How BIPOC businesses can get funding in next round of federal relief - Business Insider

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7 ways BIPOC-owned businesses can position themselves to land substantial funding in the next round of federal relief, according to the founder of a small business loan marketplace

Make a list of lenders that you worked with in the last round, and don't put all your eggs in one basketHecht said that in many cases in the first round of the PPP, loan seekers initially submitted their applications to just one lender, then sat back to await the results, only to be disappointed by long delays and then crestfallen when the funding ran out so quickly.

"I think that's where a lot of small business owners got screwed in the last round, by going whole hog with one lender," Hecht said. "It's smart for lenders, but not smart for the small business owner." A simple spreadsheet in Excel will enable you to track all of your applications and the status of each in order to stay on top of the process.

. Hecht said that the next round is rumored to include additional cash for businesses that have previously received funding. In that instance, businesses should also include all their forgiveness documentation in the paperwork they prepare for submission. Hecht said that businesses that had some form of an account at a community bank, especially one that participated beginning with the first round, had "amazing" success in getting funded.

"Community banks took care of their communities," he said. "Open up an account there if they participated. They had a great track record of success."If you're an existing merchant with an online marketplace , Hecht said that many of them did a great job for their customers and are worth checking out. However, their lending patterns exhibited many of the same racial disparities as the traditional banking marketplace, a fact for which Hecht had no explanation.

"There are some extra variables here that may speak for it, but I think that's one of the more surprising, perplexing things about this," he said.Hecht pointed out that aside from federal funding, there are many"They can be hard to come by and hard to identify, and frankly, it can be difficult to research them at trusted online sources that provide information about that kind of stuff," Hecht said.

 

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