Charles Smith opened Upper Level Kutz on a busy stretch of Beatties Ford Road a couple years ago, relying solely on what he calls his legal hustle.
“I sling clippers and make my money, and I do not go through the banks,” Smith said.
Smith’s shop occupies a small, neat space in a building with a handful of other businesses. There’s a Bank of America across the street. Chase and TD Bank recently opened branches a block away at LaSalle Street, where neighborhood groups and the city have focused resources.
Smith says those places are fine to keep your money, but he’s not going to take out a loan.
“I always just save up, work, and save money and do it myself,” Smith said.
His customer, Raymond Nickerson, nods his head. Nickerson recently started Germ Busters janitorial service, off Freedom Drive, without a loan.
“The interest is out this world,” said Nickerson. “People don't want to put their self in that predicament, especially when you're in a low property area and low income coming in. You don't want to hurt yourself even more when you might have just came out of debt.”
Starting a business is tough without a loan or a cash infusion. But in Charlotte's Corridors of Opportunity, many people have done just that, building up businesses without help due to discriminatory lending practices, worries about high interest rates or distrust of banks.
To really grow their businesses, Smith and Nickerson say it’s going to take more money than they have. They’ve got their hopes pinned on a grant that doesn’t require the money to be paid back.
“They help you out, give you that boost to actually level you up, so you’ll actually be one of those contenders, you can actually be in the play,” Nickerson said.
There are currently several grant programs and groups trying to give businesses the capital and the means to grow, but some barriers remain.
Several big banks, such as Fifth-Third and Truist, are offering grants and other support to small businesses in Charlotte. The programs focus on small businesses owned by women and people of color, or those in low-income areas like the Corridors of Opportunity. Wells Fargo plans to distribute $15 million in grants through its Beyond Open program. The third and final round opens this spring.
‘That creativity does not always translate when you apply for a bank grant’
Historic West End Partners works with businesses in several neighborhoods on the city’s west side. J’Tanya Adams leads the group and sits on Beyond Open’s advisory council.
“These grants are wonderful. I wish these things had happened sooner,” Adams said.
In the 1930s, appraisers for the federal government labeled all Black neighborhoods hazardous for loans, regardless of their prosperity. The legacy of redlining is still apparent on Charlotte’s west side, and it pushed many businesses to find other ways to survive outside the banking system.
“When you have bootstrapped for 20, 30 years — not been able to get access to any type of capital, for whatever reason, systemic reasons — you're already behind the curve, and you've learned to be creative along the way to run your business and keep the doors open,” Adams said.
She’s seen businesses use personal savings to plug business expenses, which can complicate bookkeeping and land businesses in legal trouble. Not having some of these basic records can disqualify businesses for grants since the grantors want to ensure some accountability.
Most of business owners she works with, Adams says, have developed the grit that comes with bootstrapping.
“That creativity does not always translate when you have to make application for a bank grant,” Adams said.
She says that’s an asset that banks should take into account.
Adams says a distrust of banks has also kept businesses from applying.
Grant programs and groups offer support to try and overcome barriers
Foundation For The Carolinas, which administers the Beyond Open grants, knew there were a lot of barriers to overcome. They received input from small businesses before kicking off each round, with door-knocking to get the word out and training in presenting business plans and records. The applications don’t require credit scores and smaller grants require less paperwork, but Tracy Russ with Foundation For The Carolinas says some accountability is important.
“Small business owners themselves wanted to make sure that people that were applying and could possibly receive grants were legitimate businesses and not just someone who manufactured a business or started three months prior just to get grant money,” Russ said.
The foundation enlisted groups such as ASPIRE Community Capital to help with the effort. ASPIRE’s Christopher Capel oversees the training.
“In a lot of cases, it is just about information,” said Capel. “’Oh, I didn't know I was supposed to do that. Oh, I didn't know that there was a way.’ And so, once they are aware most of them do, in fact, apply those learnings.”
ASPIRE trains a lot of people on how to start and run a business, and gives out small loans too. A majority of those they work with are people of color. The first step, Capel says, is establishing trust. The group’s goal is to turn hustlers into CEOs and radically transform communities through entrepreneurship.
‘In order for me to make this business happen, it’s up to me’
Cherie Torrence has turned to Aspire for help with her business Serenity, Acupuncture and Wellness. She’s determined.
“My life depends on it. So in order for me to make this business happen, it's up to me. So I just have to make it happen,” Torrence said.
Right now she travels to her clients, but Torrence wants to open a space around Cornelius or Huntersville. She doesn’t feel comfortable taking out a loan, so she hopes to get the money in grants. If not, Torrence says she’ll rely on “a prayer and credit card” and whatever other funding she can get.
Michelle Ashley owns Buzz City Bar & Grill on Beatties Ford Road. It is one of about 300 businesses and nonprofits to land a Beyond Open grant. Several thousand applied. Ashley used some of the money to purchase a van to help with her alcohol pickups. Her bar is beside Upper Level Kutz.
Business is going well, but challenges arise. The latest one was two break-ins within a month this fall.
“It put me in debt like $5,000 because I had to repair windows. I had to repair the tent that was on the windows and replace all the alcohol that they stole. I mean, it was awful,” Ashley said.
Still, she says Beatties Ford Road is the place where she wants to run her business. She grew up on the next street over. Ashley hasn’t been able to get insurance coverage that includes break-ins due to her location. It’s another reminder that challenges don’t end when a grant comes in.
