Juvia’s Place is showing its commitment to small businesses in the Black community by giving away $300,000, or six grants of $50,000 each, to Black entrepreneurs.
The Black-owned cosmetics brand is paying forward the help and support it received when it was a fledgling startup.
“As a Black-owned business, I understand firsthand the financial obstacles Black entrepreneurs face. I started Juvia’s Place with just $2,000 and a dream. I, like so many others, didn’t have access to lending, or a trust fund,” said Chichi Eburu, founder of Juvia’s Place, in a press release.
“My business was built with minimal financial resources, but I had a supportive community to lean on. That community support was essential to my business growth. I found mentors and customers that believed in my product, and helped to make my dream a reality,” she continued. “I appreciate the support, and want to make sure I can provide an opportunity to other Black entrepreneurs who are looking to grow their businesses.”
The press release notes that the aim of the grants is eradicating the challenges faced by Black entrepreneurs, and it details some of the stark realities these businesses face:
According to SCORE, 44% of Black small business owners use cash to fund their business as compared to the average small business owner (37%). The most popular funding sources for African American business owners are:
- Friends and family
- Lines of credit
- Rollovers for Business Start-ups (ROBS), financing that allows small businesses owners to tap into eligible retirement accounts to fund their businesses without tax penalties. Guidant says this grew by 21% in popularity among African-American small businesses year over year.
- Unsecured loans
- Peer-to peer
- Equipment leasing
- SBA Loans
Most of these sources require Black entrepreneurs to amass debt at high interest rates. These debt traps can kill a business before it even gets started. Black female entrepreneurs face even greater challenges.
The deadline to apply is August 31st. To be eligible, business owners must:
- be a U.S. citizen or legal resident of the U.S. with business operations headquartered in the U.S.
- identify as Black/African American
- have 2019 gross revenues between $1,000 and $250,000