Black businesses are three times more likely to be turned down for bank loans than White businesses, according to the Minority Business Development Agency.
Because of this, one in four Black-owned firms forgo applying for credit, with 56 percent of those firms saying that they did not want to accrue debt and 60 percent saying they felt like they would be turned down if they applied, found a report by the Federal Reserve in 2020.
Grants are a great alternative to help African-American entrepreneurs fund their businesses. Here are some available grants for Black businesses.
Los Angeles County Business Small Business Rent Relief
If you have a business in Los Angeles County you might be eligible for rent relief. L.A. County is giving up to $40,000 in rent relief to businesses that have fallen behind in rent payments because of the COVID-19 pandemic. Business owners must have businesses in unincorporated L.A. County, have nine or fewer employees, have less than $1 million in revenue, and have lost 25 percent in revenue over the past year. Entrepreneurs have to hurry and apply by Nov. 24 here.
SBA Targeted EIDL Advance
Here’s a Small Business Administration fund just for small businesses with fewer than 500 employees. The Targeted Economic Injury Disaster Loan Advance is similar to a grant and helps small businesses impacted by the pandemic.
The U.S. Small Business Administration is giving $10,000 in funds to small businesses with fewer than 500 employees. Applicants must first apply for the COVID-19 EIDL loan before applying for the funding advance. Business owners don’t have to accept or be approved for the loan before getting the Targeted EIDL Advance. The deadline for application is Dec. 31. The full eligibility requirement and application can be found on the U.S. SBA website.
To read about more funding opportunities, click here.
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