As part of its efforts to support African-American-owned businesses, Capital One has announced the creation of a business grant program and a new incentive on its Spark Cash Plus business credit card.
Capital One and the Association for Enterprise Opportunity (AEO) are offering $10,000 scholarships to Black-owned businesses to “help Black-owned firms develop sustainable futures.” The program aims to make up for revenue lost while the epidemic was at its worst.
When preexisting structural inequalities are combined with pandemic-related losses, an extraordinarily difficult environment to manage is formed, AEO President and CEO Connie Evans remarked in a news release. Capital One hopes to safeguard its long-term sustainability by partnering with Black-owned businesses.
New Spark Cash Plus cardholders could earn up to $3,000 in additional cash, Capital One said on Tuesday. Earn $500 if you spend $5,000 in the first three months, and $2,500 if you spend $50,000 in the year’s first half. The card carries an annual fee of $150 and offers 2% cashback on all transactions.
An additional $50,000 in six months might help small business owners save more money, help their employees, or purchase new equipment thanks to the welcoming incentive and the additional rewards.
4.3 million Americans left their jobs in December, according to the Bureau of Labor Statistics, showing that many new entrepreneurs are ready to start their enterprises in the new year.
Up to 2022, the small business sector is predicted to increase at a historic rate. 17 million new small businesses are expected to spring up this year, according to Intuit’s Business Insights study.
In an email to ZDNet, a Capital One official said, “We realize that small businesses are the backbone of our communities and that they require our support now more than ever to survive and grow.
Grants from Capital One and a new welcome bonus are just two recent examples of the bank’s efforts to help small business owners.
To help business owners cope with pandemic-related challenges, the organization has launched a “business center.”
Small company funding is part of the $200 million 5-year commitment of the Capital One Impact Initiative.
According to an email from Capital One, “During these hard times, it is vital for all business owners to recognize that they are not alone and that there are resources available to give both support and camaraderie.”