20 Funding Sources for Black-Owned Businesses in 2023

This post is a cross post from DownloadAstro, Str8jacket doesn’t own the right of the content.

Many African American small business owners face challenges with funding due to post-pandemic hardship, inflation, and fierce competition. Yet black-owned businesses have been integral to the U.S. economy in the past and present. 

To help you out, we’ve rounded up a list of 20 places where you can seek grants and funding for your business in 2023.

Backstage Capital

What’s cool about Backstage Capital is that they intentionally back underrepresented founders, particularly those of color, female genders, and LGBTQ orientations. Founded in 2015, this private firm set out to support early-stage startups that traditional venture capitalists often overlook. It has since funded 200 startups, most of which are based in the United States.

One of the key initiatives of Backstage Capital is its interest in helping its portfolio companies grow. Rather than give out one-off grants, the firm sources for equity rounds, convertible notes, and Simple Agreements for Future Equity (SAFEs) from its accredited investors. 

Besides investment, Backstage hosts events and provides opportunities to network with mentors, investors, and industry experts. 

Community Development Financial Institutions (CDFI) Fund

The CDFI Fund is a public funding source designed to empower CDFIs servicing America’s underserved and distressed communities economically. This Fund provides various programs to support CDFIs, including the CDFI Bond Guarantee Program, which has guaranteed over $2 billion worth of bonds so far. 

CDFIs are financial institutions such as banks, credit unions, loan funds, microloan funds, or venture capital providers that provide residents and businesses loans funded by the U.S. Treasury Department to create economic opportunities in low-income communities.

To become certified as a CDFI, a financial institution must apply to the CDFI Fund and meet certain criteria. These include having a primary mission of promoting community development and being a financing entity.

The CDFI Fund isn’t exclusively for black-owned CDFIs. But it does encourage CDFIs in low-income communities by helping them with grants, tax credits, and loan services. This empowers the CDFIs to give people in those communities loans to open businesses, buy homes and so on, improving their living standards. 

Grants.gov

Grants.gov is a federal website that provides a centralized location for grant seekers to find and apply for funding opportunities. While Grants.gov offers a wide range of funding opportunities for businesses of all types, they do not specifically target Black-owned businesses. 

Some of these programs may focus on promoting economic development in historically underserved communities or supporting small businesses in certain industries. 

Please remember that Grant.gov doesn’t disburse grants. Rather, grantors can advertise grant opportunities to potentially interested communities on Grant.gov, urging them to submit their applications. 

Reign Ventures

Reign Ventures is a private venture capital fund that invests in startups led by women and minorities. They focus on companies in the tech industry that have high-potential founders. 

Reign doesn’t stipulate specific periods during which interested business owners can pitch their ideas to the board of investors. You’re welcome to send your pitch to them at any time. 

IFundWomen of Colour (IFC)

IFC is the perfect platform for female coloured entrepreneurs to raise capital through crowdfunding, grants and coaching. If you choose IFC, you can access its exclusive Slack community, where you can share your business strategy and learn more about branding and marketing.

IFundWomen also provides opportunities for women to learn from expert workshops and enlist the services of coaches to assist them on their business growth journey. 

To crowdfund your business, start by taking IFC’s crowdfunding course and supporting other campaigns. Then download the grant planner to map out exactly how you intend to get the capital you need from crowdfunding.

For full content, please visit DownloadAstro’s post here

Support Black-Owned Businesses: 181 Places to Start Online

This is a cross post from Sophia Conti

Racial and wealth disparities in the United States have been thrown into sharp relief by the COVID-19 pandemic and racial unrest throughout 2020. We see more clearly than ever just how often Black business owners and creatives have been thought of as less than their Caucasian counterparts – and Black businesses are paying the price.

Black businesses are impacted more deeply than Caucasian businesses by COVID-related closures, due to the long history of racial inequality that’s now exacerbated by the ongoing state of emergency.

It feels like an overwhelming problem – and it is – but there’s one simple thing you can do right now to help: Shop at Black-owned businesses whenever you can.

Supporting Black-owned businesses helps provide much-needed stability to business owners that have been hard hit by the pandemic. And you’re laying a foundation to continue to support Black businesses long after the crisis is over.

Once you start paying attention to who owns the businesses you shop at and where your money is going, you’ll be surprised at how your mindset starts to shift. It’s an easy, practical step to start changing the way you think while providing tangible support to Black business owners who need your help right now.

Where to start? We’ve got you covered. We’ve compiled a list of 181 Black-owned businesses across the United States in many different categories. Check out the list below.

Sophia Conti

Sophia is a freelance writer, editor, and content strategist. She specializes in digital marketing and B2B content for small businesses and entrepreneurs. When not writing or editing, she can be found searching used bookstores and watching the penguins at the San Diego Zoo.