BEA Entrepreneurs Fund

Focus Areas:

• Seed, start-up, and early-stage capital for Black-owned businesses
• Support for Black entrepreneurs and business owners
• Closing the racial wealth gap

Geographic Scope: Nationwide (all interested and eligible Black entrepreneurs across industries)

Eligibility:

• Black entrepreneurs and business founders
• Emerging business founders
• Alumni from historically Black colleges and universities (HBCUs)
• Students
• Participants in programs that focus on Black business development
• All interested and eligible Black entrepreneurs across industries nationwide

Investment Structure:

• Equity via convertible debt (equity stake in exchange for seed capital investment)
• Straight loans to Black start-up businesses
• 100% of returns recycled to support ongoing operations and additional investments

Key Features:

• Evergreen fund structure for long-term sustainability
• Anchored by Wells Fargo with $20 million commitment over five years
• Competitive application process for investments
• A portion of the fund earmarked to invest in Center for Black Entrepreneurship (CBE) participants

Background:
The fund was created in response to documented disparities in venture capital access for Black entrepreneurs. Studies show Black founders received roughly 1% of venture capital financing before 2020, and only approximately 3% of the $147.6 billion venture capital deal volume in 2020 went to Black-founded companies. Federal Reserve data (2020) showed only 26% of Black business owners received full financing they sought from banks, compared to 54% of white business owners.

Contact/More Information: https://foundation.blackeconomicalliance.org/bea-entrepreneurs-fund/

Application Process

Application Status: Competitive application process expected to begin after fund launch (late 2021)

Key Application Details:

• Once the BEA Fund begins investing, it will accept applications from all interested and eligible Black entrepreneurs across industries nationwide
• Applications submitted through competitive process
• All investments made available via competitive application process

Eligible Applicant Types:

1. Emerging business founders
2. Alumni from historically Black colleges and universities (HBCUs)
3. Students
4. Participants in programs that focus on Black business development
5. All interested and eligible Black entrepreneurs across industries nationwide

Note: Specific application materials, forms, narrative questions, and detailed submission procedures were not available in the provided documentation. Applicants should visit the fund website for current application details and requirements.