Metropolitan Business League Foundation

We developed the Capital Access Program to provide financial assistance to businesses applying for capital based on their specific needs and credit. We offer a portfolio of emergency grants and microloans and resources for businesses in addition to application support and financial counseling. The financial portfolio is comprised of five (5) lending tiers:1) Grants, 2) KIVA Loans, 3) Bridging Virginia Loans, 4) CDFI Loans, and 5) Traditional Banking Loans. We use a national portal system through KIVA to accept applications and track all loans and their repayment. Through our partnership with Virginia Community Capital, we utilize their software and portal system to receive applications for all grants.  

Our mission is to educate, empower, and elevate specifically black and brown business owners, and entrepreneurs, by augmenting technical expertise, increasing access to capital, and stimulating business growth throughout Richmond. And spearheading loan origination throughout Virginia with a “boots on the ground” approach to building relationships and generating new loan opportunities.  

The program assists businesses with increasing capacity and viable measures and solutions for obtaining capital. In January 2022, we hired a Capital Access Manager (CAM) to manage the program and support small businesses and community development projects with a special emphasis on underserved and low-income communities.   The CAM is responsible for identifying and assessing borrowers’ capital needs, making referrals, and assisting with originating, processing, and underwriting loan applications for small business and community development borrowers. 

The persistent racial wealth gap in the United States is a burden on Black and Brown Americans as well as the overall economy. It can be traced back to the Jim Crow era and redlining that prevented Black people from accessing higher-paying jobs and homeownership opportunities. So by supporting black and brown businesses we increase the flow of wealth to black and brown families and communities. This ultimately helps to close the racial wealth gap over time. 

Secondly, the number of women starting businesses is growing nearly twice as fast as the overall growth of women entrepreneurs over the past five years. And the ninth Annual State of Women-owned Businesses Report finds firms owned by women of color grew at more than double the rate of all women-owned businesses. Women-owned businesses continue to fuel the economy and now represent 42% of all businesses. 

Statistics illustrate over 42%  of small businesses fail due to a lack of cash flow.  And 8 out of 10 black businesses fail within their first 18 months due to the lack of resources and funds. Many minority businesses lack relationships with traditional banks and fail many times to have adequate credit or a strong financial portfolio for securing capital from traditional financial resources.  2021 Report on Firms Owned by People of Color, conducted by the U.S. Federal Reserve showed black-owned firms that applied for traditional funding were least likely to receive the total funding they sought.

The Capital Access Program supports small businesses and community development projects with a special emphasis on underserved and low-income communities. 

The pandemic caused many Richmond businesses to experience loss of contracts or closure.  Many did not have adequate reserve funding to cover the day-to-day operational costs and the acumination of outstanding bills.  So, businesses needed support from organizations like the MBL to help them research and obtain financial resources.  

As we transition during this new norm, we are one of a few organizations that provide innovative entrepreneurship programs. And we understand there is a need to provide capital and financial resources for small businesses, especially black and brown business owners.  Forbes indicates, that access to capital has stunted the ability of minority business owners to maintain cash flow and cover operating costs. In fact, more than half of black business owners polled in a recent national survey cite lack of access to cash as the main hindrance to their ability to grow.

The marketing and outreach efforts will be in historically marginalized communities in Richmond and Petersburg, VA. A primary focus will be communities that include people of color, low-to-moderate income individuals, and women. 

As our organization continues to grow, it is important for us to have a strong online presence to ensure our ability to increase our capacity and service.  The creation of digital content will allow us to increase the effectiveness of our communication and our overall solution. 

As mentioned, we operate throughout Virginia.

Yes, our mission is to help launch small businesses and to sustain small businesses.  We are a nonprofit, membership-based business association that aims to foster small business development. For over 50 years, we have been the backbone for the development, support, and advancement of SWaM businesses. The MBL was originally organized to assist contractors, restaurant owners, and service companies. Today, the MBL draws its membership from just about every industry and represents the interests of small, women-and minority-owned businesses in the Metropolitan area. 

The MBL has always been the catalyst for creating new programs and providing a multitude of resources and groundbreaking initiatives to address inclusion and support businesses. We provide comprehensive entrepreneurship training, workforce development, and business resources year-round at NO COST. 

Our efforts will center our member businesses and community partners through storytelling. We will capture these stories through various digital mediums including videos.

There are currently 2.6 million black-owned businesses in America.  According to The State of Working America, “Black people spend four percent more money annually than any other race although they are the least represented race and the race that lives in poverty at the highest rate.” It would be more beneficial if more money was recycled within the black community. More importantly, it would generate more wealth within the community pillars to establish a comradery sense for youth and adolescents.

When black-owned businesses are in high demand, the companies are more profitable. Showing your support helps contribute to creating entrepreneurial opportunities. Black entrepreneurship can fuel the black community's economic prosperity and serve as a bridge where low-income families can move up to middle-class status. 

In 2016, statistics showed the average wealth of households with a head identifying as black was $140,000, while for white-headed households was $901,000, nearly 6.5 times greater.” Support for black businesses can increase the flow of wealth to black families and black communities. And can help to close off the racial wealth gap over time.

Supporting black-owned businesses, you’re supporting black pride, unity, and self-determination. Our solution strategy of supporting Black and Brown entrepreneurship ultimately becomes a structured roadmap for survival and scaling the growth of black and brown businesses. We do this by providing financial resources, support, financial knowledge, and technical training. 

Current number: 250

# serving in one year: 500

# serving in five years: 1000

Many of our members reside in Richmond, and are longstanding business owners, in low-to-moderate-income neighborhoods. In addition, many of our programs (Women Initiatives, Youth Entrepreneurship Program, Veterans, ReEntry, and Entrepreneurship Series) provide support to over 750 individuals with business and workforce development training each year. Richmond's median household income ranges from $17,652.00 to $28,167.00, and the unemployment rate ranges from 12% to 22.20%. Historically, the MBL supports communities and neighborhoods with significantly higher poverty rates. Specifically, in the Richmond Metro community where the poverty rate is escalating by over 25%. An estimated 76% of Richmond families are minority female head of households, where no husband is present to assist financially. "One in four Richmond residents lived in poverty in 2015- the second-highest concentration of indigence among Virginia's 30 largest cities according to statistics released by the U. S. Census Bureau. 

Through our partnerships and relationships with city and state government, and corporate partners, we provide a successful infrastructure to provide support to Small, Women, and Minority Businesses. We have worked closely and in support of Richmond Mayor, Levar Stoney, Request for Proposal to ignite the redevelopment of a significant portion of real estate located in the neighborhood north of Broad Street, in downtown Richmond. The North of Broad Neighborhood Redevelopment Project will include a number of economic development components aimed at revitalizing underutilized city assets and improving the quality of life for Richmond residents in the areas of employment, housing, and transportation.

The MBL continues to work in partnership with the City of Richmond and our mission aligns with its redevelopment plan. As we work to better prepare our members, particularly those in construction, our goal is to increase training, and educate contractors on successfully bidding and securing contracts. We are currently working with J & G Consulting to develop a curriculum that will provide technical and software training and assist with qualifying for contracts. 

MBL advocates for the economic growth and development of small, women, and minority-owned businesses by focusing on the expansion of business opportunities, fostering alliances, and building capacity. Supporting businesses contribute directly to their communities; creates reliable job sources and strengthens the regional economy. The rationale for developing entrepreneurship programs and resources for businesses is important in fueling the economy.

We work to ensure that small, women-owned, and minority businesses have substantial opportunities to have a positive impact on socio-economic growth through greater integration into the region's economy. The recent COVID-19 pandemic is affecting small businesses located in low-income areas. Many are seeing contracts placed on "indefinite hold" and others are getting cancellations based upon the current situation and on assumptions of how this crisis will progress. Small businesses are such a valuable part of the supply chain because they are more innovative and operate in niche markets where larger businesses are absent. COVID-19 could wipe out over 60% of local businesses. 

In collaboration with the City of Richmond (Office of Minority Business Development, Office of Community Wealth) providing resources and training and has been successful in withdrawing interest from new business owners and helping them secure procurement opportunities and sustaining their businesses.  

For over 50 years we have been the backbone for the development, support, and advancement of SWaM businesses. The MBL was originally organized to assist contractors, restaurant owners, and service companies. Today, the MBL draws its membership from just about every industry and represents the interests of small, women-and minority-owned businesses in the Metropolitan area. 

We develop trust by 1) Focusing on the mission statement, 2) producing bigger outcomes, and 3) increasing our visibility. Staff continues to foster partnerships with a host of organizations and civic groups throughout the community. Our efforts will center our member businesses through storytelling. Most recently we developed an initiative to specifically recruit businesses located in south Richmond through our partnership with the Truist Advisory Council. Our goal is to capture the support of the community and businesses (tell the stories) through various digital mediums including video, interviews, and media coverage.   

The Metropolitan Business League continues to gain positive momentum through developing better relationships and partnerships with a host of agencies and partners throughout the City of Richmond.  We have developed partnerships with other like-minded entrepreneurship organizations. As we look to expand services and resources; we continue to focus on our mission statement, increase visibility, and be aggressive with establishing working relationships with a host of partners. 

The following is a list of goals we hope to develop in the next 5 years: 

1) Create a database of financing terms by region/business type, similar to a Glassdoor salary database 

2) Assist over 150 businesses with developing better banking relationships with traditional lending institutions

3) Open the first Small Business Capital Access Resource Center where potential borrowers have access to resources and manager

Over the last 4 years, we have increased membership and revenue by over 400%. The MBL is the fastest-growing membership organization in Virginia.  Our staff consists of qualified individuals that are committed to the mission.  We continue to focus on three key areas in order to expand our services: 1) day-to-day operations, 2) performance improvement, and 3) driving the growth of the MBL organization.  assisting the organization to strategically plan for expanding initiatives and financial stability and flexible funding.  We have an engaged and working Board of Directors that is always eager to assist with day-to-day operations. 

The Capital Access Program under the direction of Sharon Anderson Grooms, Capital Access Manager, continues to develop. To date, we have processed and endorsed ten(10) KIVA loans; six (6) are fully funded totaling $33,000.00, with 20 additional applications in various stages in the pipeline. As a KIVA hub, we are positioning the organization to increase revenue from potential new sponsors and grants. The CAM assists Kiva applicants with technical assistance, application screening, and crowdfunding support to help them successfully reach their funding goal.  We continue to have a positive impact on the business community throughout Virginia. We continue to increase education, procurement opportunities, and capital for members and the organization.  We continue to research and follow trends and understand the importance of what sponsors will support as we transition through this new norm. 

Innovation leads to change, which organically translates to growth! Be a part of our innovation and allow us to sustain a model like no other. Collectively, we can make strides to improve the economic development in the Richmond community and truly support small businesses. As a signature sponsor and dominant source of funding for the Capital Access Program, you will directly impact black and brown business owners in not only starting but successfully maintaining businesses.  

Prior to COVID, we were already looking at ways to be more innovative and develop new initiatives. Like providing business education webinars with subject matter experts, monthly virtual and hybrid entrepreneurship training and events, and online resources.  As we transition during this new digital era, it is essential for the MBL to increase our online presence. We understand the importance of providing a quality website, that is user-friendly, with accessible information for our members and public viewers.  We want to increase our social media presence and digital marketing efforts. These are all examples of how MIT can provide support.   

Providing employees who can volunteer as subject matter experts in the financial arena provides us with a pool of speakers to assist with improving members' knowledge and resources and developing relationships with traditional banks. Together we can continue to foster success by continuously providing networking and growth opportunities to help connect small and medium-sized business owners with other corporations like Truist. 

N/A

Our partnership goals needed are 1) Subject Matter Experts in Technology, Marketing, and financial resources,  2) Human Capital and engaged volunteers, and 4) Strategic planning.  The following are a few examples of how we need assistance with achieving this goal:  

1) Assist with revising our website

2) Create a database to collect financial information 

3) Provide staff to provide financial workshops and counseling

4) Provide support with creating a national marketing strategy

5) Improve branding and marketing efforts

6) Create digital content for education and marketing purposes

Collaboration has been the key to our success over the past two years. We want to develop a structured Memorandum of Understanding (MOU) and cultivate partnerships that allow us to increase our capacity and provide quality services and programs.

Collaboration has been the key to the development and success of the Capital Access Program. Through our partnership with the City of Richmond and the National League of Cities Initiative, the MBL will be the first KIVA hub- a national crowdfunding microloan program in the state of Virginia. The MBL is responsible for managing and providing opportunities for startup businesses to secure nontraditional, low-interest, KIVA microloans up to $15,000.00.  Both the Metropolitan Business League and Bridging Virginia seek to promote a healthy small business and affordable lending ecosystem. Bridging Virginia is a non-profit partner focused on leveling the playing field for historically disadvantaged small businesses in Greater Richmond.  Collectively, we will provide loans up to $25,000.00 to small businesses while also providing technical assistance training and business coaching. 

In addition, the Capital Access Manager will work closely with CDFI representatives, LISC Virginia, Virginia Community Capital, Peoples Federal Credit Union) and other financial partners.