Bank of America today announced the launch of a Small Business Down Payment Grant Program to spur business growth and help create generational wealth opportunities for women and minority business owners. companies.
Launched in select markets with plans to expand in 2023, the program will extend credit to historically disadvantaged small business borrowers and provide support to make buying commercial real estate more affordable, according to a news release.
“Today, many business owners from diverse backgrounds lack access to the capital and technical assistance needed to qualify for business loans, which can help secure transferable assets that create equity. clean across generations,” said Jill Calabrese BathHead of Small Business Onboarding and Transformation at Bank of America.
“We are committed to addressing inequalities in business ownership by providing entrepreneurs with access to the expertise, resources and capital needed to achieve their financial goals. »
The program will be available to eligible women and minority-owned business owners applying for 504 and 7(a) commercial real estate loans for the Small Business Administration (SBA). Commercial real estate properties must be based in Opportunity Zones in Atlanta, Chicago, Charlotte, Dallas and Los Angeles as defined by the US Treasury. Eligible business owners can apply for down payment grants, covering up to 50% of the required injection (capped at $25,000).
Program eligibility requirements also require 51% female or minority business ownership and owner occupancy, and a minimum 5% down payment from the applicant. Additionally, Bank of America’s small business specialists will team up with local nonprofit partners focused on small business to provide financial education services.
Bank of America is committed to helping small business owners in local communities across the country through many resources beyond the Small Business Down Payment Grant program, including:
– Secured credit offers: The previously announced Bank of America Secured Business Advantage line of credit launched last week, offering a $1,000 to $50,000 line of credit for business owners. Earlier this year, Bank of America also launched the Business Advantage Unlimited Cash Rewards Mastercard® Secured Credit Card as a new tool to help business owners establish, strengthen or rebuild their business credit, while offering cardholders the most important benefits for their business. . Line of credit ranges from $1,000 to $10,000, earning unlimited 1.5% cash back on all purchases.
– Capital Access Directory: a comprehensive database designed in partnership with Seneca Women to help women and minority entrepreneurs learn more about navigating the capital landscape and identifying potential sources of funding , such as equity, debt and grants.
– Start a Business Center: A consolidated content resource to help potential and new business owners learn how to start or grow their business. The digital experience offers resources such as business plan templates, partners for critical services, and access to Bank of America Small Business specialists. Clients can utilize advice and considerations on topics such as writing a business plan, legal business structures, marketing strategy, and business financing options.
– Small Business Resources: As part of Bank of America’s ongoing commitment to supporting our small business customers and their financial priorities, we continue to expand our digital educational content. The site offers tools, information and expert advice to help entrepreneurs manage and grow their business. The education center provides advice and solutions for all aspects of business ownership, covering topics such as business strategy, client relationships, financing options, optimizing operations, cash flow management and more.
To learn more about our small business resources, download the Bank of America app or visit bankofamerica.com/smallbusiness.
In related news, Bank of America also announced today that it is offering a no-down payment, no-closing-cost mortgage solution in select markets. The new Community Affordable Loan Solution™ aims to help eligible individuals and families obtain an affordable loan to purchase a home. It’s now available to first-time home buyers buying in select Black/African American and/or Hispanic-Latino neighborhoods in Charlotte, Dallas, Detroit, Los Angeles and Miami. This new program complements the existing $15 billion Bank of America Community Homeownership Commitment™, which provides affordable mortgages, grants and educational opportunities to help 60,000 low-income individuals and families way to access affordable housing by 2025.