The Black Economic Alliance has teamed with Wells Fargo to launch a fund that aims to expedite the growth of black business owners and entrepreneurs. The project is known as the Alliance Entrepreneurs Fund or BEA fund.
This $50 million BEA fund will provide capital funding to small businesses that are founded by African Americans. Wells Fargo has also agreed to support this effort with a $20 million commitment over the course of the next five years.
Owning a business has proved to be one of the top ways to obtain generational wealth in America. However, too few African American entrepreneurs have been able to obtain the financial resources necessary to launch and sufficiently grow a business. The Black Economic Alliance powered by Wells Fargo will work to provide Black-owned businesses with the support needed to succeed, which will, in turn, result in the hiring of more Black workers and added investments into black communities and businesses.
The BEA powered by Wells Fargo will also reportedly recycle all of its returns to support the ongoing operations in black businesses.
Black businesses, in particular, have been hit hard by Covid-19. In a press conference, President Joe Biden made a statement reporting that 400,000 Black-owned businesses have shut down nationwide since the start of the pandemic.
The Black Economic Alliance powered by Wells Fargo will provide capital loans in exchange for an equity stake and will also offer straight loans to Black startups. The recipients of these loans and investments will be selected through an application process which will take place later this year. The BEA will accept applications from all eligible African American entrepreneurs.