Historically, Black female entrepreneurs and minority business owners have faced significant hurdles in securing business capital.through its Fearless Strivers Grant Contest and provided much-needed financial support. But a recent lawsuit has cast a shadow of uncertainty over these efforts, jeopardizing progress thus far.in 2018. The Atlanta-based organization addresses the lack of access to venture capital for women of color entrepreneurs, offering grants, mentorship and resources.
Blum, who spearheaded the overturning of affirmative action in higher education, alleges the Fearless Fund engages in racial discrimination by limiting its Fearless Strivers Grant Contest to Black women entrepreneurs. The lawsuit cites explicitly a violation of Section 1981 of the 1866 Civil Rights Act, which makes it illegal to consider race when making or enforcing private contracts.On September 30, 2023, the 11th U.S.
•Why is it harder for minorities to get small business loans? According to the national think tank Third Way, getting small business loans is more challenging for minorities due to several factors, including: branch closures in underserved communities; little to no collateral options to secure small business loans; stringent lending requirements; limited business relationships with banks; low incentives for small business loans.
•Limited access to capital has left the majority of minority-owned businesses to cover business expenses with personal funds