Lyndsey Alise, a self-described “serial entrepreneur,” had a problem: an ongoing battle with sensitive skin and ingrown hairs as a symptom of her polycystic ovarian syndrome.
Being entrepreneurial-minded, Alise’s solution grew into another one of her seven successful income streams, Camellia Alise Spa, located in Houston’s posh River Oaks area. But for that venture to reach its fullest potential, Alise needed what so many Black business owners have huge problems accessing – funding.
That’s when she was introduced to TruFund, an entity with the mission “to help historically disadvantaged individuals and communities create thriving and resilient small businesses and entrepreneurial ecosystems to close racial and economic disparities.”
“Two years into our operation we were ready to expand our business but were still too new for traditional financing,” said Alise. “When we learned about TruFund they turned our operations around and helped us to grow and expand in ways we couldn’t have even imagined. Without their help, we wouldn’t have been able to expand our brick-and-mortar operations and we are so grateful for a company like them who puts the small business community first.”
Located in Houston, TruFund’s Texas office targets construction, retail, nonprofit organizations and professional service small businesses in historically underserved low- to moderate-income communities across the state.
Funding hurdle
You don’t need an MBA to realize access to capital is the biggest hurdle Black businesses face. In fact, Charles O’Neal said, “the unfailing number one, two, three, four, five, six and seven, most affirmed challenge to Black-owned business is access to capital.”
And he should know. O’Neal is not only chair of the U.S. Black Chambers, Inc.’s board of directors, he’s also president of the Texas Association of African American Chambers of Commerce (TAAACC).
Even though Texas boasts 400,000 Black-owned businesses and has led the nation in the rate of business formation among Black women for nearly two decades, Black businesses in the Lone Star State still find it challenging to access funding.
According to O’Neal, such access is long overdue. He points out that Texas’ Black population (15%) receives only 1% of the state spending. It’s a reality O’Neal calls “criminal” and “taxation without representation.”
“When we’ve [accessed] money, and it’s not somebody else’s money,” said O’Neal, “it’s our tax dollars. When we’ve got our money returned to us at the same rate at which other communities are getting a return, we fix stuff.”
Thankfully, TruFund is not alone in its critical work of helping Black-owned businesses secure much-needed capital. Here are some others.
Lendistry
According to Reverend Carol Guess, vice chair of TAAACC, Lendistry was the first entity that came to mind when asked about organizations that help Black businesses access capital.
“Well, Lendistry is one of the ones that is at the top of the list because they formed a partnership with TAAACC, where our members are able to get access to capital in an easy way,” said Guess, who is also the general counsel for the Guest Group, a commercial real estate business.
Guess, who is also an estate planning attorney focused on wealth- and legacy-building, believes Lendistry plays a vital role in those pursuits.
“TAAACC has streamlined our application process with Lendistry and has started to get some of our member businesses funded. So, we’re really, really excited. This partnership started fairly recently and we’re starting to see the fruits of that. Lendistry has been a tremendous asset for our organization,” Guess added.
LiftFund
LiftFund is a local nonprofit organization that makes capital more accessible to help small business owners create wealth for themselves, their families, and their communities. Liftfund has disbursed nearly $1 billion of capital, 27,000 small business loans, 9700 jobs created and retained and given 70,000 hours of business support services.
In the wake of Hurricane Beryl, LiftFund mobilized to raise $4.5 million to seed loan programs aimed at helping small businesses in Houston and other declared disaster areas. Within the first week, LiftFund secured the necessary capital to launch the Beryl Relief Loan program—an initiative offering interest-free loans up to $35,000 to provide critical relief to Houston’s small business community during this challenging time.
The new loan program was made possible in large part by Wells Fargo, the lead funder and its generous $250,000 grant contribution.
“Congratulations to LiftFund and Wells Fargo for responding expeditiously to the urgent needs of small businesses,” said Houston Community College’s Associate Vice Chancellor for Entrepreneurship Houston Community College Maya Durnovo. “The no-interest loan demonstrates again their extraordinary commitment and dedication to our community.”
LISC
“Together with residents and partners, we help forge resilient and inclusive communities of opportunity across America–great places to live, work, visit, do business and raise families,” reads the mission statement of LISC.
LISC focuses on 10 areas of impact, with small business support being one of them.
Recognizing that many food-based businesses operate on razor-thin profit margins and that their owners need help navigating the ever-changing small business landscape to grow and thrive, LISC partnered with the Kroger Foundation to bring a solution.
The collaboration birthed support for four community-based business development organizations (BDOs) in Chicago, San Diego and Houston. The BDOs worked closely with food-based businesses to increase access to capital, strengthen financial and business practices and act as one-stop shops to help owners get the resources they need to succeed.
Across the three cities, 181 food-based businesses received one-on-one support from BDOs, with $500,000 in grants and loans secured to help them reach their goals. Some 94% of the enterprises served operate in low-to-moderate-income neighborhoods.
Resources
Texas Association of African American Chambers of Commerce
512-535-5610
info@taaacc.org
TruFund
3 Riverway Drive, Suite 555
Houston, TX 77056
346-388-4848
Texas@trufund.org
LISC
212-455-9800
Lendistry
Business Lending: 855-476-5870
LiftFund Houston
5444 Westheimer Rd Suite 1000, Houston, TX 77056
888-215-2373
