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Securing capital is one of the biggest barriers for entrepreneurs when starting a new business. And once the business does begin operations, unexpected disasters such as pandemics and shutdowns can affect the bottom line of even the most established organizations.
Black-owned businesses and organizations were hit the hardest during the pandemic. According to one report, they suffered a 41% drop in operations.
Whether you have a startup you want to scale, are looking for fresh ideas for your established business, or need help recovering from unexpected slowdowns, here are four of the best resources to fund your Black- or minority-owned industrial business.
1. Small Business Administration (SBA)
The Small Business Administration (SBA) offers a range of resources and programs that Black-owned small businesses can leverage to start, grow, or recover.
There are a few ways SBA can help Black entrepreneurs scale their businesses:
- Local Support: For ongoing mentorship or one-time business questions, use local SBA partners like Community Navigators or Small Business Development Centers.
- Access To Capital: You can utilize SBA-backed loans or grant programs such as “Small Business and Innovation Research” to get funds.
- Contracting Opportunities: The 8(a) Business Development Program and the HUBZone program are specifically designed to cater to firms owned by economically and socially disadvantaged groups.
This database has all the information business owners need regarding government grant programs for specific sectors and their eligibility. If you want federal financial assistance, this portal is especially useful.
It provides eligibility guidelines and submission procedures for over 1,000 small-business grants.
3. Minority Business Development Agency
The Minority Business Development Agency (MBDA) is the only federal agency charged with boosting the competitiveness and growth of minority-owned businesses.
Although MBDA doesn’t provide funds directly to businesses, they offer relevant and valuable resources for loans and grants. They also organize annual meetings with angel investors to support minority and small business owners.
4. Reign Ventures
Founded by a Black woman, Reign Ventures is one of the best early-stage venture investment firms focusing on Seed and Series A investment opportunities for minority-led startups.
The company invests in tech-enabled and technology startups led by minority or women founders. It has supported successful businesses like Letterhead, which helps publishers of all kinds succeed at publishing great newsletters, and Tribute, a digital health equity company.
Get Started with Credit Key
If you’re ready to get started on your next big idea, Xometry’s Credit Key is a flexible payment solution that helps entrepreneurs instantly tap into large lines of credit. This means you can buy the parts you need now and pay later.
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