A boost for minority businesses in Charlotte
Writer: Eleana Teran
October 2024 — Charlotte allocated a record $2.85 million in city funds to new and expanded bond contracts with local Minority, Women, and Small Business Enterprises (MWSBEs), according to the newly released City of Charlotte’s FY23 Annual Report. The Office of Charlotte Business INClusion (CBI), highlighted the city’s ongoing efforts to bridge the opportunity gaps for historically underrepresented businesses and foster sustainable growth in the community.
“Small minority businesses (under 50 employees) employ 41% of the eligible workforce in the region, making them the single largest employer in the region,” said Chad Turner, the CEO of the Carolinas LGBT+ Chamber of Commerce, in an interview with Invest:.
“A lot of times, small business owners do not see tax cuts or incentives, because many times, they are too busy working in their business rather than working on their business. They don’t have the pool of attorneys and lobbyists like the larger companies throughout the region who are constantly in the legislature, constantly talking to the city council or the county commission. What we’re trying to do is assist them in bridging that gap. In that way, we can offer to be the voice in the halls of the legislature and to our local elected officials,” he said.
Professional services contracts awarded to these businesses rose from $5.5 million in FY22 to an impressive $10.6 million in FY23, reflecting a concentrated effort by city officials to enhance economic opportunities and diversify the business landscape. CBI’s initiatives also included the launch of the Contractor Development Program, which enrolled 92 participants. Through this program, local contractors received 1,770 technical assistance services and 825 contractor development services, boosting their bonding capacity and enabling them to secure competitive contracts.
Additionally, the CBI welcomed 80 new vendors into its MWSBE Directory and launched a five-week Bidding and Estimating Training Academy that served 37 contractors through 16 training sessions.
The city’s investment in MWSBEs aligns with a broader vision to support the economic growth of historically marginalized communities. According to a report from UNC Charlotte Urban Institute, the racial wealth gap in the county has long limited opportunities for minority groups, with white households possessing 10 times the wealth of Black households and 7 times that of Latinx households. This disparity stems from generations of discriminatory policies that have hindered equity and wealth accumulation, including redlining, urban renewal, and unequal labor and criminal justice practices.
Charlotte’s $40 million Small Business Growth Fund, launched earlier this year, aims to tackle some of these systemic barriers by providing access to capital for over 2,000 local businesses, many of which are minority or women-owned. The fund, part of Mayor Vi Lyles’ Racial Equity Initiative, targets entrepreneurs of color, who have historically faced significant challenges in accessing traditional loans. According to the CLT Alliance Foundation, approximately 70% of these loans are expected to benefit entrepreneurs of color, making it one of the largest non-pandemic-related funding opportunities in Charlotte’s history.
Access to capital remains a crucial issue for Black business owners in particular. A survey by Intuit Quickbooks found that 57% of Black entrepreneurs had been denied bank loans at least once. The Charlotte Small Business Growth Fund offers an alternative, with community development financial institutions (CDFIs) providing fixed-interest loans. Entrepreneurs can access loans ranging from $1,000 to $250,000, with flexible repayment plans designed to ease the financial burden of running a business.
Charlotte’s local efforts are further supported by federal initiatives. During a March 2024 visit to Durham, Vice President Kamala Harris announced $32 million in funding through the State Small Business Credit Initiative. The funds were allocated to 10 women- and minority-led venture capital firms, including RevTech Labs and Nex Cubed, which will invest in startups and small businesses across North Carolina.
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