Skip to content
  • Home
  • About
  • Services
    • Web Design
    • Graphic Design
    • Web Care Plans
  • Work
  • Latest Insights
  • Contact Us
  • Client Support Portal
Menu
  • Home
  • About
  • Services
    • Web Design
    • Graphic Design
    • Web Care Plans
  • Work
  • Latest Insights
  • Contact Us
  • Client Support Portal

Black Entrepreneurs & the Conundrum of Loan Readiness

  • By Chamaine Woffard

African-American women are setting up businesses faster than any other racial group. The number of businesses owned by African-American women has risen by 164% since 2007. Unfortunately, our chances of qualifying for funding are slim compared with other ethnicities.

The Plight of African-American Women Entrepreneurs 

African-American women are at a disadvantage in accessing credit, according to the 2016 Small Business Credit Survey. Only 2% of the capital goes to women-only founders, and only a fraction of this reaches African-American women entrepreneurs. We are overlooked for these opportunities despite high credit scores. 

woman-using-computer-in-workshop

Viable Sources of Funding 

Fortunately, African-American entrepreneurs are getting acknowledged. Several VC firms, government agencies, and private organizations are setting up programs focused on lending to African-American entrepreneurs. 

Viable sources of funding for African-American women entrepreneurs include: 

  • Backstage Capital (popular in the tech industry)
  • Community Development Financial Institutions Fund 
  • Founders First Capital Partners 
  • Harlem Capital Partners 
  • Humble Ventures (provides consulting for tech startups)
  • Kapor Capital (based in Oakland)
  • Minority Business Development Agency 
  • Small Business Administration 

Tips for Loan Readiness 

We can increase our chances for funding by being loan-ready. Three basic requirements for loan readiness include: 

  • Idea Readiness–Having a comprehensive written business plan and some experience in the targeted industry. 
  • Financial Readiness–Having enough business and personal income to cover your monthly personal expenses. 
  • Feasibility–Proving that your business has the potential to be profitable and sustainable. 

It is also important to have all the required documents ready before approaching lenders. Necessary documents include: 

  • A budget for your business
  • Monthly cash flow projections 
  • Personal and business tax returns 
  • Personal and business bank statements 
  • Profit and loss statements 
  • Proof of business insurance 

Final Thoughts 

African-American women are driving entrepreneurship in the U.S., and we are more credit-ready. The Oakland African American Chamber of Commerce regularly hosts webinars on loan readiness for its members. Be sure to join their mailing list to learn more.

PrevPreviousImportance of Website Security
NextGiving Tuesday: A Simple Guide on Planning Your CampaignNext
Wellington is a creative studio + web agency partnering with non-profits, hospitality + retail brands and entrepreneurs.

Capabilities

Brand Strategy & Communication

Brand Identity + Logo Design

Graphic Design

Web Design UI/UX

Custom Wordpress Development

Channels

Community Nonprofits

Education Nonprofits

Policy Nonprofits

Entrepreneurs

Real Estate Professionals

Medical Professionals

Subscribe to our Newsletter

Facebook Instagram Twitter
Client Support Portal

Privacy Policy | Terms of Service | Copyright 2023 Wellington Studio

ca_oakland_web-design_2023

Additional Details