Business and Finance

The philanthropic fund has raised over $2 million for entrepreneurs

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Black entrepreneur and seasoned philanthropist James Wahls, founder and CEO of Revolve Fund, believes that repayable grants at the moment are a viable capital option for Black businesses.

Wahls says his company has raised greater than $2 million in total, including $1.3 million in repayable grants to entrepreneurs of color across the country. It just secured $300,000 from the Surdna Foundation for planning, grantmaking and business support for Southern grantees. He also added that the fund goals to lift one other $10 million over the following three years.

He began it Working capital fund in 2020. Wahls says it helped entrepreneurs of color secure $10.9 million in additional external capital for their firms and nonprofits through direct leverage, co-investments, referrals and strategic guidance.

Wahls says repayable grants can provide black entrepreneurs with quick and controlled financing that will be used for several purposes. This may include starting a brand new enterprise, expanding an existing business, and testing latest products. Repayable grants have been a financing option for many years.

However, what perhaps makes grants so timely now could be that access to capital stays a giant obstacle for many black businesses. A recent report found that 76% of Black entrepreneurs said access to capital was a barrier. Wahls maintains that funders who need to boost businesses run by people of color should support repayable grant strategies, but they need to still be leveraged.

“Entrepreneurs of color face many challenges when trying to start or scale their businesses,” she says. “It is imperative that the philanthropic sector and traditional investors develop unique tools to address years of exclusion to meet the needs of this demographic. That’s what the Revolve Fund is trying to do.”

So what’s a repayable grant? Wahls defines it as a financial grant to a for-profit or nonprofit entity wherein all or a part of the investment is returned or directed elsewhere. It states that the grant will only be repaid if certain financial goals are met to support the grant’s charitable purposes. He emphasized that the subsidies aren’t a zero-interest loan, an ethical loan or every other financial product containing typical loan provisions.

He emphasized that they will be offered by grant-giving organizations, including: private foundations, public institutions, and non-profit organizations. He says the grants give black business owners the chance to show a repayment history and make them a stronger candidate for investment. The company reports that 80% of its repayable grantees are BIPOC-owned or led organizations.

Wahls says the Revolve Fund receives grants and donations to supply repayable grants. He added that current funders include the Annie E. Casey Foundation, JPMorgan Chase, PNC Bank, the Rockefeller Foundation and the Open Society Institute in Baltimore.

Wahls brings greater than 15 years of experience to the Revolve Fund. This includes work on the Annie E. Casey Foundation in Baltimore and the W. K. Kellogg Foundation in Battle Creek, Michigan. He says he has managed or co-managed over $250 million in investments, including grants, equity, debt and direct investments.

Wahls related to BLACK ENTERPRISES and shared his comments on the operation of the Revolve fund.

TO BE: Please explain what your fund does and the way it really works?

Choice: We offer repayable grants. With a U.S. focus, we’re working to extend access to capital through interest-free, repayable grant capital for businesses, nonprofits, financial intermediaries and emerging executives. Revolve offers a network of support partners, public relations specialists and investors to assist catapult recipient businesses.

TO BE: What is unusual about your organization’s reimbursable grant process?

Choice: Each repayable grant is designed individually based on several aspects and includes agreed repayment stages. My goal is to create an environment of trust and facilitate the transfer of data to beneficiaries. We offer compassionate capital that helps industrial-scale entrepreneurs connect with larger financial investors and prepare for future growth.

TO BE: Please tell us what are the risks related to repayable grants and does your organization help beneficiaries overcome them?

Choice: The risk is borne by the Revolve Fund. If scholarship recipients don’t meet their financial criteria, they shouldn’t have to pay back the cash. This means now we have accomplished our investments. But there’s a risk that the fund is willing to pay to push small businesses run by black people and other people of color forward. If they meet the financial criteria, they repay the fund. This allows us to recycle funds and spend money on latest entrepreneurs.

People concerned about applying for repayable grants can accomplish that Here.


This article was originally published on : www.blackenterprise.com

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