Capital One announced Tuesday the launch of the Capital One business grant program, which aims to promote African-American-owned businesses and an update to the welcome bonus on the Spark Cash Plus business credit card.
Capital One is working with the Association for Enterprise Opportunity (AEO) to “assist Black-owned companies in creating sustainable futures” by distributing $10,000 scholarships to Black-owned enterprises. The initiative tries to compensate for revenue lost during the pandemic’s peak.
“The combination of pre-existing structural injustices and pandemic-related setbacks has created a landscape that is exceptionally difficult to manage for Black company owners,” AEO President and CEO Connie Evans stated in a news statement. Capital One’s new alliance aims to ensure the long-term viability of Black-owned businesses.
Additionally, Capital One said Tuesday that new Spark Cash Plus cards might receive up to $3,000 in welcome bonus cash. Spend $5,000 within the first three months and get $500, while spending $50,000 within six months earns you $2,500. The card earns 2% cashback on all purchases and charges a $150 annual fee.
The welcome incentive (together with additional awards for spending $50,000 in six months) may assist small company owners with high expenditures in increasing their savings, assisting staff or purchasing new equipment.
According to the United States Bureau of Labor Statistics, 4.3 million people departed their employment in December, indicating that many new entrepreneurs are likely eager to launch their businesses in the new year.
Small enterprises are expected to see historic growth through 2022. In its Business Insights report, Intuit anticipates that a record-breaking 17 million new small companies will launch this year.
“At Capital One, we understand that small companies are the lifeblood of our communities, and they require our help now more than ever to survive and prosper,” a Capital One representative told ZDNet in an email.
Capital One’s grant program and new welcome bonus are only two of the most recent initiatives to assist new small company owners.
Additional projects include the company’s business hub, which provides advice and tools to help business owners through pandemic-related difficulties.
The Capital One Impact Initiative is a $200 million, five-year commitment to assist underprivileged regions, including small business support.
“During these trying times, it is critical for all company owners to understand that they are not alone and that there are tools available to provide both support and community,” Capital One wrote in an email.