Colorado BIPOC Micro Equity Fund
Between 2007 and 2017, there has been a 79 percent increase in minority-owned small businesses, rising to 11 million entrepreneurs from diverse backgrounds across America.
However, the data shows that many minority businesses struggle to grow, develop resiliency and reach scale due to the historic systemic challenges they face.
The Colorado BIPOC Micro Equity Fund supports the growth and resiliency of Black, Indigenous, and People Of Color (BIPOC) owned businesses through patient equity-like investments designed to feel like friends and family capital.
! Small Business Labs, Emergent Research
What does the fund provide?
The Colorado BIPOC Micro Equity Fund provides growth capital to small businesses. Growth Capital is an innovative financing product that gives business owners the time they need to invest in and stabilize their companies. Unlike loan products, growth capital does not have fixed repayment terms; instead it's designed as a long-term investment where businesses repay only when they are successful in growing their revenue.
The Colorado BIPOC Micro Equity Fund aims to:
Build wealth for BIPOC business owners
Create and retain sustainable jobs
Build a track record of success for small businesses owners to attract future investment dollars
Offer flexible re-payment terms based on revenue and mutually agreed-upon targets
How Does it Work?
LISC makes growth capital investments in your company ranging from $50,000 to a maximum of $250,000 with flexible repayment terms.
Small businesses may use these funds to support growth and expansion plans such as:
Plans to expand into new geographies
Plans to diversify into new product lines, business lines, or business strategies
Plans to enter complementary industries with high barriers to entry, better profit margins, and higher start-up costs
Who is Eligible?
The Colorado BIPOC Micro Equity Fund focuses on small businesses that are:
Earning annual revenues above $250,000 and below $3,000,000
In operation for at least two years, with an ability to deploy capital toward business improvement and growth
Based in Colorado
Located in an economically disadvantaged community
* Sole proprietors and non-profit organizations are ineligible for this particular program. Be sure to check LISC’s COVID-19 Resource Page: https://www.lisc.org/covid-19/covid-resources/ for the latest resources available to nonprofit organizations and individuals.
Watch this video on now LISC Growth Capital works
“A significant barrier for far too many successful minority-owned businesses is access to patient growth capital. Some communities do not have access to a friends and family round of flexible financing. To fight racial inequities and fuel economic opportunities, we are proud to provide access to growth capital for successful BIPOC-owned businesses to take their businesses to the next level through the Micro Equity Fund. By investing in BIPOC-owned businesses to grow, scale, create jobs and promote wealth creation, these valuable businesses can help their communities thrive.”
- Ben L. Bynum, MD, Portfolio Director, Impact Investing, The Colorado Health Foundation.
The investment pools sponsored by LISC are available only to eligible investors, are offered only pursuant to their official offering documents, and are managed by LISC Fund Management, which is a wholly-owned subsidiary of LISC. LISC Fund Management is an investment adviser registered with the U.S. Securities and Exchange Commission (“SEC”). Registration of an investment adviser with the SEC does not imply any level of skill or training. Please visit the SEC’s website at www.adviserinfo.sec.gov to see LISC Fund Management’s Form ADV, which contains important disclosures, including further disclosures about material conflicts of interest, risks, and limitations associated with LISC Fund Management.