Intending to provide Black entrepreneurs some extra fuel, Progressive Insurance and Hello Alice are now taking applications for $250,000 worth of grants to Black business owners.
The funding is part of Progressive’s Driving Business Forward grant program. It calls for 10 small business owners to be awarded $25,000 each to buy a commercial vehicle for their business.
Progressive is one of the nation’s largest car insurers. Financial technology firm Hello Alice will run the grant program.
Though 20% of Black Americans launch businesses, just 4% of the enterprises survive the startup stage largely because Black business owners have difficulty securing financing, according to McKinsey & Company.
Another report showed almost 80% of Black entrepreneurs are confident they run flourishing businesses, yet gaining capital remains a struggle. Some 46% report dealing with issues gaining financing. And 38% disclosed no relationship with a lender and 21% declared they did not know where to apply for capital.
To qualify for one of the $25,000 grants, applicants must sign up for a free Hello Alice account and finish the application by 6 p.m. June 2. Grant recipients will be announced in August.
Karen Bailo, commercial lines president at Progressive Insurance, said, “At Progressive, we recognize the challenges that small business owners are faced with each and every day. Our hope is this program will provide some assistance to Black entrepreneurs as they navigate their small business journey and help them combat any barriers.”
Hello Alice co-founder and President Elizabeth Gore added, “We are so excited to work with Progressive again this year and host the Driving Small Business Forward Grant Program. Recipients will be able to drive their business forward with the capital needed to purchase a commercial vehicle.”
Progressive started the program in 2022, aiming to back diverse small business owners nationally. It has committed $600,000 toward small businesses with Hello Alice.
Learn more about the grant program here.