Economic Justice Fund Launches COVID-19 Crisis Loans for Sacramento Micro-businesses
Gaining access to funding is one of the biggest challenges entrepreneurs face and the most critical to their success.
A report by the Ewing Marion Kauffman Foundation states that 90 to 95 percent of businesses with employees need financing when they are getting started, but only 16.5 percent use a loan from a bank or other financial institution as a source of startup capital. The report notes that 64.4 percent of entrepreneurs rely on personal or family savings and 14 percent rely on personal or business credit cards to launch their businesses.01
Underserved entrepreneurs face special obstacles to obtaining financing:
These disparities constrain the ability of underserved entrepreneurs to secure the capital they need, which in turn constrains their ability to start and to grow their businesses. The result is that underserved entrepreneurs have fewer opportunities to succeed.
We believe that underserved entrepreneurs deserve to have equal access to capital, and we are committed to providing the financing they need to build successful businesses that will generate new economic opportunity for their communities as well as for themselves.
Percentage of low-risk minority firms approved for full loan amount requested05
Percentage of low-risk non-minority firms approved for full loan amount requested05