Target grants for black businesses are Target’s commitment to devote $2 billion to Black-owned businesses by the end of 2025. Since making the commitment; the retail chain has multiplied its financing in Black-owned products, businesses, and vendors by more than 50%.
There are other financing alternatives open to BIPOC small businesses, but Target is at the top of the agenda. According to the 2020 Annual Business Survey of the United States Census Bureau, there were an approximated 134,567 Black- or African American-owned businesses with 1.3 million workers.
When the global epidemic started in early 2020, the National Bureau of Economic Research discovered that Black-owned businesses were the most affected among minorities, with a 41% declining trend from February to April of that year.
Small business grants can help black business owners in the United States bankroll a business initiative or grow their businesses.
Grants, unlike loans, are not required to be reimbursed. Grant beneficiaries must never communicate their headway with the granting institution, the institutions and corporations that provide grants are expected to set eligibility for their aspirants.
Target has helped various businesses through opportunities such as; Target Accelerators and events like the Black-Owned Business Vendor Fair.
It has added product lines from 500 Black-owned companies to its multi-category retail outlet and also works with more Black-owned businesses to improve its business outlets and customer journey. Target is launching innovative resources to assist Black-owned vendors in developing and effectively scaling their companies in mass retail.
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Requirements for Target Grant for Black Businesses
To be eligible for Target Grants for Black Businesses, you must meet the following requirements;
- Make all the product categories available at Target aside from apparel and accessories, jewelry, DVDs, CDs, car seats, shoes, strollers, books, movies, music, video games, bath, bedding, furniture, heating, cooling, air quality, home appliances, kitchen, and dining.
- Will need to be an LLC, C-Corp, B-Corp, S-Corp, or other registered entity.
- You must be 18 years and above.
- Must have a physical product for sale.
- Must have the desire to sell products in mass retail.
- Should sell directly to consumers online, in specialty stores, or have a limited physical presence.
- Must have a minimum of 6 employees and a lifetime revenue of $5,000 – $500,000
- You must not be a current Target vendor.
- Have limited/no manufacturing and supply chain capabilities
How to Apply for Target Grants for Black Business
Determine a Project or Need in Your Company
Target grants, like other grants, are given to companies that can demonstrate a clear demand. You will be expected to demonstrate how your business would maintain its existence or continue to grow and expand as an outcome of receiving the grant.
Organize Your Company
If you have a functioning business, it is imperative you have a well-defined structure and be licensed by the state. You can choose whether to run your business as an S corporation, LLC, or sole proprietorship. Nevertheless, an actual business structure is required.
Arrange Your Financial Records
Possessing and compiling your tax records, financial services, and financial reporting records will demonstrate that you run a productive and successful business. The ability to monitor and evaluate revenue and cost is also required for Target grant applications—they want to reward entrepreneurs who have a firm knowledge of their finances.
After you have completed all the preceding steps, you can initiate the application process. Organize your grant application and get it reviewed by a companion or fellow business owner before submitting it. Keep due dates in mind—you don’t want to apply at the last second.
Target Corporation, headquartered in Minneapolis, provides services in over 1,900 stores and on Target.com. It has donated 5% of its profits to neighborhoods since 1946, amounting to huge amounts of money per week.
Target recently introduced the Forward Founders program in response to the demand to further support traditionally underserved founders. Take into account the steps and information listed above if you believe you are eligible for Target Grants.