Bank of America introduced a new program to help drive business growth for minority and women business owners.
The Small Business Down Payment Grant Program was launched this week in select markets with plans to expand in 2023. The program will extend credit to historically disadvantaged small business borrowers and provide support to make purchasing commercial real estate more affordable.
“Today, many business owners of diverse backgrounds lack the access to capital and technical assistance needed to qualify for commercial loans, which can help secure transferable assets that build equity across generations,” Jill Calabrese Bain, small business integration and transformation executive at Bank of America, said. “We’re committed to addressing inequalities in business ownership by providing entrepreneurs with the access to expertise, resources, and capital necessary to achieve their financial goals.”
The program will be available for eligible women and minority business owners applying for Small Business Administration (SBA) 504 and 7(a) commercial real estate loans. The commercial real estate properties must be based in Opportunity Zones, as defined by the U.S. Treasury, in Atlanta, Chicago, Charlotte, Dallas, and Los Angeles. Eligible business owners can apply for down payment grants, covering up to 50 percent of required injection — capped at $25,000.
To be eligible for the program, the businesses must be at least 51 percent women or minority-owned and have owner occupancy. There must also be a 5 percent minimum down payment from the applicant. Additionally, Bank of America will collaborate with local non-profit partners to provide financial education services.