Locals Create Non-Profit Organization to Help Minority-Owned Business Owners in Fredericksburg Area | Local News
Joshua’s Hand is hosting a launch event on Saturday, October 23, at 3 p.m. at the Center for Faith and Leadership across from the University of Mary Washington campus.
Prior to the event, Joshua’s Hand will match all donations up to $ 1,000 and donate the full amount to a needy minority business at the launch.
âWe know that many minority-owned businesses struggle to obtain commercial capital and tend to finance themselves from their own household income,â Henry said. âSo the idea is that by supporting these businesses, they can grow to a place where they can rent and afford that real estate on Caroline Street. “
The obstacles Henry encountered when starting his business were not uncommon among minority entrepreneurs.
According to the US Department of Commerce’s Minority Business Development Agency, minority-owned businesses are much less likely to be approved for small business loans than white-owned businesses.
If approved, they are more likely to receive lower amounts and higher interest rates.
These discrepancies have made minority business owners more likely not to apply for small business loans for fear of rejection.
Minority-owned businesses were also less likely to benefit from the federal paycheck protection program, which was intended to help small businesses stay open during the first months of the COVID-19 pandemic.