Capital Access for Women of Color/Black Women (+Resources)

Capital Access for Women of Color/Black Women (+Resources)

funding for women of color usf family business center california

As women, we know it’s true. If you’re a woman, especially a Black woman or Woman of Color, starting a business will be more difficult for you than for your male peers. One of the many hurdles is capital access for women of color and Black women. So, we’ve compiled a list of capital resources geared towards serving women and People of Color. But first, let’s talk about the obstacles these entrepreneurs face when securing funding for business ventures.

Studies Say Women of Color Are NOT Riskier Bets

A recent study by Inner City Advisors (ICA) gathered data on loan habits to gauge whether Black women and women of color were riskier bets for banks. Their results showed that women of color were no more likely to default on loans than any other group of borrowers. They also showed that they had a 2-4.5% points lower credit risk than men applying for loans. Despite this, black women and women of color report extreme difficulties when it comes to accessing capital for their business ventures. And studies prove them right.

Inequality in Capital Access for Women of Color and Black Women

The same study by Inner City Advisors found that women consistently received lower loan amounts at higher interest rates, despite posing equal risk to banks. The average loan perceivedby men was $110,000 with an 8% interest rate, while women received $80,000 with a 9% interest rate. The difference was even more pronounced when it came to capital access for women of color and Black women. This was consistent even when results were controlled by industry.

But what about capital investors? There, the differences were even more pronounced. According to PitchBook, only 2.1% of all United States venture capital went to companies founded by women, which means even less for Black women and Women of Color. Another report by the Federal Reserve Bank of Kansas City found that Black women were more likely than their peers to report that they didn’t receive all or some of the funding they requested for their business ventures.

This has been especially devastating during the pandemic, where women and Black-owned businesses have had a much harder time accessing COVID resources than their peers. A Study by National Community Reinvestment Coalition used white (non-Hispanic), Black, and Hispanic secret shoppers to test banks reactions to call-ins about COVID-19 assistance. They found that Black women received the worst treatment, were given less information, and were discouraged most often from applying for loans. Hispanic women also experienced these problems at higher rates than men and white women.

Funding for Women in Business – Resources for Black Women and Women of Color

Clearly, equitable capital access for women of color and Black women requires deep structural changes. But for those who you need help financing businesses today, we’ve compiled a list of funding resources with focuses on businesses owned by women, Black people, and people of color.

State & Local Funding Resources

Inner City Advisors ICA / Fund Good Jobs | Link

  • Serves low-income individuals and underserved communities
  • CDFI business loans
  • Business coaching

Renaissance Entrepreneurship Center – Women’s Business Center | Link

  • Serves women business owners
  • Business trainings on successful growth and accessing capital

ASIAN, Inc. | Link

  • Serves Asian business owners and entrepreneurs
  • Emergency COVID business assistance
  • Multilingual financial education

Mission Economic Development Agency | Link

  • Serves Latino community members in the Bay Area
  • CDFI loans
  • Homebuyer assistance
  • Free tax preparation
  • Financial Education

San Francisco Entrepreneurs of Color Fund | Link

  • Serves entrepreneurs of color
  • Small business loans up to $1Million
  • Microloans as low as $5,000
  • Small business advising

Opportunity Fund | Link

  • Serves low and moderate-income immigrants, women, and other underserved business owners
  • Business loan provider

Alliance for Community Development | Link

  • Serves local, underrepresented entrepreneurs
  • Education on accessing capital
  • One-on-one business support through their People of Color Small Business Network

San Francisco African American Chamber of Commerce | Link

  • Membership organization for Black-owned businesses
  • Business loans
  • Education and training for entrepreneurs
  • Networking and business referrals

Hispanic Chamber of Commerce of San Francisco | Link

  • Umbrella organization for the Nicaraguan-American, Bay Area Centreal-American, Guatemalan-American, and Latin American & Caribbean chambers
  • Business education for members
  • Networking opportunities

Private and Government Resources Available Nationally

Black Girl Ventures | Link

  • Serves Black women business owners with businesses valued under $1Million
  • Support and opportunity to pitch to capital investors in network

The Minority Business Development Agency | Link

  • Serves minority-owned businesses
  • Connects businesses with loans from private lenders
  • Grants for women of color
  • Grants for minority-owned businesses
  • Grants for American Indian Alaska Native/Native Hawaiian business owners
  • Grants for formerly incarcerated persons
  • Access to contracts and markets

Local Initiatives Support Corporation | Link

  • Serves underinvested communities
  • Flexible loans from pre-development to permanent financing

National Minority Supplier Development Council | Link

  • Membership organization for minority-owned business enterprises
  • Business education
  • Access to institutional investors

Accion | Link

  • Serves underserved entrepreneurs
  • Small business loans
  • Advisory services
  • Capital investing for larger companies whose technology supports underserved micro-entrepreneurs

Backstage Capital | Link

  • Serves women, people of color, and LGBTQ business founders
  • Capital investing
  • Education on company growth strategies

In Conclusion…

Access to capital for women, especially Black women and women of color, can be a challenge. If you’re at the end of your rope, just know you’re not imagining it and you’re not alone. We hope these resources help you find the funding you need to take your business to the next level and beyond.

And for more information on local organizations serving small and family-owned businesses, visit our partner’s page.

Sign up and receive our
Beginner’s Checklist
for Getting
Noticed Online
Start with the basics to help people find your business online. Even with minimal upkeep, you can grow your visibility. Sign up to get the checklist.


Skip to content