38 Must-Know Funding Resources for Black-Owned Businesses
Over the past few years, we’ve seen an increasing number of African-American entrepreneurs come into the market. With this increase in the number of entrepreneurs, there has also been an increase in funding opportunities that are catered toward Black-owned businesses (BOC).
To help BOC get access to the best funding opportunities and other helpful resources, we’ve compiled a list of our top 38 must-know funding resources that you should be taking advantage of today!
If you’re a black entrepreneur, you may face unique challenges when it comes to securing funding for your business. But don’t despair! There are plenty of organizations out there that can help. Here are 38 must-know funding resources for black-owned businesses.
- Black Founders
- National Association of Minority Business Entrepreneurs
- US Small Business Administration
- TheGrantsmanship Center
- National Minority Supplier Development Council
- Goldman Sachs 10,000 Small Businesses Program
- American Express OPEN Forum
The first step is to identify what type of business you have. There are four primary types of accelerators: startup, corporate, social, and government. Each has its own benefits and drawbacks. For example, startup accelerators are great for young companies with high growth potential, but they often lack the resources and mentorship of larger programs.
The first step is to look into grants. There are many organizations that offer grant money specifically for black-owned businesses. The key is to do your research and make sure you are eligible for the grant before applying. Some of these organizations include:
- National Association of Black Journalists
Credit cards can be a great way to finance your business, especially if you have good credit. Just be sure to shop around for the best rates and terms before you apply.
Borrowing from Friends and Family
Borrowing money from friends and family is a popular option for many entrepreneurs, especially when starting a business. It can be a great way to get started without going into debt, and you may even be able to negotiate better terms than you would with a traditional lender. Just be sure to draw up a contract and put everything in writing to avoid any misunderstandings down the road.
There are a number of crowdfunding sites out there that can help you get started with your business. Kickstarter, Indiegogo, and GoFundMe are all popular options. Each site has its own rules and regulations, so be sure to do your research before choosing one.
- SBA Loans (two sentences): The Small Business Administration offers a variety of loan programs that can help you get your business off the ground. Their 7(a) loan program is the most popular option, but be sure to explore all of your options to see what best fits your needs.
- Personal Savings (two sentences): Of course, you can always fund your business yourself. If you have the savings to do so, this can be a great option as it gives you complete control over your business.
Traditional loans are a great option for black-owned businesses that have been in operation for at least two years and have a strong credit history. To qualify, you’ll need to provide collateral, such as business equipment or real estate, and meet certain requirements, such as having a minimum annual revenue.
The government offers many tax incentives and opportunities for black-owned businesses. For example, the Minority Business Development Agency (MBDA) is a federal agency that promotes the growth of minority-owned businesses. In addition, the Small Business Administration (SBA) has some business development program that helps black-owned businesses get started.
- Private Grants (five sentences): There are also many private grants available for black-owned businesses. The NAACP offers a variety of scholarships and grants, as well as loans, to help black entrepreneurs get their businesses off the ground. The National Urban League also provides funding through its entrepreneurship centre.
Tax Credits & Deductions
The IRS offers a few tax breaks that can help black-owned businesses. The first is the General Business Credit, which allows businesses to claim a tax credit for a percentage of their expenses. The second is the Minority Business Enterprise Deduction, which allows businesses to deduct up to 20% of their income from qualified minority business enterprises.
Finally, the Work Opportunity Tax Credit provides a tax credit of up to $2,400 for hiring certain types of employees, including those who are members of a black-owned business.