Network Owners Create $ 2.5 Million Loan Program To Help Black Businesses

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Brooklyn Nets owners Joe and Clara Tsai have created a $ 2.5 million loan program for black companies affected by COVID-19.

The funds are part of a $ 50 million commitment from the Tsai Foundation Social Justice Fund to help minority communities. The loans will be specifically for those with a credit rating of 620 or below. However, applicants will not be judged on their credit ratings, which means that they will need reliable references in order to obtain a loan.

Two types of loans will be available to applicants. The Fast-Track Loan offers immediate funds of up to $ 15,000 interest-free for black businesses that remained open during the pandemic but still need funds for equipment, repairs and rent.

“We know there is no social justice without economic opportunity, which is why we are so excited to launch the Brooklyn EXCELerate Lending Program to boost BIPOC in Brooklyn. [Black, indigenous, and other people of color] are business owners after the pandemic and are doing their little bit to overcome the barriers this community faces in accessing capital, ”Clara Wu Cai said in a statement.

The “restart” loan is for black business owners who have temporarily closed or reduced their opening hours due to the pandemic. Jobseekers with good reviews can apply for up to $ 100,000 at a 2% interest rate to help business owners fully resume and normalize business operations.

When the money for the loans is paid off, it is returned to the fund and new applicants can apply for the loan. The interest fees will be used to cover administrative costs.

Black-owned businesses have been shattered during the coronavirus pandemic. According to House of Representatives Committee on Small BusinessBetween February and April 2020, the share of black companies fell 41 percent. Also, Forbes reported In August 2020, a pandemic nearly wiped out half of black small businesses. Black-owned businesses also had difficulty getting the Wage Protection Program. financing

TruFund Financial as well as Brooklyn Alliance Capital will oversee the loans, and Gregg Bishop was hired as the fund’s executive director. Bishop previously served as Commissioner for the New York City Department of Small Business Services and believes now is the time to make fair changes to help black businesses.

“As the city recovers from the pandemic, we have the opportunity to do it better than we have done before, to remove some of the longstanding barriers to the accumulation of black wealth, and to ensure that everyone can benefit equally from capital. who comes to our city anew, ”the bishop said in a statement.



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