Capital One has announced the Capital One business grant program, the goal of which is to support Black-owned businesses. It has also announced an upgrade to the Spark Cash Plus business credit card's welcome bonus.
"The combination of preexisting systemic inequities and pandemic-related setbacks has created a uniquely challenging environment for Black business owners to navigate," said Association for Enterprise Opportunity (AEO) President and CEO Connie Evans. The partnership with Capital One aims to build lasting success for Black-owned businesses.
Capital One also announced that new Spark Cash Plus cardholders can earn up to $3,000 from the card's welcome bonus. They can spend $5,000 in the first three months to receive $500 and $50,000 within six months to earn $2,500. The card earns 2% cash back for every purchase and has an annual fee of $150.
The welcome bonus and rewards for spending $50,000 in six months could help small business owners with high expenses add to their savings, purchase new equipment, or help out their employees.
4.3 million people quit their jobs in December according to a report from the U.S. Bureau of Labor Statistics. This means there are likely many potential entrepreneurs planning to start their own business in the new year, and consequently, the number of small businesses is expected to see record growth in 2022. Intuit estimates in its Business Insights report that a record-breaking 17 million new small businesses will be started this year.
"At Capital One, we know that small businesses are the heart of our communities, and now, more than ever, they need our support to endure and thrive," said a spokesperson for Capital One.
Other programs Capital One has launched include the company's business hub (where business owners can find advice and resources for navigating pandemic-related challenges), and the Capital One Impact Initiative, which is an initial $200 million, five-year commitment to help underserved communities, part of which includes support for small businesses.