Today, Square announced a transformative initiative designed to empower small businesses with the introduction of the Cornerstone Grant Program. This new program aims to provide crucial capital and resources for growth, addressing a persistent challenge many entrepreneurs face: access to financing.
With a $10,000 grant at its core, the Cornerstone Grant Program goes beyond mere funding. Square integrates expert mentorship into the package, helping participating businesses not only obtain financial support but also leverage it effectively. As Adam Turnbull, Head of Banking at Square, pointed out, “Access to fair financing is one of the top challenges that entrepreneurs contend with.” He elaborated that through well-timed investments like these, small businesses can see transformative growth.
The initiative is particularly timely. Research indicates that traditional financial institutions often overlook small business owners, particularly in underserved regions. Recent data reveals that more than half of Square Loans were issued in states with the lowest approval rates for small business loans. In contrast, Square has a commendable approval rate of 95%, reaching entrepreneurs often excluded from conventional lending. The initiative also stands as a beacon for diversity; 57% of Square Loan recipients identify as women-owned businesses, while 34% represent minority-owned ventures.
Recipients of the Cornerstone Grant will receive comprehensive support over a year, which includes:
- A $10,000 grant directly deposited into their Square Checking account
- One-on-one support from a certified public accountant
- Financial therapy with a board-certified therapist
- Technical assistance from the Northwest Mountain Minority Supplier Development Council
- Networking opportunities and access to nonprofit resources
The multifaceted support approach addresses a common concern among entrepreneurs: not just receiving funding, but knowing how to use it effectively to stimulate growth—something Square aims to clarify by offering mentorship alongside financial assistance.
For small businesses, practical applications of this grant mean the potential for substantial growth. According to Square’s data, a noteworthy 70% of its loans have been allocated toward business expansion projects such as equipment purchases or marketing initiatives. This suggests that even smaller grant amounts, like the $10,000 offered, can fuel significant advancements for small enterprises.
While there are clear benefits associated with the Cornerstone Grant Program, small business owners should also be aware of potential challenges. The competitive nature of the program could mean that many deserving applicants may not receive funding. Furthermore, with the increased oversight that comes with receiving grants, participants may find themselves navigating through additional regulatory requirements or accountability checks that could consume valuable time and resources.
Businesses interested in taking part in this funding opportunity can apply starting today through the Cornerstone Grant Program’s dedicated website. Announcements regarding grant recipients are set to be revealed in November this year.
As Square continues to expand its suite of banking services—including Square Checking, Square Savings, and tailored loan offerings—the Cornerstone Grant Program is viewed as a significant step towards addressing the unmet financial needs of small businesses. These offerings aim to simplify cash flow management and foster sustainable growth in an increasingly complex economic landscape.
Square’s commitment to inclusivity and support for small businesses reinforces its stance as a critical player in the financial services sphere, particularly for those often overlooked by traditional institutions. For more information, you can visit the original announcement here.
Image Via BizSugar
