The Houston Equity Fund will distribute the second round of funding (about $8 million) in the form of grants to small businesses.
Donor Name: Houston Fund for Social Justice and Economic Equity
State: Texas
County: Selected Counties
City: Houston
Type of Grant: Grant
Deadline: 05/31/2023
Size of the Grant: $75,000 – $100,000
Grant Duration: 12 months
Details:
This opportunity supports mission-aligned diverse-owned small businesses and nonprofits within the City of Houston that positively impact vulnerable communities. Grant funds must be used to acquire or upgrade tangible assets. The Grant Program is intentionally inclusive of small businesses, at various stages of maturity, that demonstrate a need for a grant to support their start-up, stabilization, or growth.
Grant funds must be used to purchase or upgrade tangible assets, including but not limited to property, machinery, equipment, and inventory that support economic development in underserved communities.
Purpose
The purpose of the Open for Business Grant Program (Grant Program) is to advance the mission of the Houston Equity Fund to enact transformational change by investing resources into organizations and initiatives that empower and uplift communities of color. A key aspect to being transformative is to embrace a rigorous process to select and fund organizations that can demonstrate direct, tangible, and meaningful impact related to the pillars of the Houston Equity Fund listed below.
- Social and Racial Justice
- Social Services, Criminal Justice, Healthcare, Civic Engagement, Immigrant Rights, Environmental Justice, Domestic Violence/Human Trafficking
- Economic Development
- Support future talent, startups, business owners, and workforce development activities that aim to address income and wealth disparities
- Youth Empowerment & Education
- Provide education, literacy, innovation, mentorship, advancement, scholarship and career opportunities
- Community Building
- Secure access to vital resources, revitalize community spaces, celebrate Black history and culture.
Grant Priorities
The overarching Grant Program goal is to advance the charitable mission and four pillars of the Houston Equity Fund. In particular, the Grant Program funds will be used in furtherance of educational and charitable purposes, including but not limited to, promote social welfare through the goals of eliminating prejudice and discrimination that has prevented Small Businesses from accessing financial capital, relieving underprivileged and distressed Small Business owners, and supporting economic development in low-income and vulnerable communities, all within the meaning of section 501(c)(3) of the Code.
Funding Information
- Grant awards will range from $5,000 – $65,000. Grant award amounts will vary by applicant. For all applicants, award size is determined based on, but not limited to, the following factors:
- External objective reviewer scores and award recommendation
- Rigorous due diligence process
- 2022 Gross Revenue.
- In Round 2, the Houston Equity Fund has allocated $500,000 to award approximately six or fewer grants ranging from $75,000 – $100,000 to high scoring applicants that qualify.
- To be considered for this opportunity, applicants must:
- Have plans to invest in a capital-intensive asset, such as facility construction or renovations, land, machinery, or equipment, which will facilitate the business’ growth and greater community impact.
- Complete supplemental proposal questions that demonstrate how this investment will impact the business and the community served by the business.
- If needed, be willing to participate in an interview process prior to selection. Translation support will be made available for applicants in Spanish, Chinese, Vietnamese, and American Sign Language.
Grant Terms
All grants must be used to acquire or upgrade eligible tangible assets, defined as:
- Purchase of or improvements to land
- Construction of new buildings or facilities
- Renovations of existing buildings or facilities
- New or upgraded machinery or equipment
- New or updated technology
- Purchase of inventory
- Improvements or modernization of streets, utilities, parking lots, landscaping
The grant period is 12 months. Funds must be fully utilized/committed within 6 months of award.
Target Populations
Self-identifies with one or more of the following target populations:
- Diverse-owned or women-owned small businesses
- Immigrant or foreign-born small business owners
- Small business owners whose primary language is not English
- First-generation small business owners
- First-generation high school graduate or college graduate
- Older adult (50 years of age or older) small business owners
- Small businesses owned by people with disabilities
- LGBTQ+ small businesses owners
- Gender non-conforming or non-binary small business owners
- Small businesses owned military service members and/or veterans.
Eligibility Criteria
Applicants must meet ALL the following criteria to be eligible to apply:
- Business established and registered with State of Texas prior to December 31, 2021
- Business location is within the City of Houston
- The tangible asset must be invested in and impacting a vulnerable community as identified in the Geographic Eligibility Map
- Mobile and Home Businesses should refer to FAQs for further details clarifying geographic eligibility
- Have 1- 100 employees, including the owner, full-time, and part-time employees and 1099 contractors engaged in supporting your business
- 2022 Annual Gross Revenue of $3,000,000 or less
- Business type is a sole proprietorship, limited liability company (LLC), corporation, or partnership
- Business owners must be 18 years of age and reside in Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, or Waller counties, as their primary home address.
For more information, visit HFSJEE.
