Funding For Black Owned Businesses: Everything You Need to Know

Camino Financial30 Jan 2024
Funding For Black Owned Businesses: Everything You Need to Know
Funding for black-owned businesses was often few and far between in previous decades. But now, there's a renewed dedication to the mission to enrich them. This article offers several options for obtaining funds to grow your business. We also give you the tools for deciding what type of funding would be best for you and your business.
Table of Contents
1. Funding resources for black-owned businesses
1.1. Grants
1.2. Private equity firms
1.3. Lenders
1.4. Alternative funds
2. How to find funds for black-owned businesses
3. How to get funding
4. Frequently asked questions

Funding Resources for Black-Owned Businesses

Grants For Black-Owned Businesses

Capital One Business Grant Program

In 2021, Capital One pledged to disperse a total value of $200 million over several years by offering $10,000 in grants annually to eligible small businesses that experienced economic hardship due to the COVID-19 pandemic.

The one-stop shop to access all federal and state, we recommend setting up alerts for your unique business on, so you never miss a grant offering funding for black entrepreneurs. You can also find information on about small business administration options.

Minority Business Development Agency (MBDA)

The MBDA is an agency within the U.S. Chamber of Commerce that aims to grow black businesses. They do not directly fund organizations but provide grant access via local Minority Business Centers.

Business for All

Hello Alice created this grant in partnership with Verizon. The program offers 18 grants valued at $285,000 – 13 of which must go to business owners identifying as women, people of color, LGBTQIA+, disabled, or former military. This makes it an excellent grant for black-owned businesses to apply for.

iFund Women

Though primarily a crowdfunding platform for women-owned businesses, iFund offers black women access to grants and additional resources via their exclusive program for women of color.

The USDA Rural Business Development Grant Program

This government grant exists for small business owners in rural areas seeking to enrich their community in various ways.

Private Equity Firms

Backstage Capital

Led by Arlan Hamilton, Backstage Capital seeks to invest capital in underserved founders, including founders.

Reign Ventures

A Black woman founded this venture capital firm that funds-stage opportunities. They have pledged to build a portfolio with at least 50% women or minority business owners.

Kapor Capital

An impact investment fund, Kapor Capital seeks to invest in tech businesses that strive to level the playing field of opportunity.

Hustle Fund

This group of CEOs prides themselves on funding "hilariously early startups" – no experience? No problem, at least with this group.

Harlem Capital Partners

This NYC-based company pledges to fund trailblazers whose business solves significant issues and has promised to invest in 1,000 companies over the next two decades.

Collab Capital

This venture capital firm focuses on funding black founders with eco-friendly and innovative businesses, with the slogan "transforming genius into generational wealth."

Small Business Lenders

Small Business Administration (SBA)

The government backs SBA loans that offer low-interest rates and flexible repayment terms. They are available to small businesses of all types. The SBA has a program specifically for minority-owned businesses called the 8(a) Business Development Program.

Community Development Financial Institutions (CDFIs)

CDFIs are nonprofit organizations that provide loans and other financial services to underserved communities, including black business owners. Some examples of CDFIs include Camino Financial, Accion, Community Reinvestment Fund, and Hope Credit Union.
Camino Financial
At Camino Financial, we are a Community Development Financial Institution. We aim to assist small business owners in taking their projects to the next level by providing loans. Our ultimate goal is to provide access to business capital to underserved communities.
  • To be eligible for our business loans, owners must generate a minimum of $2,500 monthly, among other requirements.
  • Loan amounts range from $10,000 to $50,000, with competitive interest rates of 32% to 45%.
  • The loan term lengths are 24 months, and we require a minimum credit score of 670.
Apply for a Camino Financial loan

Minority Business Development Agency (MBDA)

The MBDA is a federal agency that assists minority-owned businesses, including Black-owned companies. They offer loans, grants, and other financial assistance.

Traditional Banks And Credit Unions

Many traditional banks and credit unions offer to fund small black-owned businesses. Some banks have programs specifically for minority-owned businesses, such as Wells Fargo's Diverse Community Capital program.

Online Lenders

Several online lenders offer small business business loans that black entrepreneurs can apply for, including:
  • Camino Financial
  • Kabbage
  • OnDeck
  • Fundbox
These lenders often have less stringent requirements than traditional banks and credit unions. Researching and comparing different loan options is essential to find the best fit for your business's needs. Additionally, organizations like the National Black Business Council and the National Minority Supplier Development Council can provide resources and guidance on black-owned business funding. Apply For An Online Business Loan!

Alternative Funds For Black Business Funding


Kiva connects owners to crowdsourced lending. This unorthodox nonprofit can be an excellent fit for borrowers who don't meet the criteria for bank loans or could benefit from a relatively quick microloan.

Start Engine

This crowdfunding site helps entrepreneurs find a perfect match for their businesses. With equity crowdfunding, you can keep your business, and your number-one fans become your investors.

Union Bank Diversity Lending

Designed to support women, minorities, and veteran business owners, Union Bank's Diversity Lending Program aims to fund underserved populations.

Accion International

Committed to serving underrepresented communities, Accion International provides micro-lending and a myriad of business resources and educational tools to low-income business owners, people of color, and women.

How To Find Funds For Black-Owned Businesses

Some of the best online resources for funding via grants include:
  • MBDA Grants
  • Grants Dot Gov
  • Sam Dot Gov (to register for specific region-based grant alerts on Grants)
  • Hello Alice
  • Coalition to Back Black Businesses
  • National Black MBA Association
  • Capital One Business Grant Program
When searching for venture capital funding, it is good to research firms in your area. Five existing black-owned venture capital funds are:
  • Black Angel Tech Fund
  • EchoVC Partners
  • New Voices Fund
  • Base Ventures
  • Digitalundivided
You can apply for loans from the federal government and your local bank. However, we recommend taking loans with Camino Financial, Union Bank, or Accion International, as they offer minority business loans.

How To Get Funding For Black-Owned Businesses

Business Loans

When applying for loans for black businesses, lenders will usually ask for the following requirements:
  • Good personal and business credit scores
  • Proof of annual or monthly revenue
  • At least two years in business
  • Appropriate business industry and size of staff for that industry
  • Business plan and loan proposal
  • Collateral or a personal guarantee
  • Business and financial documentation
To apply, contact local or national banks, credit unions, or the Small Business Administration's (SBA) lending programs. You can also explore online lenders, which have become increasingly popular for businesses seeking funding. Check your preferred lender's specific requirements to ensure you can meet them all before applying. Apply For A Business Loan!


Because all grants have different ways of applying, always check the rules and regulations before submitting your application. You can expect to meet these requirements:
  • Be a U.S. citizen, age 18 or older
  • Be Black or African American
  • Employ 1 to 25 full-time or part-time employees (the exact number varies by the grant)
  • Be based in an economically disadvantaged area
  • Highlight how your business adds value to your community

Venture Capital

When applying for venture capital, it is essential to remember that these financiers are looking to invest in startups. This means that you must have a plan to scale your business rapidly and eventually sell it to a larger company and merge with a larger company. If this sounds like you, you can need these requirements:
  • Have a deep understanding of the ins and outs of venture capital funds
  • Be clear about what your business plan is as well as its final outcome
  • Prepare a slideshow pitch presentation, telling the story of your business with projected growth benchmarks and exit
Because venture capitalists are the real-life Shark Tank, it is a worthwhile investment to work with trusted advisors and even consider patenting your idea if it is in any way new or revolutionary. #CaminoTip With so many financing options currently available, it is vital to carefully discern which funding is right for you and your business.

Private Equity

Though private equity offers a life-changing amount of funding, they expect your business to scale rapidly enough for them to see a return in the form of you ultimately selling your business. Private equity firms usually look for businesses that have already achieved traction and can prove it with revenue, customers, media coverage, and a track record of growth. To apply, you'll need to have a great team and be able to prove your company is worth investing in.

Apply For An Amazing Business Funding Option

We are here to assist you if you're a small business owner seeking business capital. Our small business minority loan comes with competitive rates and tailored service, allowing you to expand your business. Don't hesitate to apply today. We're ready to help you achieve your objectives! Apply for a business loan today


How do black-owned businesses get funding?

Via grants, private equity, equity crowdfunding, loans, personal savings, or crowdfunding campaigns.

How can I help black-owned small businesses?

Pulling out your wallet. Buying their products or services plays a small but important part in guaranteeing their overall success. Bonus points for spreading the word about their business on social media or among friends.

What is the Black Business Impact Fund?

The Black Business Impact Fund (BBIF) is a venture capital fund to support Black entrepreneurs starting, growing, and scaling businesses. The primary objectives of the BBIF are to increase access to capital for underfunded black-owned small businesses and provide resources to help them succeed.

What is the Capital One Business Grant for black-owned businesses?

An initiative since February 2022, the Capital One Business Grants for Black-owned businesses offers $10,000 annually, specifically for companies negatively impacted by the COVID-19 pandemic. In addition to a pledge of 200 million over multiple years in grant money, Capital One is offering access to free resources from current successful business owners via its Business Hub.

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