ACCESS TO CAPITAL

 

Small businesses are the engine of job growth, drivers of innovation, and the backbone of communities throughout Connecticut. Small business owners find themselves with challenges on a daily basis. For minority business owners, there can be additional hurdles to overcome such as different financial matters, professional development obstacles and access to the right kinds of advisers and mentors.

 

Minority business owners have historically found it difficult to gain access to capital. Funding often plays a big part in determining the success of a small business. A study conducted by the Department of Commerce’s Minority Business Development Agency showed some of the disparities:

  • Minority-owned businesses are less likely to get loans than non-minority owners. This is particularly true for businesses that have less than $500,000 in gross receipts.
  • The value of loans for minority-owned businesses is usually less than non-minority loans. For minority businesses with more than $500,000 in gross revenue, the average loan amount is $149,000. But non-minority business loans average $310,000, and the MBDA report says interest rates are often higher for minority business loans.
  • Due to “a real or perceived likelihood of rejection,” some minority-owned businesses avoid seeking loans. This could prevent these businesses from reaching their potential.

To ensure that more minority-owned small businesses can have resources available to help them grow and thrive, the State of CT and the Department of Economic and Community Development (DECD) have established the Minority Business Revolving Loan Fund (MBRLF), which is a strategic partnership of Community Development Organizations.

DECD aims to expand assistance to minority small businesses across CT, by targeting underserved and un-served small businesses. The MBRLF Program will support this CT business development growth by driving increased access to Capital, in alignment with Minority Business Initiative strategic goals.

The Black Business Alliance (BBA) is spearheading the outreach to minority businesses across the state.  BBA has clients in a wide variety of industries including service, transportation, restaurants, manufacturing, education, consultants, barbershop and beauty salons, and etc. Funding requirements vary from working capital, equipment, specialized automobiles, and etc.

The BBA can be reached at https://bbusinessalliance.org or call me 203-434-8198