New Black Restaurant Fund offers up to $250,000 in support

A new Black Restaurant Fund, from Uber and the Local Initiatives Support Corporation, aims to help Black restaurant owners in underserved communities who often lack access to capital due to historical economic inequalities.

The Black Restaurant Fund will provide growth capital investments in Black-owned restaurants ranging from $25,000 to $250,000 with flexible repayment terms.

Growth capital is a financing option that gives business owners the flexibility needed to invest in and stabilize their businesses. Unlike traditional loans, growth capital doesn’t require fixed repayment terms. Instead, it functions as a long-term investment, with repayment structured as a revenue-sharing agreement with LISC.

Businesses only repay when they successfully increase their revenue.

The Black Restaurant Fund’s objectives include building wealth for restaurant owners in underfunded communities, creating and maintaining sustainable jobs, helping small business owners establish a strong track record to attract future investment, and offering flexible repayment terms based on revenue and mutually agreed-upon goals.

The Black Restaurant Fund targets food service businesses with annual revenues between $250,000 and $3,000,000, which have been in operation for at least two years and can deploy capital toward growth and improvement. Eligible businesses must also be active Uber Eats partners and located in economically disadvantaged or underserved areas.

“There's a huge economic disparity and a huge economic gap in resources being received to Black businesses, particularly Black restaurants in the city,” said Shemicia Bowen, co-founder of Richmond Black Restaurant Experience.

The Richmond Black Restaurant Experience is as a week-long celebration focused on uplifting Richmond’s Black culinary scene. Its mission is to address economic challenges faced by minority-owned businesses.

This year's Black Restaurant Experience will be held March 9-16, marking the event's ninth year.

Bowen says many restaurants have been feeling the impact of issues such the meal tax, a decrease in foot traffic, the city’s water crisis, staffing and infrastructure support.

“These things have a longer lasting impact than what I think people really realize,” she said. “People don't understand the non-sexy part of running a business. It takes a tremendous amount of work. Understanding finance and scheduling, staffing, funding sources, permits. There are a ton of people who are just disconnected. They know how to do their trade, they know how to do their service, and not not necessarily have strong infrastructure and back office support.”

Bowen says she's positive the fund would be helpful for not only the restaurants and their owners, but for the city as a whole.

“Any dollars, but specifically, dollars to small businesses and restaurants, not only plays into and sustains the volatility of these businesses, but (also helps) from a tourism perspective. Our restaurants' health is sometimes like a wellness check on how well the city is doing,” said Bowen.

Sole proprietors and nonprofit organizations are not eligible to participate in the program.

Businesses can apply to participate at https://app.smartsheet.com/b/form/b8e18e9d880c4f20ab06763f9bf04596.