Access to Capital
Access to capital continues to be the most important factor limiting the expansion and growth of minority-owned businesses, and the current financial environment has placed an even greater burden on minority entrepreneurs who are trying to keep their businesses thriving in today’s economy. In reviewing the state of the credit markets, five common themes exist:
- Less money is flowing, and the requirements to obtain credit are much more stringent.
- Companies with strong credit ratings are paying five percentage points more than the federal governments to borrow money and more than double the premiums they paid previously.
- Real estate is less valuable as an asset or collateral. Real estate prices have declined.
- Cash/marketable securities are the most preferred source of collateral but are not readily available in the minority business community.
Working Capital Loan Fund
In response to this reality, the Commission on Economic Inclusion has established a financial resource to fill the gap for minority-owned companies in Northeast Ohio. With the support of the business community and committed volunteers, the Commission created a working capital fund to serve as an essential component of the MBE’s toolkit for success and growth.
The Commission will assist Minority Business Enterprises (MBEs) in securing working capital providing they are viable businesses and meet the following criteria:
- Have a proven track record
- Have support from a reference within the business community
- Have secured a revenue growth opportunity
- Are actively engaged in a business advisory relationship
- Are able to provide legitimate collateral
- Have some existing equity
- Have difficulty acquiring traditional capital
For information on the Commission's Access To Capital “Working Capital Loan Fund,” please contact the MBE Portfolio Manager, Wyatt Brownlee, at (216) 592-2231 or firstname.lastname@example.org.
Click here to read or download our “Access to Capital” brochure.