Following the social and racial unrest that occurred last year, support for Black owned businesses has steadily grown, much of it from large corporations and their foundations. Support from American Express came in the form of establishing the Coalition to Back Black Businesses, a first-of-its-kind collaboration with the U.S. Chamber of Commerce Foundation and four major Black chambers, including the National Black Chamber of Commerce, National Business League, U.S. Black Chambers, Inc., and Walker’s Legacy.
The Coalition to Back Black Businesses just announced that it will award 25 Black-owned small businesses from the Coalition’s 2020 grant program an additional $25,000 enhancement grant to support their long-term success and sustainability. Roughly 60% of the grant recipients were Black women-owned small businesses and 75% were Black-owned businesses with six or fewer employees.
Grants such as these can substantially help a Black small business owner such as Deandre Wade, owner of Fresh Sportswear, a small business in Antioch, TN that designs and manufactures custom uniforms for sports teams with a focus on youth.
“My business and life have done a full 180 since receiving support from the Coalition to Back Black Businesses program. With the enhancement grant, I will be moving my business out of my living room and purchasing the tools and equipment needed to begin mass-producing our products.”
The Coalition to Back Black Businesses was established in 2020 with the support of American Express via a multi-year grant making and training initiative. The organization received an initial $10 million commitment to support and empower Black-owned small businesses. Running through 2024, the Coalition will support Black owned businesses with two types of grants. Each fall, it will distribute $5,000 grants to qualifying Black-owned small businesses, who will then have an opportunity to apply for select $25,000 enhancement grants the following spring. Grant recipients will also receive exclusive access to mentorship programs, training, and online resources to help them grow and manage their businesses.
Now reaching the end of the program’s first year, the Coalition partners distributed 600 grants to Black-owned small businesses located in 33 states. The funds were used for a wide range of business needs to support the black business owners’ activities such as paying employees, repaying debts, covering rent and utility bills, among others. The largest percentage of grants were awarded to small businesses in the trade and services, retail, and healthcare industries. Grant recipients from 2020 were invited to apply for additional funds through the enhancement grants to help sustain and grow their businesses.
When American Express made the decision in 2020 to put their support behind black business owners, they set an ambitious goal that included a $1 billion action plan to enhance diverse representation and promote equal opportunities for colleagues, customers and communities. The company seeks to provide financial support and education to at least 250,000 Black-owned small and mid-sized businesses by 2024.
Additional program support for black owned businesses was provided by The AIG Foundation℠, Altice USA (Optimum & Suddenlink), Cummins Inc., Dow, and Stanley Black & Decker by contributing additional funds and resources. The list of award recipients may be found at: www.webackblackbusinesses.com/recipients.
The next round of grants will begin this September for eligible U.S. Black-owned small businesses when the Coalition to Back Black Businesses’ will open applications for 2021 grants.
Read how American Express also helps Black Women Entrepreneurs Gain Substantive Support
