BIPOC Small Business Capital Access Fund

Capital is critical to small business growth and success, but many BIPOC-owned businesses do not have access to it because their communities have been historically locked out of economic opportunity. Consequently, these businesses do not grow, fail in higher numbers, and if they survive produce lower profits, hire fewer employees, and are less able to fuel wealth creation.

The BIPOC Small Business Capital Access Fund will provide access to growth capital for small Black, Indigenous, or other People of Color (BIPOC)-owned businesses to unlock their potential to grow, scale, create jobs and fuel wealth creation. LISC VA will invest in BIPOC-owned businesses with patient capital, in the form of zero-percent loans and small business coaching. All repayments to the Fund will be recycled so we can continue investing in new BIPOC-owned businesses.

Small business borrowers will receive complimentary coaching services to be provided by the Women’s Business Center of Richmond, hosted at Virginia Union University. Borrowers will meet together as a cohort for six months to receive group business coaching sessions. With this group coaching, businesses will meet and learn from other business owners, specialists, and a dedicated business coach. All businesses will leave the six-month program with a three-year growth plan to guide their business and a group of business owners who can serve as a resource in the future.

The application for the program is now available, and closes on July 15, at 11:59pm EST.

The Fund

1) Zero-Percent Loans: Businesses will receive a loan from $10,000 – $50,000 at 0% interest and without fees to help expand their business. Businesses can use the loan for operational costs, payroll, purchasing equipment and supplies, contractor or receivable advances, working capital, physical improvements, and other expenses related to business growth.

2) Group Business Coaching: In partnership with the Women’s Business Center of Richmond, our borrowers will receive group business coaching. The coaching program will focus on business plan development, financial management, marketing, e-commerce, human resources, and more. Businesses will leave the program with a three-year growth plan informed by feedback from their network of peer business owners, subject-matter experts, and their business coach.

Coaching Program

The coaching program will cover four critical areas of business. The group coaching cohort will meet twice monthly for two (2) hours. Confidential one-on-one business coaching will occur between each session according to the schedule agreed upon between the business owner and the business coach. Participating businesses will receive up to 24 hours of group training and 24 hours of one-on-one coaching over the course of six months.

Loan Terms:

Loan amount: $10,000 – $50,000
Interest: 0% interest
Deferred payments: No payments first 6 months
Loan term: up to 36 months
Amortization: 5 years

Loan Usages:

Business owners will develop a project plan with the business coach to ensure practical and feasible usage of investment funds. Allowable uses include:
Working capital (rent or mortgage payments, payroll, etc.)
Entering new markets or creating new products/services
Installing, upgrading, and modernizing technology for e-commerce
Rehab of existing space, especially to improve safety related to the COVID-19 pandemic
Retooling, replacing, or purchasing equipment or operating supplies
Consulting services to facilitate business transformation (e.g. marketing, web design, operational strategy)
Training for employees related to implementing business changes
Refinancing higher-interest debt
Contractor or receivable advance

Eligibility Requirements:

BIPOC-Owned: Businesses where 51% or more of the business owners identify as Black, Indigenous or other People of Color (including Hispanic/Latino and Asian)
Geography: Businesses located in the City of Richmond, Henrico County, or Chesterfield County
Longevity: Businesses that have been in operation for at least 3 years (February 1, 2019 or before).
Employees: Businesses that have 2 or more employees
Profitability: Businesses that have a yearly gross revenue between $50,000 – $1,000,000 based on tax return (2019 or 2020)

Required Business Documentation:

Interested businesses will need to submit the following documentation throughout the application process:
Business Income Statements (Profit and Loss Statements): 2019, 2020, 2021, and interim 2022
Business Balance Sheet (Assets & Liabilities): 2019, 2020, 2021, and interim 2022
Business Debt Schedule
Active business license with local government (City of Richmond, Henrico County, or Chesterfield County)
Active status with the Virginia State Corporation Commission
Business Tax Returns: 2018, 2019, 2020
If you will use the loan to cover the following uses, then you will also need to provide:
Past rent/mortgage: a statement showing the amount owed
Payroll: 1040C, 941s, or payroll report

Refinancing higher interest debt: current loan documents

Contacts:

George Piazza,
Economic Development
Program Officer
gpiazza@lisc.org

Shara Gibson,
Program Director
sgibson@theinstitutenc.org