CRPAt the National Urban League, we believe that small business ownership is key to closing the racial wealth gap. However, minority and underserved entrepreneurs lack resources for business formation and expansion. In the United States today, the numbers are staggering:

  • Only 2% of businesses are Black-owned
  • Black businesses pay a $250,000 premium to start the same business as those owned by non-socially and economically disadvantaged individuals 
  • Black and Latinx founders receive only 2.4% of total venture funding
  • Approval rates on applications for credit are lower for startups of color; business owners of color have a 53% rejection rate for loans, lines of credit, and merchant cash advances compared to their white counterparts (27%) 

To address these gaps, we have launched the Urban Capital Readiness Program in partnership with the U.S. Department of Commerce’s Minority Business Development Agency (MBDA). Through our affiliate entrepreneurship centers and the support of the Urban Empowerment Fund*, the program seeks to address these challenges by:

  1. Empowering entrepreneurs with business training to cultivate expansion and optimize scalability
  2. Facilitating connections and cultivating continuous professional growth through networking opportunities with capital providers
  3. Fueling business ventures and fostering sustainable growth through access to vital capital and support

*The UEF is a 501(c)(3) not-for-profit organization, a Certified Community Development Financial Institution (CDFI)—Loan Fund, and a minority business enterprise development and finance organization. It is a subsidiary of NUL and a single-member not-for-profit corporation, with NUL serving as its sole member.

The Opportunity

Through the program, the Urban Empowerment Fund will serve as a capital partner, helping small businesses obtain loans and capital needed to grow their operations and expand in their markets. In addition to raising capital, participants in the program will receive technical assistance and resources, including business training, networking, and access to capital through three affiliates: 

Each affiliate will assist entrepreneurs in recovering from the effects of the pandemic within their operations and provide information and tools to stabilize and grow their businesses. They'll provide community outreach through direct contact with clients' businesses and through existing partnerships with other local organizations that offer services to low- and moderate-income minority and women-owned businesses.

Important Information

The Stevens Amendment, PUBLIC LAW 101-166, SECTION 511, is an appropriations provision that requires grantees of the Departments of Labor (DOL), Health and Human Services (HHS), and Education to disclose the percent of the costs financed with federal funds for a grant program.

  • Workforce Innovation and Opportunity Act (WIOA) programs are 100% federally supported by the U.S. Department of Labor as part of an award totaling $12,322,633, with $0 (0%) state, local, and/or non-governmental funds.

  • Temporary Assistance for Needy Families (TANF) programs are 100% federally supported by the U.S. Department of Human Services as part of an award totaling $8,712,649, with $0 (0%) state, local, and/or non-governmental funds.

  • Discretionary grants are federally supported by the U.S. Department of Labor as part of an award totaling $3,971,331, with $2,929,950 (74%) being state, local, and/or non-governmental funds.