Taking direct action to assist black business communities impacted by the pandemic, American Express has teamed with the U.S. Chamber of Commerce to launch the “Coalition to Back Black Businesses”, a $10 million grant program supporting black owned small businesses in their recovery over the next four years.
In addition, a coalition comprised of the four major Black chambers: the National Black Chamber of Commerce, the National Business League, the U.S. Black Chambers, Inc., and Walker’s Legacy are working to support the initiative.
The timely launch of the grant program comes in light of the disproportionate impact of COVID-19 on Black small businesses that were twice as likely to close during the onset of the pandemic, compared to small businesses nationally. American Express’ latest initiative aligns with its long-standing commitment to back small businesses and underrepresented communities. Announced this past week, the application process to receive $5,000 in grants closes on September 21st.
“Small businesses play a crucial role in our communities, and when the pandemic hit, Black-owned small businesses were hit the hardest,” said Anré Williams, Group President, Global Merchant & Network Services, American Express.
U.S. Chamber and MetLife research revealed that minority-owned small businesses more often reported their failure to obtain a loan to support their recovery from the pandemic (13% vs. 8% of non-minority businesses). In addition, 66% of minority-owned small businesses shared their concerns of having to permanently close.
To be eligible, applicants must be a Black small business owner and have between 3-20 employees, be located in an economically vulnerable community, and been adversely impacted financially by the COVID-19 pandemic.
Eligible applicants who have submitted a streamlined application by September 21st will be considered for the Coalition’s random selection of 280 applicants who meet the requirements. Those selected will receive an email for a more in-depth application to be completed by September 28. A wait list will be used, as well. At the end of the process, 280 applicants will receive a $5,000 grant.
Women-owned businesses will make up at least 25% of the awarded grants. All grantees will be notified via email and the grants will be disbursed on a rolling basis starting on October 6. In addition, grantees will be invited to join a mentorship program to move their businesses forward. There is one time eligibility for those selected, but others may re-apply over the next three years.
