Small business owners often face hurdles in accessing funding that can foster growth and sustainability. Square’s newly announced Cornerstone Grant Program aims to address this issue by providing not only financial support but also mentorship and resources to help entrepreneurs thrive. As a pivotal initiative, the program combines $10,000 grants with tailored guidance and mentorship, revealing a constructive move toward enhancing access to capital for small businesses.
Square’s deep-rooted understanding of financing challenges among small business owners stems from its extensive experience in lending, notably disbursing over $22 billion. A striking fact from their 2024 data shows that more than half of the loans were issued in states with the lowest approval rates for small business funding. This stark contrast highlights Square’s commitment to reaching underserved entrepreneurs, particularly women and minority-owned businesses. In fact, approximately 57% of Square Loan recipients identified as women, while 34% were minority-owned, with the percentage of loans extended to Black or African American-owned businesses more than double that of traditional USDA 7a loans.
The Cornerstone Grant Program reflects a significant investment in community support, offering selected merchants a comprehensive package that includes:
- A $10,000 grant deposited directly into their Square Checking account.
- One-on-one guidance from a certified accountant ranked among Forbes’ Top 200.
- Financial therapy sessions with a certified therapist.
- Business technical assistance from the Northwest Mountain Minority Supplier Development Council.
- Access to nonprofit resources and networking opportunities.
“Access to fair financing is one of the top challenges that entrepreneurs contend with,” noted Adam Turnbull, Head of Banking at Square. “A well-timed $10,000 investment can be transformative for a small business… giving sellers a blueprint for sustainable growth.”
Statistics reveal that many small businesses do not need large sums to stimulate growth. With the average SBA loan size being markedly higher at $443,097, Square’s average loan of $10,000 has been shown to effectively facilitate expansions and marketing projects, proving that smaller amounts can yield significant outcomes. Around 70% of Square Loans are dedicated to business expansion through various means, including purchasing new equipment or opening new locations.
The integration of the Cornerstone Grant Program into Square Banking’s suite of financial products reflects a growing trend within the financial landscape: the need for tailored banking solutions that cater specifically to small businesses. As Square offers instant access to daily sales via Square Checking, automated budgeting tools through Square Savings, and proactive loan offers uniquely tailored to their businesses, it simplifies financial management for small business owners.
However, while the advantages of the Cornerstone Grant Program are clear, there are practical considerations small business owners should keep in mind. The program currently targets businesses already using Square’s services, which may limit participation to those who are familiar with or have integrated Square into their operations. Additionally, with expected high demand, competition for grants could be fierce, necessitating a careful application process.
Small businesses can apply for the grant today on Square’s website, with recipients being announced in November. By leveraging Square’s financial products and the resources provided through the grant, participating businesses not only receive financial support but also enhance their operational knowledge, positioning themselves better in a competitive market.
Square’s commitment to facilitating growth among small business owners demonstrates how adaptive financial solutions can redefine access to capital. For entrepreneurs seeking to elevate their business, the Cornerstone Grant Program presents a valuable opportunity worth exploring. For more information, you can visit the official press release here.
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