Black Economic Alliance Entrepreneurs Fund (BEA Entrepreneurs Fund)

Black Economic Alliance Entrepreneurs Fund

Geographic Scope: Nationwide (all interested and eligible Black entrepreneurs across the United States)

Focus Areas:

• Seed, start-up, and early-stage capital for Black-founded and Black-led businesses
• Closing the racial wealth gap through business ownership
• Supporting Black entrepreneurs in all industries

Key Features:

• Evergreen fund that recycles 100% of returns to support ongoing operations and additional investments
• Anchored by Wells Fargo with a $20 million commitment over five years
• Investments made in the form of equity via convertible debt or straight loans
• A portion earmarked to invest in Center for Black Entrepreneurship (CBE) participants

Eligibility:

• Black entrepreneurs (founders and business owners)
• Emerging business founders
• Alumni from historically Black colleges and universities (HBCUs)
• Students
• Participants in programs that focus on Black business development

What They Fund:

• Seed capital investments
• Start-up financing
• Early-stage business capital
• Equity investments and loans to Black-owned businesses

Background:

• Launched through collaboration between Black Economic Alliance Foundation and Wells Fargo
• Addresses documented disparities in venture capital access: Black founders received only ~1% of venture capital financing before 2020; even after 2020 influx, only ~3% of $147.6 billion venture capital went to Black-founded companies
• Federal Reserve 2020 data: only 26% of Black business owners received full financing they sought from banks vs. 54% of white business owners
• Reflects focus on business ownership as one of the best paths to multi-generational wealth creation

Organization: Black Economic Alliance Foundation (501c3 nonprofit affiliate of Black Economic Alliance)

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

Application Process

Status: Competitive application process expected to begin later in 2021 (from May 2021 announcement)

Submission Format:

• Competitive application process
• Once the BEA Fund begins investing, it will accept applications from all interested and eligible Black entrepreneurs across industries nationwide

Eligible Applicants:

• 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

Investment Structure:

• Investments made via equity in the form of convertible debt
• Equity stake in exchange for seed capital investment
• Straight loans to Black start-up businesses also available

Note: Specific application materials and detailed submission requirements not provided in available documentation. Applicants should contact the BEA Foundation directly for current application procedures and detailed requirements.