, income documentation, and property valuation.  Subject to approval.  Fees and restrictions may apply.  See any FirstBank location for complete details.

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