Grants and Venture Capital Opportunities for Black entrepreneurs
By Karen Doyle, Hiscox Insurance
Starting a business isn’t easy or cheap. Financing your business dream can be the most challenging part. There are many options, but the best one is grants – infusions of cash that you don’t have to pay back. There are many grants available - here’s what we found to support Black-owned small businesses.
Here are some grant opportunities for Black entrepreneurs
Fast Break for Small Business provides grants and services to support small businesses in underserved and underrepresented communities. The program, a collaboration by LegalZoom, the NBA, WNBA and NBA G League, accepts applications for $10,000 grants and up to $500 in LegalZoom services two times per year. Applications will reopen later this year, and you can sign up on the website to be notified.
The Power Forward Small Business Grant, a collaboration of Vistaprint, the Boston Celtics Shamrock Foundation, and the NAACP, provides $25,000 grants to Black-owned small businesses in New England on a rolling basis. Grant recipients can be featured on co-branding platforms nationwide and receive marketing and design resources to help their businesses grow.
The Sage Invest in Progress Grant is a partnership between Sage and the BOSS network, which will provide 25 grants of $10,000 each to Black women entrepreneurs. Applicants must have been in business no longer than five years. Grant recipients will also receive a 12-month program of education and mentorship, providing coaching and connections and removing barriers to capital.
The National Black MBA Association Scale Up Pitch Challenge awards cash prizes of up to $50,000 to scalable startups in its annual pitch competition. Applications have not opened yet for 2024, but last year’s applications opened in June, so check the website for details.
The Keep It Local Business Fund is a collaboration of the NAACP and the Nextdoor Kind Foundation. This program awards $5,000 microgrants to entrepreneurs who are strengthening their local communities. This grant is administered in partnership with Hello Alice.
The Black Business Support Fund Grant program offers grants of various sizes to new or existing Black-owned businesses with 25 or fewer employees. This grant is sponsored by Kinetic Business by Windstream, and businesses must be located in their coverage area, which comprises 18 states.
Google for Startups Black Founders Fund offers Black-founded businesses cash awards of up to $150,000 plus dedicated support via Google for Startups Cloud Program. Black-owned businesses worldwide that have a tech-driven, scalable product can qualify for this program, and applications are accepted on a rolling basis.
Venture Capital Opportunities
Sometimes a grant isn’t the best option for your business. Venture capital investments can take many forms, but typically are an infusion of cash in exchange for equity (stock) in the business.
Here are some venture capital firms that specialize in providing funding to Black-owned businesses.
Northwestern Mutual Black Founder Accelerator powered by gener8tor invests in high-growth startup companies that were founded by Black entrepreneurs. This program selects in as many as 10 companies per year for a $100,000 investment plus a 12-week accelerator program.
Fearless Fund is a Black-owned and operated venture capital firm that invests in businesses founded by women of color. They provide pre-seed, seed, and series A funding for aggressive growth companies.
More resources
If you don’t receive a grant, or if the grant you were awarded is less than you need, here are some other financing options you can consider.
Hello Alice administers many grant programs (including some of those listed above) and also provides a Small Business Financing Marketplace to help you find a loan.
The Small Business Administration (SBA) does not lend money, but it will guarantee your loan, taking most of the risk off the lender. This makes it easier for many businesses to qualify for a business loan. Use their Lender Match tool on the website to find a lender that may offer you a loan.
America’s SBDC (Small Business Development Centers) offers no-cost business consulting and low-cost training to current and prospective business owners, including advice on access to capital. There are nearly 1,000 local SBDC chapters, and they are often located at local colleges and universities.
Having business insurance is a good way to show potential donors and lenders that you understand the risks involved in running a business, and you’re taking steps to protect yourself against them. Find out what kind of insurance you need and get a quote today.
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