80 www.blackeoejournal.com Black EOE Journal
egardless of what your business special- izes in, it can be difficult to amass the proper funds that will help your company thrive. Luckily, for Black and minority-owned businesses, there are a plethora of great fund- ing opportunities you can be utilizing to help you achieve your goals. Here are some of the best funding and grants resources for Black- owned businesses:
NMSDC Business Consortium Fund
If your business is certified by the National Minority Supplier Development Council, best known as NMSDC, their Business Consortium Fund has some great resources and fund- ing opportunities that can help your busi- ness. Created by NMSDC and certified by the U.S. Department of Treasury, the Business Consortium Fund works with certified small business suppliers in NMSDCs network. Currently, the business consortium offers three types of funding: Microloans, Senior Loan Facilities and Mezzanine Debt and Equity. Each loan offers the following: Microloans: Microloans best service businesses looking for smaller, low- interest loans ranging from $10,000 to $100,000. These loans are geared towards usage for working capital, IT, equipment and inventory. Senior Loan Facilities: For businesses
The Best Funding for Black-Owned Businesses
seeking capital, Senior Loan Facilities offer financing in the form of a term loan or a line of credit. Funds range from $250,000 to $750,000 and cannot exceed a term longer than five years. Mezzanine Debt and Equity: Another opportunity for businesses seeking capital, this financing comes in the form of mezzanine or subordinated debt with equity. Funds range from $750,000 to about $2.5 million and cannot exceed a term longer than seven years. All businesses that wish to participate in these funds must be NMSDC certified. For more information on the application process, visit bcfcapital.com.
8(a) Business Development Program
Established by the U.S. Small Business Administration, the 8(a) Business Development program is a nine-year program designed to help firms owned and controlled by socially and economically disadvantaged individuals, who have already been in business for at least two years and are interested in expanding their footprint in the federal marketplace. The 8(a) program offers unique and valuable business assistance and the opportunity to qualify for the programs sole-source and competitive set- aside contracts. Though not necessarily guar- anteed, 8(a) certified businesses are eligible to take part of the governments sole-source contracts which range up to $7.5 million for acquisitions assigned manufacturing North American Industry Classification System (NAICS) codes and $4.5 million for all other acquisitions. To learn more about becoming 8(a) certi- ied and loan opportunities, visit sba.gov/ federal-contracting.
The Minority Business Development Agency
Run by the Department of Commerce, the Minority Business Development Agency (MBDA), is one of the best online resources for diverse, small business owners. Minority- owned firms seeking to penetrate new markets - domestic and global - and grow in size and scale can access business experts at an MBDA Business Center. Whether its securing capital, competing for a contract, identifying a strategic partner or becoming export-ready, your success is their priority. The centers are located in areas with the largest concentration of minority populations and the largest number of minority businesses. The MBDA website provides a directory of all of their MBDA centers along with postings on grant opportunities being held by various companies and organizations. To find your local business center and begin accessing grant opportunities you could quality for, visit mbda.gov/ mbda-programs#6/37.379/-79.156.
Grants.gov is a government-owned web- site that has every resource a business owner could need on finding and applying for federal funding opportunities. The website not only contains over 1,000 different grant programs that can be applied for across dollar amounts, but provides resources for applying to multiple grants at once, grant writing tips and the lat- est news on federal funding for businesses. To apply for these grants, your business must have a grants.gov account, obtain a DUNS number and be registered to do business with the U.S. government through its System Award Management website. For more information on how to utilize grants.gov today, visit grants. gov.
Sources: Nerdwallet, NMSDC Business Consortium Fund, Small Business Administration, grants.govPrevious Page