AUSTIN – Minority-owned businesses are one of the fastest growing groups of entrepreneurs in the U.S., with 11.1 million minority-owned businesses comprising 40 percent of all small businesses – nearly double the rate since 2007. With $1.2 million in new funding from the Wells Fargo Foundation, BCL’s Diverse Growth Fund provides a new path to capital for established minority-owned businesses, with relaxed underwriting and collateral requirements, and includes no-cost small business coaching for the life of the loan.
Growth capital is the biggest barrier to creating a strong, sustainable business. Many entrepreneurs need access to capital to create new income streams, diversify their services and products, and ultimately create new jobs. The Texas Small and Diverse Growth Fund, operated by nonprofit lender Business and Community Lenders (BCL) of Texas, will level the playing field for growing minority-owned businesses.
“With the Texas Small & Diverse Loan Fund, we’re taking a major step toward helping diverse businesses access the capital they need to grow,” said Paige Harris, Vice President of Community Lending & Investment at Wells Fargo. “We’re so happy to work with our nonprofit lending partner BCL of Texas to address the wealth gap amongst businesses owned by people of color, women, veterans and other diverse owners.”
The $1.2 million grant is part of the Wells Fargo Works for Small Business: Diverse Community Capital Program, a collaboration with the Opportunity Finance Network to empower diverse small business owners with greater access to capital and training and to spark small business growth across the country. To date, the program has helped small businesses create and retain more than 45,000 jobs nationwide.
Feeding the local economy through small biz loans
Adrian Paredes of Tamale Addiction is one small business owner who has worked with BCL of Texas through its Texas Small & Diverse Growth Fund. The company’s first loan from BCL helped Tamale Addiction to purchase products, develop a strong marketing campaign, and grow their presence in the market. After repaying the first loan, BCL approved a second loan to help the business with production equipment that helped Adrian increase capacity and scale.
Tamale Addiction has grown from being sold only at Farmers Markets to having its own store, food truck, and a presence in local grocery stores. Paredes says, “It’s not just food that I am selling. I am part of a community.”
The new grant will help minority-owned businesses across the state to grow and have a ripple impact across the economy by creating approximately 80 new jobs.
“Access to capital is the primary challenge minority-owned businesses face,” said BCL of Texas CEO Rosa Rios Valdez. “This new funding from Wells Fargo allows us to work hand-in-hand with Texas entrepreneurs that are ready to scale up their businesses for a larger and more sustainable economic impact to their local community.”
To learn more about BCL’s small business lending programs, call 512-912-9884 or visit https://bcloftexas.org/lending.
 of Texas, will level the playing field for growing minority-owned businesses.){kind=link}