August 25th 2023.
Kelly Ifill was not interested in becoming an entrepreneur. She was a school teacher, MBA candidate, and a staffer for seed-stage venture capital firms. However, after witnessing small businesses in her hometown of Brooklyn, New York struggling to gain traditional bank loans and commercial checking accounts, Ifill changed her mind.
Ifill observed that Black businesses were less likely to be approved for loans and if they were, they had to pay higher rates. This inspired her to create Guava, an online banking platform geared towards Black small-business owners.
Since launching in January, Guava has gained over 3,000 members and its members are diverse. Small-business owners can open a checking account for their business through Guava “for free in minutes,” and up to 250,000 in deposited funds are insured by the FDIC. The company also provides pilot programs to offer business loans, and they recently launched Huddle, which serves as a network for members to share information and learn from industry leaders and financial experts.
Ifill's understanding of the challenges faced by minority entrepreneurs has been key to Guava's early success. She believes that if more people support Black-owned businesses, banks and financiers investing in these businesses will benefit significantly. Every entrepreneur should have equal access to resources to help them build sustainable businesses, and that's a problem for everyone.
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