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By Ashley Portero
The Community Fund of North Miami-Dade is offering loans of up to $100,000 to Black-owned businesses unable to obtain funding from other financial institutions.
The community development financial institution has $1 million in loans to administer to South Florida businesses through the state of Florida's Black Business Loan Program. Black-owned businesses in the area are eligible to receive a five-year term loan between $10,000 and $100,000 to use for working capital, startup funding, inventory and more.
"Black entrepreneurs often are at a disadvantage to access capital to grow their businesses," Community Fund of North Miami Dade COO Nikisha Williams said. "That’s why it is important that we are able to bring financial and skills-based resources to Black entrepreneurs in Miami-Dade, enabling them to reach their full potential."
A representative for the fund said interest rates on the loans vary, but typically fall between from 5% to 9%.
As a community development financial institution, the Community Fund of North Miami-Dade offers financial services in low income or underserved markets. The fund, affiliated with the Opa-locka Community Development Corp., is also participating in the newest round of Paycheck Protection Program loans.
Black and other minority-owned businesses are more likely to be undercapitalized than their white counterparts, but can struggle to obtain financing from banks. The most recent round of PPP loans prioritized applications from CDFIs and minority-owned businesses after those businesses struggled to access loans during the program's earlier round.
The Community Fund of North Miami-Dade is one of three organizations in the state certified to provide funds through the Black Business Loan Program. Businesses can apply for a loan on the fund's website.