Black businesses are three times more likely to be denied bank loans than white businesses, according to the Minority Business Development Agency.
For this reason, one in four black businesses give up on applying for credit, with 56% of those businesses saying they didn’t want to go into debt and 60% saying they felt they would be turned down if they did. request, found a report by the Federal Reserve in 2020.
Grants are a great alternative to help African American entrepreneurs finance their businesses. Here are some grants available for black businesses.
Los Angeles County Small Business Rent Relief
If you have a business in Los Angeles County, you may be eligible for rent relief. LA County is giving up to $ 40,000 in rent relief to businesses that have fallen behind in rent payments due to the COVID-19 pandemic. Business owners must have unincorporated LA County businesses, have nine or fewer employees, have less than $ 1 million in income, and have lost 25 percent of income in the past year. Entrepreneurs should hurry and apply by November 24 here.
SBA Targeted EIDL advance
Here is a Small Business Administration fund reserved for small businesses with less than 500 employees. The targeted economic disaster loan advance is similar to a grant and helps small businesses affected by the pandemic.
The US Small Business Administration provides $ 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 financing advance. Business owners do not have to accept or be approved for the loan before obtaining the targeted EIDL advance. The deadline for applications is December 31st. Full eligibility requirements and application can be viewed on the US SBA website.
To learn more about funding possibilities, click here.
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