Providing entrepreneurs a funding injection toast, Tito’s Handmade Vodka is making $250,000 in grants available to help entrepreneurs enlarge their businesses.
The vodka maker will provide 10 grants worth $25,000 apiece to small business owners. The funding is tied to its “Love, Tito’s Small Business Grant Program.” The Austin, Texas-based company is partnering with the Accion Opportunity Fund as the grant fund administrator. The funding initiative is part of a move to celebrate Tito’s 25th anniversary.’
According to its website, Accion Opportunity Fund
works to create an inclusive, healthy financial system that supports the nation’s small business owners by connecting entrepreneurs to affordable capital, educational resources, coaching, and networks. “Through innovative partnerships and outreach strategies, we target underserved entrepreneurs—including entrepreneurs of color, low-income entrepreneurs, and women—who often lack access to the financial services they need to build and grow their businesses.”’Tito’s reports that the program’s goal “is to offer entrepreneurs one less obstacle to overcome and one more opportunity to succeed,” according to its website.
The
funding is vital. For instance, 41% of Black small business owners are more inclined than the average 32% of small business owners to seek additional financing to address challenges their business faces. Data also shows minority entrepreneurs often don’t apply for small business loans due to fear of rejection or that they will get lower amounts and higher interest rates if approved, according to a recently shared JPMorgan Chase analysis that included surveying 150 Black small business owners.Further, 48% of Black small business owners reported they expect to gain a loan or line of credit for their business in 2022. Still, only 19% were “very confident” in their businesses’ ability to access capital. In contrast, roughly 30% of owners overall anticipate obtaining a line of credit or loan for their business this year, and 31% say they feel very confident in their business’s ability to access capital. The data is from Goldman Sachs’ 10,000 Small Business Voices “Small Businesses on the Brink” survey.
Eligible small businesses must meet several criteria. For instance, applicants must be business owners, be at least 21, and their venture must be U.S. based. And there are many businesses from various industries— including banks, tobacco stores, payday lenders, and alcohol-licensed companies—that are ineligible. As such, applicants may do well to thoroughly check out the eligibility requirements to gain further details and apply here by the June 30 deadline.
Grant winners will be informed in July and should expect to gain funding in August.