The Houston Fund for Social Justice and Economic Equity in partnership with Wells Fargo announced today the first round of Open for Business Grant recipients - 219 diverse Houston-area small businesses and non-profits will receive a combined $5 million ranging between $10,000 and $65,000. The Fund’s Open For Business Grant program was established with a $20 million donation from Wells Fargo announced in February of this year and provides local small business owners with new ways to grow and own more of their businesses. The $5 million announced today marks the first phase of the program.

“These grants are such incredible tools to not only help fund foundational change in the Houston community but also empower and support diverse small business owners to innovate and evolve,” said Mayor Sylvester Turner. “The collaboration between Wells Fargo and the Houston Fund for Social Justice and Economic Equity is so important in fostering economic development for our city.”

The 219 businesses or 501c3 non-profits selected out of more than 2,500 applicants had to be located in the Houston-area, consist of 50 employees or less, be led by people of color, and have been established by December 31, 2021. In addition to this criteria, recipients were selected that work diligently to impact the Houston Fund for Social justice and Economic Equity’s four pillars:

Social & Racial Justice: Social Services, Criminal Justice, Healthcare, Civic Engagement, Immigrant Rights, Environmental Justice, Domestic Violence/Human Trafficking

Economic Development: Support future talent, startups business owners and workforce development activities that aim to address income and wealth disparities

Youth Empowerment & Education: Provide education, literacy, innovation, mentorship, advancement, scholarship and career opportunities

Community Building: Secure access to vital resources, revitalize community spaces, celebrate Black history and culture.

The majority of the businesses and nonprofits selected are of African American/Black, Hispanic, and Asian ownership.

“We are committed to bridging the economic equity gap in our city and supporting Houston’s underrepresented and underfunded minority-owned small businesses and nonprofit organizations,” said Thomas Jones, Board President, Houston Fund for Social Justice and Economic Equity. “Thanks to Wells Fargo’s generosity, we are making a monumental effect upon the lives and livelihoods of so many. Not only does this benefit these individuals and businesses but it will help them make a lasting impact in our community.”

The $20 million donation comes from Wells Fargo’s Open for Business Fund, a roughly $420 million national small business recovery effort with a focus on racially and ethnically diverse small business owners, who have been disproportionately affected by the pandemic. The fund was created from the gross processing fees that Wells Fargo received from Paycheck Protection Program loans made in 2020. Wells Fargo has donated funds to Community Development Financial Institutions (CDFIs) and local nonprofits across the nation.

The Houston Fund for Social Justice and Economic Equity will distribute funding in the form of grants over a three-year period towards the purchase of property, equipment and other tangible assets, supporting economic development in underserved communities. Over the life of the grant program, the funding is estimated to reach more than 500 small businesses in Houston and is aimed to help business owners and non-profits with new ways to grow and increase capacity. The application portal for the next round will open in 2023 and recipients will be announced later in the year. For the latest updates and information, please visit houstonequityfund.org.