The U.S. Department of Commerce launched the Capital Readiness Program grant competition today, which dedicates $93.5 million to helping minority and other underserved entrepreneurs launch and scale their businesses.
A press release reports that the Minority Business Development Agency administers the largest program of its kind in the history of the Commerce Department.
The Capital Readiness Program will provide funding to incubators and accelerators across the country. These organizations will have the expertise to assist and train minority and other underserved entrepreneurs seeking resources, tools, and technical assistance to start or scale their businesses in high-growth industries such as healthcare, climate resilient technology, asset management, infrastructure, and more.
One of the fastest-growing sectors in the economy is businesses owned by women of color. However, many women are prevented from starting their own businesses and accessing capital, childcare solutions, and peer networks due to structural barriers. The Capital Readiness Program will provide the curriculum, tools, resources, connections to subject matter experts and vendors, and peer support to minority entrepreneurs to help start or scale their business.
U.S. Secretary of Commerce Gina Raimondo said, “This new program reflects President Biden’s and the Commerce Department’s continued historic commitment to underserved business owners and entrepreneurs.” ”
During the pandemic, businesses and entrepreneurs owned by women and minority groups were some of the worst affected, often lacking the resources they needed to stay open. This cannot happen again. The Capital Readiness Program encourages and provides resources, such as childcare services, to help more people launch and scale businesses.
“U.S. Deputy Secretary of Commerce Don Graves said that in 2020, Black and Hispanic female founders accounted for less than half of a percent of total venture capital investments.” It is essential not only to spurring innovation but also to building a more resilient economy that is reflective of all Americans to jumpstart the next generation of entrepreneurs and ensure diverse representation in these high-growth industries.
The Department of Treasury’s State Small Business Credit Initiative (SSBCI), reauthorized under the American Rescue Plan Act of 2021, funds MBDA’s Capital Readiness Program. $10 billion is provided by SSBCI to states, the District of Columbia, territories, and Tribal governments to promote entrepreneurship, increase access to capital, and help businesses grow—especially in traditionally underserved communities. The Capital Readiness Program is intended to serve entrepreneurs and businesses that have applied, or plan to apply, to SSBCI or other government programs that support small businesses.
Deputy Secretary of the Treasury Wally Adeyemo said that entrepreneurs and small businesses in underserved communities have long lacked equal access to resources and capital to reach their full economic potential. ”
The Minority Business Development Agency will promote growth and competitiveness of our nation’s minority-owned businesses through the Capital Readiness Program by helping entrepreneurs and business owners obtain the information they need to access funding through small business support programs. Giving entrepreneurs and small business owners in all communities a chance to compete and thrive increases our country’s entire economic potential and growth.
Many women and minority communities face barriers to economic success that MBDA is the only federal government agency dedicated solely to supporting minority-owned businesses, enterprises, and entrepreneurs to overcome. The agency is uniquely situated to provide technical assistance and help these businesses be successful in applying to SSBCI capital programs and other government programs that support small businesses.
“The Capital Readiness Program will open doors for entrepreneurs,” said Donald Cravins, Jr., Under Secretary of the Minority Business Development Agency. ”
The main problem that disadvantaged entrepreneurs, especially entrepreneurs of color, face is lack of access. The MBDA can help entrepreneurs start and develop their business, access capital through the Department of Treasury’s SSBCI Capital Program, and access networks that understand and address the unique challenges minority entrepreneurs and other underserved entrepreneurs face.
Non-profit organizations, private sector entities, institutions of higher education, and consortiums of two or more of any of the above-mentioned entities are eligible to apply. The competition incentivizes applicants to address one of the largest barriers to women in the workplace by providing childcare solutions, such as on-site day care, as a strategic priority. The competition incentivizes proposals from organizations that are working to break down economic barriers for underserved communities and support traditionally underrepresented, high-growth industries while growing America’s economy.
A series of informational pre-application webinars will be hosted by MBDA starting in January. The webinars will help potential applicants to understand the Capital Readiness Program and the application requirements that are set out in the Notice of Funding Opportunity (NOFO). The webinars are scheduled for January 10, 17, and 24th 2023 at 2:00 pm Eastern Time.
To register for the pre-application webinars and for more information on the program, visit www.MBDA.gov.
