Fewer Black entrepreneurs are approved for financing as compared to white entrepreneurs. And when financing is approved, it is often for a lower amount with higher interest rates. That’s why Juvia’s Place is giving away a $50,000 grant to 6 Black-owned businesses in the U.S. Being a Black-owned business, we understand the struggles that our community of entrepreneurs will face, and want to alleviate some of those obstacles by passing our blessings around. We understand that it is important for Blacks to support Black-owned businesses.
As a Black-owned business, I understand first hand the financial, and other, obstacles Black entrepreneurs face. More African-American small business owners (44%) use cash to fund their business than the average small business owner (37%), according to SCORE. The most popular funding sources for African-American business owners are:
- Friends and family
- Lines of credit
- Rollovers for Business Start-ups (ROBS), financing that allows small businesses owners to tap into eligible retirement accounts to fund their businesses without tax penalties. Guidant says this grew by 21% in popularity among African-American small businesses year over year.
- Unsecured loans
- Peer-to peer
- Equipment leasing
- SBA Loans
Most of these sources require African-American entrepreneurs to amass debt, and often high rates. These debt traps can kill a business before it even gets started. That’s why we are giving away $50,000, no re-payment required.
Black female entrepreneurs face even greater challenges. Black/African-American women in the U.S. are starting businesses at a faster rate (12% growth rate per year) and other groups (8% growth rate per year). But our average yearly revenue is only $24,000 versus $142,900 for non-Black female entrepreneurs. This gap in gross revenue is startling, and speaks to a broad array of systemic issues that we are trying to help alleviate with our new Black Business Grant.
I started Juvia’s Place with just $2,000 and a dream. I, like so many others, didn’t have access to lending, or a trust-fund! My business was built with minimal financial resources, but I had a supportive community to lean on. That community support was essential to my business growth. I found mentors and customers that believed in my product, and helped to make my dream a reality. I appreciate the support, and want to make sure I can provide an opportunity to other Black entrepreneurs who are looking to grow their businesses.
Are you ready for $50,000 to grow your business? We have only a few rules:
- Your business be majority owned by a Black or African-American person
- You must be a U.S. citizen or legal resident of the United States, and your business must be headquartered in the United States
- Your 2019 business gross income must be at least $1,000, and not exceed $250,000
We look forward to reviewing your application. Deadline for submissions is August 31, 2020 11:59 EST. Apply now.