Fearless Fund and Accion Opportunity Fund partner to provide loans up to $250,000 to underinvested entrepreneurs

Atlanta, GA, Jan. 9, 2024 – Fearless Fund, an investor in early-stage consumer and technology startups founded by women of color, and Accion Opportunity Fund (AOF), a financial support system for small businesses on a mission to advance economic justice for all, launched a new partnership today to increase lending to underinvested entrepreneurs. This partnership will advance economic mobility and wealth creation by connecting Fearless Fund’s extensive network — more than 60,000 women of color who own small businesses — to AOF’s flexible capital and free coaching resources.

Despite their enormous contributions to economic growth and job creation, entrepreneurs from diverse backgrounds frequently face challenges in accessing capital through traditional financing channels. A recent survey report by AOF found that 80% of Black entrepreneurs who have not received financing for their business said it was because they could not find the right support and/or afford to pay for services to connect them to capital. Many entrepreneurs do not know that flexible financing and other resources are available through community development financial institutions (CDFIs) like AOF.

Through this new partnership, Fearless Fund will introduce its network of entrepreneurs to AOF’s free resources and coaching, as well as flexible and transparent loans up to $250,000. These loans can be a game-changer for underinvested entrepreneurs — allowing them to sustain their enterprises, purchase equipment and inventory, drive job creation, boost their advertising, and grow their business.

“We are thrilled to partner with Fearless Fund, an organization that is fully aligned with our values and mission of creating a more just and inclusive economy. With their network of entrepreneurs combined with our proven ability to provide affordable, transparent financing, we can further unleash the brilliance of this country’s entrepreneurs,” said Luz Urrutia, CEO of Accion Opportunity Fund, which has loaned $800 million to more than 30,000 small businesses since inception. “By supporting a new wave of diverse small businesses, we can strengthen Main Streets, revitalize local economies, and build equitable prosperity.”

As the first venture capital fund founded by and for women of color, Fearless Fund has directly invested almost $27 million in businesses led by under-resourced women. Through this partnership, Fearless Fund will further bridge the funding gap for women of color by connecting its audience of more than 164,000 entrepreneurs to AOF’s flexible capital and free resources. For the first time, Fearless Fund will be able to refer entrepreneurs to small business loans to fit their needs, on top of its highly successful equity and grant offerings. This is a significant milestone for the firm, which has always desired to address multiple types of unmet funding needs for the under-resourced founders in its ecosystem.

“We recognized that there are a large quantity of businesses in our ecosystem who need and deserve financial support within the gap that equity funding and grants cannot cover. Accion Opportunity Fund aligns with the mission of Fearless Fund in backing under-resourced entrepreneurs and offers flexible and practical loan solutions,” said Arian Simone, Co-Founder of the Fearless Fund. “Small business owners stimulate regional economies through increased wages, spending and tax revenue. When they succeed our whole world benefits.”

For more information, please visit www.fearless.fund/loans

Fast Facts About the Fearless Fund / Accion Opportunity Fund Partnership

Women of color are leading the small business boom.

• Women own 13 million businesses in the U.S. — 39% of all firms — which employ almost 10 million workers and generate $1.8 trillion in annual revenue
• Women of color own 50% of all women-owned businesses, employ nearly 2.4 million people, and generate $423 billion in annual revenue.
• In fact, women of color are at the forefront of the small business boom in this country, starting new businesses at 5X the rate of all other businesses.

But they face significant barriers to accessing capital and support.

• Black business owners who apply for funding have a rejection rate that is 3X higher than that of white business owners. As a result, research shows that 61% of Black women self-fund their total start-up capital.
• In a recent survey, 76% of Black entrepreneurs said access to capital was a challenge—and of those who have never received money for their business, nearly 80% said they either could not find the right support or could not afford to pay for services that would help connect them to capital.

Fearless Fund and Accion Opportunity Fund are bridging the gap.

• Fearless Fund has directly invested almost $27 million in women-led businesses and uses partnerships to connect its extensive network of more than 60,000 entrepreneurs to the resources they need.
• Accion Opportunity Fund (AOF) has loaned $800 million to more than 30,000 small businesses since inception; in 2022, it reached over a million diverse entrepreneurs with digital tools and resources.

To request an interview with leaders from Accion Opportunity Fund and Fearless Fund, please contact Mary Ennis at mennis@aofund.org or 617-875-6581.

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