Together, we can help close the racial wealth gap and improve diverse representation of business owners in Newark
Small businesses are essential to community development by creating jobs with living wages; and yet many small businesses struggle to access the capital and support they need to grow. Entrepreneurs of Color have been systemically excluded from accessing external financing, which has further exacerbated the racial wealth and opportunity gap. This lack of access to external capital has also been shown to lead to lower credit scores, less collateral/lower wealth, lower profit margins, and less cash flow buffer. If people of color in the U.S. owned businesses at the same rates as white Americans, the country would have one million more businesses, nine million more jobs, and $300 billion in additional income.
With a $1.7 million commitment, JPMorgan Chase, Prudential Financial, and The Rockefeller Foundation are investing in Newark’s minority small business community by launching the Entrepreneurs of Color Fund – Newark. Greater Newark Enterprises Corporation (GNEC) and LISC Newark are the Community Development Financial Institutions (CDFIs) selected to facilitate the lending and technical assistance services that are the critical parts of this program.
GNEC and LISC Newark will provide custom lending products including loan modifications for existing clients, new loans, as well as technical assistance (TA) to help stabilize and strengthen clients long-term. As the local lead agency for Entrepreneurs of Color – Newark, GNEC will continually assess client needs to match them with appropriate capital resources and services.
GNEC and LISC Newark will provide custom lending products including loan modifications for existing clients, new loans, as well as technical assistance (TA) to help stabilize and strengthen clients long-term. As the local lead agency for Entrepreneurs of Color – Newark, GNEC will continually assess client needs to match them with appropriate capital resources and services.
The Entrepreneurs of Color Fund will offer loans of up to $500,000* at competitive interest rates and terms of up to 84 months. All loans will undergo an underwriting process.
Eligibility Requirements:
*Loans may go larger than $500,000 on a case-by-case basis.
For more information on the Entrepreneurs of Color Fund national initiative, go to https://www.lisc.org/eocf/
Eligibility Requirements:
- Business must be located in the city of Newark.
- Businesses must be 51% owned by an entrepreneur of color.
- Entrepreneur of color is defined as a person of African-American, Hispanic, Asian, Pacific-Islander or Native American heritage.
- Businesses not eligible include gambling and adult entertainment, among others.
*Loans may go larger than $500,000 on a case-by-case basis.
For more information on the Entrepreneurs of Color Fund national initiative, go to https://www.lisc.org/eocf/
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