On Aug 17, 2020
Secaucus-based cosmetics company Juvia’s Place is giving away six $50,000 grants in the hopes of eradicating the challenges Black entrepreneurs face in accessing startup capital.
According to founder Chichi Eburu, “As a Black-owned business, I understand first-hand the financial obstacles Black entrepreneurs face. I started Juvia’s Place with just $2,000 and a dream. I, like so many others, didn’t have access to lending, or a trust fund. My business was built with minimal financial resources, but I had a supportive community to lean on. That community support was essential to my business growth. I found mentors and customers that believed in my product, and helped to make my dream a reality. I appreciate the support, and want to make sure I can provide an opportunity to other Black entrepreneurs who are looking to grow their businesses.”
According to SCORE, 44% of Black small business owners use cash to fund their business as compared to the average small business owner (37%). The most popular funding sources for African-American business owners are:
-Friends and family
-Lines of credit
-Rollovers for Business Start-ups (ROBS), financing that allows small businesses owners to tap into eligible retirement accounts to fund their businesses without tax penalties. Guidant says this grew by 21% in popularity among African-American small businesses year over year.
-Unsecured loans
-Peer-to peer
-Equipment leasing
-SBA Loans
Most of these sources require Black entrepreneurs to amass debt at high interest rates. These debt traps can kill a business before it even gets started. Black female entrepreneurs face even greater challenges. Black women in the U.S. are starting businesses at a faster rate (12% growth rate per year) than other groups (8% growth rate per year). That being said, the average yearly revenue for Black female entrepreneurs is only $24,000 versus $142,900 for non-Black female entrepreneurs. This gap in gross revenue is startling, and speaks to a broad array of systemic issues faced by these businesses.
To apply for the Juvia’s Place Black-Owned Business Grant You must answer YES to the following questions:
-Is your business Black-owned?
-Are you a US resident or US citizen?
-Is your business headquartered in the United States?
-Is your 2019 business gross income between $1,000 and $250,000?
Click: Apply now
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