Breaking Barriers: The Impact of Honeycomb Credit on Minority-Owned Businesses

Transforming Challenges Into Opportunities for Success

Adrienne M. Fudge of 40 Dreams Catering raised $50,000 to keep her business growing.

All small businesses are important to the growth and development of their communities. But minority-owned businesses are the lifeblood of their neighborhoods. They push economies and create jobs, all while bringing new ideas and people into the mix. Yet, despite their contributions, many minority entrepreneurs face roadblocks to growth when they need capital or other resources. 

Understanding the Barriers for Minority-Owned Businesses

If you’ve been in business for any length of time, you know you need money to grow. For many business owners, traditional banks help. But access to capital remains one of the biggest challenges for minority-owned businesses. Traditional banks and financial institutions often create strict lending requirements. So it’s more difficult for entrepreneurs from underserved communities to obtain funding. Some of the barriers include:

• Historical Disparities: Generations of economic inequality have resulted in lower credit scores and limited collateral for many minority entrepreneurs.
  

• Limited Banking Relationships: Minority-owned businesses often have fewer established connections with traditional financial institutions, reducing their chances of getting a loan.
  

• Higher Interest Rates & Denial Rates: Studies show that minority business owners are more likely to face loan denials or be charged higher interest rates compared to others.
  

And the cycle repeats and repeats. 

Honeycomb Credit's Solutions for Breaking Barriers

But we can change the narrative. Honeycomb Credit helps small businesses get capital with community-driven funding solutions. This means we can serve minority entrepreneurs better than traditional lending institutions. Unlike traditional banks, Honeycomb Credit helps businesses raise funds from their communities. Your customers become investors - making your business and community stronger together. You ask your community to support you, and you get the capital you need to continue to serve your community.

Yes, it’s simple. 

And, yes, it works.

Success Stories of Barrier-Breaking Entrepreneurs

One inspiring example of a minority-owned business that has overcome significant obstacles with the support of Honeycomb Credit is 40 Dreams Catering in Maplewood, NJ. Founded by Adrienne M. Fudge, 40 Dreams Catering specializes in providing healthy, no-salt, and no-sugar-added meals to senior citizens and disabled adults across nine counties in New Jersey. Operating under a Medicaid-funded program, they make sure vulnerable populations receive nutritious meals at no cost, with expenses covered by Managed Care Organizations (MCOs).

Unfortunately, 40 Dreams Catering faced a financial crisis during the Change Healthcare cyber attack, which disrupted payment systems for healthcare providers nationwide. This left 40 Dreams Catering with outstanding payments, creating a strain on their operations. Plus, before the cyber attack, critical kitchen equipment, including commercial convection ovens and a reach-in refrigerator, broke down and needed urgent replacement.

How Honeycomb Credit Helped

Honeycomb Credit helped 40 Dreams Catering raise $50,000 from 24 investors through a crowdfunded loan. This funding allowed them to:

• Cover essential working capital to maintain operations during the payment disruption.
  

• Replace needed kitchen equipment to continue serving their clients efficiently.
  

• Sustain their commitment to providing healthy meals to seniors and disabled adults without interruption.

  
  

Final Thoughts

By helping to break down financial barriers, Honeycomb Credit is empowering minority-owned businesses like 40 Dreams Catering not only to survive but to thrive, through accessible funding, fair lending practices, and top-quality marketing ideas. We are dedicated to building a more equitable landscape for minority-owned businesses. 

Together, we can create a future where every entrepreneur, regardless of background, has the opportunity to succeed. If you're a small business owner looking for funding, Honeycomb Credit is here to help.