Charlotte leaders announce $40 million to help minority, women-owned small businesses
After saving up money, Jorieka Downey followed her passion of cooking up Southern cuisine and opened G.R.I.T.S. CLT, a food truck and catering company a few years ago.
But the journey as a small business owner hasn’t been easy. Funding is a challenge, especially when competing for chefs to help in the kitchen.
“As a small business owner, I am not able to offer as many incentives to my employees,” she said. “That’s been a struggle in trying to find really certified chefs that will accept my pay with no benefits when they can go to other places.”
A new loan program with $40 million staked to it may help ease the burden for entrepreneurs like Downey, with the launch of the Charlotte Small Business Growth Fund. CLT Alliance Foundation and Scale Link made the announcement Tuesday during a news conference at Shiloh Institutional Baptist Church.
This is one of the largest non-pandemic access to capital opportunities directed at small businesses in the history of Charlotte, according to the foundation.
The Charlotte Small Business Growth Fund will help more than 2,000 minority- and women-owned businesses over the next four years. It’s part of the Mayor’s Racial Equity Initiative.
‘Resources that we need to grow’
Downey plans on being one of the thousands to apply. She started G.R.I.T.S.( an acronym for Girls Raised in the South) in 2019. It serves a fusion of Southern, Caribbean, Creole, Spanish, and African meals.
A generator fire totaled her food truck last month. She’s planning to apply for bank loans, and the new growth fund will be another application that she plans to fill out soon.
Downey attends a lot of events related to small businesses and enjoys meeting people who are hands-on with helping entrepreneurs. The Tuesday announcement was another on her list.
“They are helping us get all the resources that we need to grow our businesses in whatever areas that we need to grow in,” she said.
Partners for the initiative include Ally Charitable Foundation, Atrium Health, Bank of America, City of Charlotte and Truist.’
“We know the number one barrier to growing your business is access to capital,” said Nate Hogan, president of the CLT Alliance Foundation “So, this is attacking that barrier.”
Loans and outreach in the program will be done through community development financial institutions. It’s anticipated that more than 70% of these loans could benefit entrepreneurs of color, according to the foundation.
Charlotte Mayor Vi Lyles said the initiative is a groundbreaking partnership among the organizations.
Funding details
▪ Available loans range in size from $1,000 to $250,000
▪ Loans have fixed interest rates of 9% to 12%. The origination and application fees range from 3% to 5%
▪ Average loan length is 48 months
▪ The fund is open to all businesses headquartered in Charlotte, but is designed for businesses that do not qualify for traditional bank loans due to age of the business, credit history or lack of collateral
▪ Advising for applicants is available from participating community development financial institutions and other local partners to help entrepreneurs qualify for loans.
▪ Business owners interested in receiving funding through Charlotte Small Business Growth Fund can learn more and apply online at: charlottegrowthfund.org.
The groups in the program
The Charlotte Small Business Growth Fund was formed to help under-served small businesses in the city. It has a matching program that connects small businesses to lenders, and is a division of Scale Link.
Scale Link provides microloans from financial institutions for community development.
The CLT Alliance Foundation provides assistance to entrepreneurs and employers with resources to gain capital, customers and employees.
