FundBLACKFounders

Our economic mobility work ensures that we’re meeting needs and building futures by providing pathways out of poverty to prosperity.

This is done in three ways:

  • Upskilling individuals for
    increased income

  • Providing robust education and financial stewardship principles and practices

  • Expanding Black-owned small business infrastructure within the community

Why focus on expanding the infrastructure of Black-owned businesses?

  • There’s an expectation by lenders that entrepreneurs should be able to raise initial capital through friends and family. However, we know that white Americans have 11 times more wealth than Black Americans.
  • Only 1 % of start-up capital accrues to Black entrepreneurs.
  • The average white business starts with $107,000 and the average Black business only has $35,000.
  • Black individuals represent 14.2% of the US population but only 2.2% of employer businesses.
  • If Black-owned businesses were equivalent to their representative size of the U.S. population, there would be 806,218 more Black-owned businesses.
  • Black-owned businesses are much more likely to hire Black workers.
  • 90% of all new businesses do not have any outside investors, and often use equity in their homes to start their firms, but property values in Black neighborhoods are significantly undervalued and Black homeownership rates are significantly less than white homeownership rates, effectively removing this option for many would-be Black business owners.\
  • Black-owned businesses have higher loan denial rates and than white-owned businesses even after controlling for credit-worthiness.

In response to the lack of capital and resources, FundBLACKFounders was founded and helps Black entrepreneurs raise capital by:

  • Offering support and training to grow their businesses.

  • Providing access to a
    crowdfunding platform.

  • Matching grants to what
    is raised.

Application Details

  • Black entrepreneurs in Jefferson County (hope to expand to the entire Metro United Way service region in 2024) can apply to be part of FundBLACKFounders HERE beginning Monday, February 6.
  • Final applicants will be selected for the cohort on Wednesday, March 15 and training begins Wednesday, April 12. Cohort campaigns go live on Tuesday, August 1.

Need More Information?

For questions or more information about Fund BLACK Founders, contact john.nevitt@metrounitedway.org.

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