Houston-based business services platform Hello Alice is teaming up with New York-based Mastercard Inc. (NYSE: MA) on a new financial product.
In partnership with Mastercard and First National Bank of Omaha, Hello Allice is launching a "Hello Alice Small Business Mastercard" to broaden its portfolio of capital products, the company announced Aug. 16. The product features several offerings tailored specifically for small businesses, including on-demand access to professional business advisers and rewards for purchasing things like office supplies, wireless telephone services, business software and more.
The product was also designed to maximize access to capital and opportunities to build credit for small-business owners, Hello Alice said. Business owners with limited or poor credit history can use a specific credit-building credit card to access the card's full benefits while improving their credit. They can then graduate from a secured card, which requires a security deposit in order to open an account, to an unsecured card with a revolving line of credit.
"We designed the Hello Alice Small Business Mastercard to meet the needs of small-business owners where they are, breaking longstanding barriers to mentorship, access to credit, and overall financial health for those who have traditionally been denied access," said Elizabeth Gore and Carolyn Rodz, co-founders of Hello Alice.
Hello Alice finds that small-business owners and entrepreneurs who are women, people of color, LGBTQ, veterans and disabled continue to face challenges in accessing capital to support their businesses. The company's latest Small Business Capital Access Study found that 78% of small-business owners claim lack of access to capital is limiting their ability to manage day-to-day operations, while 89% said barriers in accessing capital are limiting potential business growth.
Around 68% of business owners on the Hello Alice platform are people of color, 63% are female, and 17% are military-affiliated.
"Small businesses are the backbone of our communities, yet too often face significant obstacles in securing the resources they deserve, particularly if the owners come from underserved communities," said Mastercard North American President Linda Kirkpatrick.
The Hello Alice platform is free and has served more than a million small-business owners in the U.S. The platform offers funding opportunities, business education tools and other curated opportunities for owners and entrepreneurs.
The company raised a $21 million Series B round from investors last year. Hello Alice's investors include Serena Williams' venture capital group, Serena Ventures; Silicon Valley Bank; Phyllis Newhouse; and Austin-based Bumble. The NAACP acquired an ownership stake in Hello Alice last year, which was a first for the nation's largest civil rights group.
Hello Alice was one of three Houston-area companies selected for Inc. magazine's Best in Business awards last year, which recognized them for their impact on their industries, the environment or society throughout 2021.
