Community Capital Effect

The pandemic has shown us how interconnected the economy is. As we watched one business closure lead to the next, we were reminded that local businesses are the foundation of a thriving community. We saw firsthand that when local businesses hurt, the community hurts. The good news is that this can also work the other way around, because growth and strength of a community lead to resilience and prosperity. That is the notion that our fund is built on.

When we support a business with the necessary capital we have the inherent chance of strengthening the businesses around it, because a financially supported business has a shot at realizing its potential, and when it does so successfully, it bolsters the community – creating jobs, building wealth, attracting tourism, helping real estate. 

The community capital effect lifts entire communities, and our capital are the fuel that gets that going.

Small businesses are crucial 
to the economy and our communities

1 %

businesses in the US are small businesses

1 %

America’s annual economic activity produced by small businesses

1 %

All net new jobs generated by
small businesses

For every $1 spent at a small business, around 67% stays in the local community and creates an additional 50 cents in local business activity due to employee spending and businesses purchasing local goods and services.​

minority-owned businesses lead in growth

In 2021, Black entrepreneurism ranked higher than white-owned and asian-owned companies.


higher growth rate of LatinX owned businesses compared to non-minority owned businesses since 2015


rate that women of color have been starting businesses compared to the overall population



higher growth rate
of employees compared to non-minority-owned businesses


Minority-owned small businesses are more likely to hire locally and create jobs within their communities


more than ever, they face financial risk

1 %

were at risk of financial distress before the pandemic, compared with about 27% of white-owned businesses

1 %

that ceased operations at the start of the pandemic, compared with 17% for white-owned firms 


due to racism, access to loans is grossly uneven

60% loan approval rate from large banks to white small business owners 


29% loan approval rate from large banks to black small business owners

Top challenge that SMBs owners face

Black owners = Access to credit

All other demographics = Low customer demand

+10% rate of failure for black business-owners to receive full financing even when approved

The lending system

is limiting the potential of minority-owned businesses

An unfair system by design

Minority owners are labeled ‘high-risk’ candidates through valuations purposely designed against them such as income levels and personal collateral including home ownership for guarantees.

Black owned businesses are more likely to face increased requirements for bank loans than white counterparts

Dissuading minority business- owners from applying…

25% of black-owned firms reported forgoing applying for credit with 60% indicating that they felt like they would be turned down 

Fair lending laws  offer limited recourse for businesses and are impractical for companies that lack financial resources.

…and ultimately, their businesses from operating.

Keeping them ALL – even the already successful, from growing.

Who We Are

Division One Capital is a fund that provides capital to minority-owned businesses so they can grow and realize their potential. We exist to help minority communities, their people, and businesses prosper.

Today, minority-owned businesses are growing at a higher rate than non-minority owned businesses. Still, access to capital remains grossly uneven for minority business owners. This reality is not surprising considering today’s lending system which is biased  rather than deciding fully on financial capability. The lending system is doing exactly what it was designed to do: it is limiting the potential of minority-owned businesses. Every business, company, or brand needs capital in order to grow steadily and have a shot at reaching their highest ambitions but the discriminatory system has created a gap of disadvantage for minorities. Our fund aims to fill that gap through non-discriminatory funding. We are a new, unbiased fund created to help minority-owned businesses grow and reach their full potential.

Unbiased funding

Creates community capital effect

Partners with banks and investors eager to help

And supports the many who are systematically disadvantaged

Our fund fills the gap of disadvantage so that minority communities, minority-owned businesses, and the individuals that make up both can prosper.

How Does It Work?

We provide capital based on a business-owner’s financial ability through purchase order and receivables funding. This leaves race and judgment out.   

We help banks and investors access nondiscriminatory funding by connecting them to minority business-owners they struggle to locate on their own. This creates the opportunity for them to invest in businesses and communities primed to grow. 

We create a community capital effect by supporting those businesses and individuals who are systematically disadvantaged. This allows for a ripple effect of growth and ultimately lifts entire communities. 

Why Does It Matter?

All businesses, people and communities should have the opportunity to prosper. Our new, unbiased fund is designed to provide capital to minority business owners, many of whom have been caught in the gap of disadvantage, who are ready and eager to grow their businesses. This growth is exciting, not only because it is just and well deserved, but because it is bound to generate more growth for communities, cities, investors, and our economy.

Economic Development for Cities
& Growth for Businesses and Communities

We want to work with you. Send us an email to get in touch.