American Express has announced the launch of a $10m grant to support Black-owned business recovery over the next four years in collaboration with the US Chamber of Commerce Foundation. The Coalition to Back Black Businesses is the “first-of-its-kind” collaboration between four major Black chambers. They include the National Black Chamber of Commerce, the National Business League, the US Black Chambers and Walker’s Legacy.
The disproportionate impact of COVID-19 on Black communities has become apparent in recent months. Black-owned small firms “were twice as likely to close during the early months of the pandemic compared to small businesses nationally”, confirmed American Express. Building on its long-standing commitment to back small businesses and underrepresented communities, it created the $10 million grant to help Black businesses recover from the pandemic.
“Small businesses play a crucial role in our communities and when the pandemic hit, Black-owned small businesses were hit the hardest,” noted Anré Williams, Group President, Global Merchant & Network Services, American Express. “The Coalition is aimed to provide eligible Black-owned small businesses with much-needed capital to help recover from the devastating impacts of the pandemic and help them rebuild their businesses.”
RECOVERY ASSISTANCE
From now through September 21, eligible Black small business owners can apply for a $5,000 grant to assist them in their recovery. American Express will fund the $10 million grant over the next four years. A portion of this grant will also fund leadership development and business mentoring. In addition, the Coalition to Back Black Businesses will provide further funding, training and resources to empower Black business founders that are struggling with economic growth.
According to research from the US Chamber of Commerce and MetLife, minority-owned small businesses are more likely to fail to secure a loan to help survive the economic turmoil (13% versus 8% of non-minority businesses). And, most recently, 66% of minority-owned small businesses reported concerns about having to permanently close their business.
COALITION PARTNERS
Commenting on the programme, said Kenneth L Harris, National President/CEO, National Business League, stated: “The National Business League is excited to partner with American Express, the US Chamber of Commerce Foundation and Coalition partners to provide a $10 million grant programme for Black businesses throughout the country. The NBL continues its economic recovery efforts in collaboration with the public and private sector.”
Harry C Alford, President and CEO of the National Black Chamber of Commerce believes this programme is “going to create opportunity” and “level the playing field for many of our members”. “Access to capital has always been the missing link in regard to small business growth. We are now about to address that,” he added.
Black entrepreneurs have undoubtedly “been hit the hardest by the pandemic, coupled with historic levels of Black business closures and unemployment”, pointed out Ron Busby, President of Black Chambers. “We applaud American Express and the Coalition to back Black businesses”.
Adding to his comments, Natalie Madeira Cofield, Founder & CEO, Walker’s Legacy, stated: “Walker’s Legacy is honoured to work with American Express in their commitment to diversity through their generous effort to support and fund Black-owned businesses and the organisations that aid them during this time of uncertainty.”
ELIGIBLE BUSINESSES
Black business owners in need of funding can now apply online for a $5,000 grant. Eligibility requirements include:
- Must be a Black small business owner with between 3-20 employees.
- Your business must be in an economically vulnerable community. This is defined as being located outside of the 20% most prosperous zip codes in the US as ranked by the Distressed Communities Index.
- Must have been negatively impacted financially by the COVID-19 pandemic.
2020 APPLICATION PROCESS
The application process is as follows:
- Eligible applicants must submit applications for consideration by September 21, 2020.
- The Coalition will randomly select 280 applicants who meet the requirements. Applicants will be notified by email by September 22.
- The 280 applicants, who meet eligibility requirements, will receive a $5,000 grant.
- Special consideration will be given to women-owned businesses, which will make up at least 25% of the awarded grants.
Businesses selected for the grant will be notified via email and grants will be awarded on a rolling basis from October 6. They will also be invited to participate in a mentorship programme to help further grow their business.
To find out if you are eligible CLICK HERE.
Sign up for our newsletter
